KUALA LUMPUR (Jan 19): AllianceDBS Research said Ekovest Bhd (Ekovest) had on Jan 18 gapped up to cross over the RM2.60 hurdle.

It said the stock subsequently reached a high of RM2.62 before closing at RM2.60 (up 8 sen or 3.17%).

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

“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 RM2.70.

“A crossover of RM2.70 should see further price rise to the next overhead resistance at RM3.00. The support is pegged at RM2.60. “A fall below RM2.60 would put pressure on the stock down to the subsequent support zone, RM2.40 – RM2.50,” it said.  

AllianceDBS Research said stock volume traded on Jan 18 was 5.84 million shares compared to the 3-month average volume of 2.31 million 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.