KUALA LUMPUR (Aug 26): AllianceDBS Research said the overhead resistance for Hua Yang Bhd (Huayang) was at RM1.89 and that Huayang had on Aug 25 crossed over the RM1.85 hurdle to reach a high of RM1.88 before closing near the day’s high at RM1.87 (up 2 sen or 1.08%).

In its evening edition yesterday, the research house said Huayang continued to trade above the 20-day and 50-day moving average lines.

“Following the up close on Aug 25, the stock is likely to move higher again with immediate hurdle seen at RM1.89.

“A crossover of RM1.89 should see further price rise to the next overhead resistance zone, RM1.93 – RM1.98.

“The support is pegged at RM1.85. A fall below RM1.85 would put pressure on the stock down to the subsequent support at RM1.81,” it said.

AllianceDBS Research said stock volume traded on Aug 25 was 320,000 shares compared to the 3-month average volume of 110,000 shares.

The research house said that indicators wise, the MACD was above the 9-day moving average line with the buy signal remains intact.

It said the relative strength index indicated that the stock was currently in an overbought zone.