Cycle & Carriage buying volume expanded, says AllianceDBS Research

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KUALA LUMPUR (July 25): AllianceDBS Research said the buying volume for Cycle & Carriage Bintang Bhd (CCB) had expanded and that CCB had on July 22 traded higher to RM3.50 before closing near the day’s high at RM3.48 (up 28 sen or 8.75%).

The research house in its evening edition last Friday said CCB continued to trade above the 20-day and 50-day moving average lines.

“Following the up close on July 22, the stock is likely to move higher again with immediate hurdle seen at RM3.50.

“A crossover of RM3.50 should see further price rise to the next overhead resistance zone, RM3.65 – RM3.70.

“The support is pegged at RM3.30. A fall below RM3.30 would put pressure on the stock down to the subsequent support zone, RM3.10 – RM3.15,” it said.

AllianceDBS Research said stock volume traded on July 22 was 320,000 shares compared to the 3-month average volume of 30,000 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