KUALA LUMPUR (Oct 17): AllianceDBS Research said the hurdle for Gadang Holdings Bhd (Gadang) was at RM3.04 and that Gadang  had on Oct 14 traded marginally higher to RM3.02 before closing at the day’s low of RM2.98 (down 2 sen or 0.66%).

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

“Following the down close on Oct 14, the stock is likely to move lower with immediate support seen at RM2.90.

“A fall below RM2.90 should see further price decline to the subsequent support at RM2.80.

“The resistance is pegged at RM3.04. A rise above RM3.04 would lift the stock to the next resistance zone, RM3.20 – RM3.30,” it said.

AllianceDBS Research said stock volume traded on Oct 14 was 710,000 shares compared to the 3-month average volume of 2.47 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.