KUALA LUMPUR (Aug 3): AllianceDBS Research said Rhone Ma Holdings Bhd (Rhonema) had on Aug 2 tested previous day’s low of RM7.17 before closing unchanged at RM1.18.

In its evening edition yesterday, the research house said Rhonema continued to trade below the 20-day (blue) and 50-day (red) moving average lines.

“Given the recent price action, the stock is likely to move between RM1.12 and RM1.25 in the coming few days.

“A fall below RM1.12 should see further decline to the subsequent support at RM1.05.

“However, a rise above RM1.25 would lift the stock to the next resistance at RM1.30,” it said.

AllianceDBS Research said stock volume traded on Aug 2 was 59,000 shares compared to the 3-month average volume of 52,000 shares.

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

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