MAS in mild technical rebound

SHARE prices on Bursa Malaysia fell across the board yesterday.

Overall losers outpaced gainers by 464 to 207.

The FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) fell from its intra-day high of 1,359.73 to its intra-day low of 1,349.5 yesterday.

It closed at 1,352.91 points, giving a day-on-day loss of 6.8 points, or 0.5 per cent.

Malaysian Airline System Bhd (MAS) staged a mild technical rebound to close at RM2.16 yesterday, giving a day-on-day gain of 2 sen, or 0.94 per cent.

Chartwise, MAS' daily price trend rebounded from its low of RM2 on July 6 to its intra-day low of RM2.24 yesterday, posting a total loss of 24 sen, or 12 per cent.

Its hourly price trend staged a technical breakout of the upper resistance (B1:B2) of its ascending triangle pattern formation yesterday and continued to stay above its resistance at the market close.

Its hourly fast Moving Average Convergence Divergence stayed above its hourly slow Moving Average Convergence Divergence (MACD).

Both of its hourly fast and slow MACDs continued to stay below their respective neutral reference lines.

With the technical breakout and subsequent re-test, MAS' hourly price trend is likely to stage a follow-through rebound.

The subject expressed above is based on technical analysis and opinions of the writer. It is not a solicitation to buy or sell.

by S.N. Lock

Business Times