Kuchai poised to test overhead resistance level

ONCE again, the FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) consolidated in tandem with Asian stock markets yesterday. On Bursa Malaysia, declining counters outpaced advancing counters by 429 to 257.

The FBM KLCI fell from its intra-day day high of 1,581.69 to its intra-day low of 1,577.76 yesterday. It closed at 1,579.84 points, giving a day-on-day loss of 0.83 point, or 0.05 per cent.

Kuchai Development Bhd's price trend moved higher to close at RM1.12, posting a day-on-day gain of 11 sen, or 10.89 per cent.

Chartwise, Kuchai's daily price trend fell from its recent high of RM1.22 on May 23 2011 to its intra-day low of RM1.00 on Wednesday, recording a total loss of 22 sen, or 18.03 per cent.

Its 60-minute price trend staged a technical breakout of its intermediate-term downtrend (B1:B2) on 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 its daily fast and slow MACDs continued to stay above their respective neutral reference lines.

Kuchai's 60-minute price trend is likely to stage a follow-through technical rebound and then re-challenge its overhead resistance (RM1.23 to RM1.25 levels).