KUALA LUMPUR (March 25): AllianceDBS Research said Melewar Industrial Group Bhd (Melewar) buying volume had expanded and that Melewar had on March 24 traded higher to 32 sen before closing off the day’s high at 30.5 sen (up 3sen or 10.90%).

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

“Following the up close on March 24, the stock is likely to move higher again with immediate hurdle seen at 33 sen.

“A crossover of 33 sen should see further price rise to the next overhead resistance at 35 sen.

“The support is pegged at 29 sen. A fall below 29 sen would put pressure on the stock down to the subsequent support at 26.5 sen,” it said.

AllianceDBS Research said stock volume traded on March 24 was 4.34 million shares compared to the 3-month average volume of 90,000 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.