Closed:                    4.5 sen

Resistance:              (R1) 6.0 sen /(R2) 8.5 sen

Support:                  (S1) 3.5 sen /(S2) 2.5 sen

DGB Asia Bhd (0152) rose 1.5 sen to 4.5 sen yesterday to test the 100- (pink line) and 200-day (orange line) moving averages.

Technical indicators are encouraging with the MACD crossing above its signal line and the RSI is climbing towards the overbought zone.

After yesterday’s surge, the stock could pull back on profit taking but has a chance to extend its rebound if share price sustains above its immediate support of 3.5 sen marked by the 50- moving average (blue line). For the downside, we advise traders to cut loss if the price falls below the second support of 2.5 sen, marked by its recent low.