ALAM’s share price has violated its 3 SMA support levels (20-day, 50-day and 100-day SMA) with a long bearish candlestick yesterday as market turned more cautious to the O&G sector’s bullish rally recently. Chart-wise, the weakening momentum may signal further correction in the making. The crucial long-term uptrend support level @RM1.40-RM1.42 may attract buying interest for short-term traders as Stochastic is depicting oversold condition. However, a shorty-term technical rebound is expected. Should the share price fail to sustain above the crucial support level, we reckon ALAM may extend the down-cycle towards previous low @RM1.20. 

 

Source: Kenanga