Based on our observation, GDEX’s share price has been trading above its nearterm support, rebounding and reversing from the low after touching the support line. MACD indicator is trending downwards, showcasing the downward-bias outlook while further consolidation is also expected as depicted by both Stochastic and RSI indicator trending further into their respective oversold region. With that, we believe that the share price could consolidate towards its multi-month support level of RM1.57 (S1). Thus, we advocate investors to watch out for reversal signal upon the share price hitting the S1 support level, before entering the stock.

Source: Kenanga Research - 6 May 2015