Muhibbah's follow-through rebound set to unfold

ANOTHER sharp technical pullback on Wall Street sent shockwaves across the global stock markets yesterday. Regional stock markets, including Bursa Malaysia, suffered another tumble.

The FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) plunged to its intra-day low of 1,423.47 before recovery the major portion of its intra-day losses. On Bursa Malaysia, losers overwhelmed gainers by 828 to 159.

The FBM KLCI tumbled from its intra-day day high of 1,490.14 to its intra-day low of 1,423.47 yesterday. It closed at 1,472.14 points, recording a day-on-day loss of 24.85 points, or 1.66 per cent.

Muhibbah Engineering (M) Bhd price trend moved higher to close at RM1.17, posting a day-on-day gain of 10 sen, or 9.35 per cent.

Chartwise, Muhibbah's daily price trend fell from its intra-day high of RM1.85 on June 15 to its intra-day low of 99 sen yesterday, posting a total loss of 86 sen, or 46.49 per cent.

Its 60-minute price staged a technical breakout of its immediate 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 60-minute fast and slow MACDs continued to stay below their respective neutral reference lines.

Muhibbah's 60-minute price trend is likely to stage a follow-through rebound over the next few trading days.