KUALA LUMPUR (March 31): AllianceDBS Research said Pharmaniaga Holdings Bhd (Pharma) was on a downtrend and that Pharma had on March 30 gapped down to a low of RM5.63 before closing off the day’s low at RM5.68 (down 6 sen or 1.04%).

In its evening edition yesterday, the research house said Pharma fell below the 20-day and 50-day moving average lines on March 30 after spending 1 day above the same 2 MA lines.

“The downside gap indicated the urgency to unload stock position.

“Following the down close on March 30, the stock is likely to move lower again with immediate support seen at RM5.60.

“A fall below RM5.60 should see further price decline to the subsequent support at RM5.50.

“The hurdle is pegged at RM5.72. A rise above RM5.72 would lift the stock to the next resistance zone, RM5.80 – RM5.90,” it said.

AllianceDBS Research said stock volume traded on March 30 was 30,000 shares compared to the 3-month average volume of 240,000 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.