KUALA LUMPUR (Sept 22): JF Apex Securities said the immediate resistance for Silk Holdings Bhd (Silk) was at 54 sen and that Silk suffered a downtrend from an intraday high of 86 sen back on Nov 14, 2014 and reversed the decline from its record low of 35 sen on August 25, 2015.

In a note today, the research house said that two days ago, Silk’s share price crossed above the 50-day (blue line) and 100-day (pink line) moving averages after closing 5.5 sen higher at 47 sen.

JF Apex Research said that yesterday, Silk gained another 2 sen after breaching the 200-day moving average and traded above a resistance level of 47 sen where the 23.6% Fibonacci retracement line stood.

“We believe an uptrend will be fortified with immediate support at 46 sen, marked by the 100-day moving average.

“Technical indicators are positive with the MACD having crossed above its signal line coupled with RSI entering the overbought zone.

“Immediate resistance is seen at 54 sen marked by 38.2% Fibonacci retracement line. Second resistance is seen at 60sen where 50.0% Fibonacci line stands.

“For the downside, we advise traders to cut loss if the price falls below the second support of 38 sen,” it said.