KUALA LUMPUR (Jan 19): AllianceDBS Research said Toyo Ink Group Bhd (Toyoink) buying volume had expanded and that Toyoink had on Jan 18 gapped up to reach a high of 60 sen before closing near the day’s high at 59 sen (up 8.5 sen or 16.8%).

In its evening edition yesterday, the research house said Toyoink crossed over the 20-day and 50-day moving average lines on Jan 18.

“The upside gap indicated the urgency to establish stock position.

“Following the up close on Jan 18, the stock is likely to move higher again with immediate hurdle at 62 sen.

“A crossover of 62 sen should see further price rise to the next overhead resistance at 67 sen.

“The support is pegged at 57 sen. A fall below 57 sen would put pressure on the stock down to the subsequent support zone, 53 sen – 55 sen,” it said.

AllianceDBS Research said stock volume traded on Jan 18 was 290,000 shares compared to the 3-month average volume of 5,000 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.