Short consolidation for DXN Hldgs likely

THE FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) staged yet another follow-through technical pullback in tandem with the mixed performance on the regional stock markets yesterday. Declining counters outpaced advancing counters by 429 to 292.

The FBM KLCI fell from its intra-day day high of 1,562.48 to its intra-day low of 1,552.71 yesterday. It closed at 1,555.64 points, giving another day-on-day loss of 6.94 points, or 0.44 per cent.

DXN Holdings Bhd's price trend moved higher to close at RM1.40, giving a day-on-day gain of 11 sen, or 8.53 per cent.

Chartwise, DXN's daily price trend fell from its recent high of RM1.51 on January 17 to its intra-day low of RM1.16 on June 27, recording a total loss of 35 sen, or 23.18 per cent.

Its daily price staged a technical breakout of the upper resistance (B1:B2) of its intermediate-term downtrend channel (B1:B2 and B3:B4) yesterday and continued to stay above it.

Its daily fast MACD (moving average convergence divergence) stayed above its daily slow MACD yesterday. Both of its daily fast and slow MACDs continued to stay above their respective neutral reference lines.

DXN's daily price trend is likely to pause for a short and brief consolidation before resuming its prior technical rebound, likely to re-challenge its immediate overhead resistance (RM1.41 to RM1.55 levels).