Media Prima is exhibiting signs of  indecision at the 200-day MAV line lastFriday. Meanwhile, bulls and bears are still fighting for domination at thiscritical moving average line, which now lies at the RM2.63 level. In view ofthe significance of this line since October last year, we  would like to highlight  that a clean breakdown  of this line would likely trigger panic selling which would drag its shareprice to the next strong support level of RM2.41.

Media Prima was consolidating the Sept-Oct 2011 rebound atbelow the 200-day MAV line from Nov 2011 to Jan 2012. The stock then brokeabove the moving average line in Feb 2012, which signalled the end of theconsolidation phase. Nevertheless, the breakout only led to a sideways trend atabove the moving average line and it is at great risk of returning back belowthe line.

Its volume increased drastically while the stock was tradingat the 200-day MAV line last Friday. Meanwhile, bulls and bears are stillfighting for domination at this crucial level. The importance of this line is highlighted by the circles in the above dailychart. From the chart, we could observe that the stock experienced four obviousfailed breakout attempts at the 200-day MAV line. The high volume on lastFriday, during which the stock was testing the moving average line, alsoconfirms that many traders are indeed watching the line closely.

Last Friday, the stock closed right at the 200-day MAV line,which is situated at the RM2.63 level. We would like to emphasize  that  if this line is violated decisively, strong sellingpressure is expected to emerge which will likely drag the stock towards thenext strong support of RM2.41. And should the RM2.41 level be violated too,look for another strong support at the RM2.31 level. To the upside, look for animmediate resistance at the RM2.78 level, followed by RM2.97.

Source: OSK188