FGV gapped down, says AllianceDBS Research

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KUALA LUMPUR (Dec 4): AllianceDBS Research said FGV Holdings Bhd (FGV) had on Dec 3 gapped down to a low of RM0.81 before closing off the day’s low at 84.5 sen (down 4 sen or 4.52%).

In its evening edition yesterday, the research house said FGV continued to trade below the 20-day (blue) and 50-day (red) moving average lines.

It said the downside gap indicated the urgency to unload stock position.

“Following the down close on Dec 3, the stock is likely to move lower again with immediate support at 80 sen.

“A fall below 80 sen should see further price decline to the subsequent support at 70 sen.

“The hurdle is pegged at 88.5 sen. A rise above 88.5 sen would lift the stock to the next resistance at 97 sen,” it said.

AllianceDBS Research said stock volume traded on Dec 3 was 20.9 million shares compared to the 3-month average volume of 7.35 million shares.