Tune Protect Group Bhd suffered a long downtrend since hitting an intraday high of RM2.50 back in 7th August 2014 but has started to reverse the decline since early this year from its record low of RM1.10 on 20th January 2016. The 50-day (blue line) moving average has crossed above the 100-day (pink line) and 200-day (orange line) moving averages to signal a bullish trend.

The share price has also broken the long-term downtrend line as well as the 23.6% retracement line. Technical indicators are positive with the MACD having crossed above signal line earlier this month and the RSI is approaching the overbought region. Immediate resistance is seen at RM1.63 marked by the 38.2% Fibonacci retracement line.

Second resistance is marked by 50.0% Fibonacci retracement line at RM1.79. Following recent gains, traders can wait for a pull back before entering. The first support is seen at RM1.43, marked by the 23.6% Fibonacci retracement line.

For the downside, we advise traders to cut loss if the price falls below second support, seen at RM1.34 and marked by the 200-day (orange line) moving average.

Source: JF Apex Research - 20 May 2016