The poor oil and gas sector outlook due to the downtrend in crude oil price has affected ALAM. Its share price has been trending downwards sharply since 28-Oct (-25.0%). Yesterday, ALAM was down by 8.0 sen (-8.8%) to settle at RM0.825 coupled with a high in daily trading volume. MACD indicator has performed a negative Signal line crossover, while both RSI and Stochastic are in deeply oversold territory, indicating strong selling pressure. We suggest traders look to buy into ALAM at the strong support level of RM0.75 (S1), should there be any reversal signal.

 

 

 

Source: Kenanga