KUALA LUMPUR (April 29): AllianceDBS Research said SapuraKencana Petroleum Bhd (SKPetro) had on April 28 gapped down to reach a low of RM1.62 before closing at RM1.64 (down 13 sen or 7.34%).

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

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

“Following the down close on April 28, the stock is likely to move lower again with immediate support seen at RM1.60 in the coming few days.

“A fall below RM1.60 should see further decline to the subsequent support zone, RM1.50 – RM1.56.

“The hurdle is pegged at RM1.69. A rise above RM1.69 would lift the stock to the next resistance at RM1.80,” it said.

AllianceDBS Research said stock volume traded on April 28 was 101.5 million shares compared to the 3-month average volume of 14.5 million 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 an oversold zone.