CI Holdings' overhead resistance may be challenged

THE FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) consolidated in step with the technical pullbacks on the New York and Asian stock markets yesterday. On Bursa Malaysia, declining counters overwhelmed advancing ones by 602 to 167.

The FBM KLCI fell from its intra-day high of 1,587.69 to its intra-day low of 1,574.52 yesterday. It closed at 1,578.10, giving a day-on-day loss of 10.48 points, or 0.66 per cent.

CI Holdings Bhd price trend moved higher to close at RM3.70, posting a day-on-day gain of 19 sen, or 5.41 per cent.

Chartwise, CI Holdings' daily price trend rebounded from its recent low of RM2.95 on June 15 2011 to its intra-day high of RM3.75 yesterday, giving a total gain of 80 sen, or 27.12 per cent.

Its 60-minute price trend staged a technical breakout of its short-term downtrend (B1:B2) yesterday and continued to stay above it.

Its 60-minute fast MACD (Moving Average Convergence Divergence indicator) continued to stay above its daily slow MACD yesterday. Both of its daily fast and slow MACDs continued to stay above their respective neutral reference lines.

CI Holdings' 60-minute price trend is likely to stage a brief consolidation before continuing its rebound. It is likely to re-challenge its overhead resistance (RM3.71 to RM3.85 levels).