KUALA LUMPUR (May 12): AllianceDBS Research said Gadang Holdings Bhd (Gadang) had on May 11 traded higher to RM1.34 before closing off the day’s high at RM1.30 (up 2 sen or 1.56%).

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

“Following the up close on May 11, the stock is likely to move lower with immediate support at RM1.25.

“A fall below RM1.25 should see further decline to the subsequent support zone, RM1.20 – RM1.22.

“The hurdle is pegged at RM1.35. A rise above RM1.35 would lift the stock to the next resistance zone, RM1.40 – RM1.44,” it said.

AllianceDBS Research said stock volume traded on May 11 was 19.1 million shares compared to the 3-month average volume of 6.34 million shares.

The research house said that indicators wise, the MACD was marginally above the 9-day moving average line with a buy signal just being emitted.

It said the relative strength index indicated that the stock was currently in a neutral zone.