BIMB likely to stage technical rebound

POSITIVE signal coming out of the US provided the necessary impetus for the local stock market to rebound in tandem with the regional stock markets yesterday.

The FTSE Bursa Malaysia Kuala Lumpur Composite Index rebounded in earnest. Advancing counters overwhelmed decli-ning counters by 553 to 225.

The FBM KLCI rebounded from its intra-day low of 1,549.43 to its intra-day high of 1,558.49 yesterday. It closed at 1,558.01, giving a day-on-day gain of 9.20 points, or 0.59 per cent.

BIMB Holdings Bhd's price trend moved higher to close at RM2.31, giving a day-on-day gain of 11 sen, or 5 per cent.

Chartwise, BIMB fell from its intra-day high of RM2.44 on July 22 to its intra-day low of RM2.19 last Friday, recording a total loss of 25 sen, or 10.25 per cent.

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

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

BIMB's 60-minute price trend is likely to stage a follow-through technical rebound to its immediate overhead resistance (RM2.32 to RM2.45 levels).