Zelan in technical rebound

TRACKING regional stock markets, the FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) staged a technical rebound yesterday. Advancing counters edged out declining counters by 374 to 334.

The FBM KLCI rebounded from a day low of 1,554.58 to a day high of 1,561.91. It closed at 1,561.77, a day-on-day gain of 2.17 points, or 0.14 per cent.

Zelan Bhd moved higher to close at 39 sen, posting a day-on-day gain of 4.5 sen, or 13.04 per cent.

Chartwise, Zelan's daily price trend rebounded from its recent low of 32 sen on July 18 to its day high of 39.5 sen yesterday, recording a total gain of 7.5 sen, or 23.44 per cent.

Its 60-minute price 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) stayed above its daily slow MACD yesterday. Both its daily fast and slow MACDs continued to stay above their respective neutral reference lines.

Zelan's 60-minute price trend is likely to stage a follow-through technical rebound to its immediate overhead resistance (39.5- to 46-sen levels).