Brief consolidation for Coastal Contracts seen

THE FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) staged a technical rebound in tandem with the rebounds on the regional stock markets yesterday. Advancing counters outpaced declining counters by 472 to 266.

The FBM KLCI rebounded from its intra-day day low of 1,558.45 to its intra-day high of 1,564.95 yesterday. It closed at 1,562.59 points, giving a day-on-day gain of 6.95 points, or 0.45 per cent.

Coastal Contracts Bhd's price trend moved higher to close at RM2.47, giving a day-on-day gain of 9 sen, or 3.78 per cent.

Chartwise, Coastal's daily price trend fell from its recent high of RM2.75 on July 13 to its intra-day low of RM2.34 on July 19, recording a total loss of 41 sen, or 14.91 per cent.

Its 60-minute price fell below the support of its immediate downside support (B1:B2) yesterday and continued to stay below it.

Its 60-minute fast MACD (moving average convergence divergence) stayed above its daily slow MACD yesterday. Both of its daily fast and slow MACDs continued to stay below their respective neutral reference lines.

Coastal's 60-minute price trend is likely to pause for a short and brief consolidation before rebounding to its immediate overhead resistance (RM2.48 to RM2.65 levels).