KUALA LUMPUR (June 9): AllianceDBS Research said SapuraKencana Petroleum Bhd (SKPetro) was in position to trade higher and that SKPetro had on June 8 traded higher to RM1.77 before closing at RM1.74 (up 4 sen or 2.35%).

In its evening edition yesterday, the research house said SKPetro crossed over the 20-day and 50-day moving average lines on June 8.

“Following the up close on June 8, the stock is expected to move higher again with immediate hurdle seen at RM1.78.

“A crossover of RM1.78 should see further price rise to the next overhead resistance zone, RM1.85 – RM1.92.

“The support is pegged at RM1.65. A fall below RM1.65 would put pressure on the stock down to the subsequent support at RM1.59,” it said.

AllianceDBS Research said stock volume traded on June 8 was 34.6 million shares compared to the 3-month average volume of 18.8 million 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.