Technical rebound for ECS ICT likely

Writter : S.N.Lock
Sources : Business Times

SHARE prices on Bursa Malaysia continued to consolidate lower in tandem with the technical pullback on the Hong Kong Stock Exchange yesterday. Declining counters outpaced advancing counters by 354 to 351.

The FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) fell from its intra-day high of 1,526.18 to its intra-day low of 1,520.18 yesterday. It closed at 1,521.18 points, giving a day-on-day loss of 7.25 points, or 0.47 per cent. 
ECS ICT Bhd's price trended higher to close at RM1.60, giving a day-on-day gain of 10 sen, or 6.67 per cent.

Chartwise, ECS's daily price trend fell from its recent high of RM1.70 on April 8 to its intra-day low of RM1.48 on Wednesday, posting a total loss of 22 sen, or 12.94 per cent.
Its 60-minute price trend 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) continued to stay above its daily slow MACD yesterday. Both of its daily fast and slow MACDs continued to stay below their respective neutral reference lines.

ECS's 60-minute price trend is likely to stage an intermittent follow-through technical rebound, re-challenging its overhead resistance zone (RM1.62-RM1.75).

The subject expressed above is based on technical analysis and opinions of the writer. It is not a solicitation to buy or sell.

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