KUALA LUMPUR (Nov 16): AllianceDBS Research said Instacom Group Bhd (Instaco) is under profit taking pressure and that Instaco had on Nov 13 traded higher to 23 sen before closing at the day’s low of 20.5 sen (down 2 sen or 8.88%).

In its evening edition last Friday, the research house said Instaco continued to trade above the 20-day and 50-day moving average lines.

“Following the weak down close on Nov 13, the stock is likely to move lower with immediate support at 20 sen.

“A fall below 20 sen should see further price decline to the subsequent support zone, 16 sen – 18 sen.

“The hurdle is pegged at 23 sen. A rise above 23 sen would lift the stock to the next resistance zone, 24 sen – 24.5 sen,” it said.

AllianceDBS Research said stock volume traded on Nov 13 was 103 million shares compared to the 3-month average volume of 22.8 million shares.

The research house said 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 the overbought zone.