Follow-through rebound likely

SHARE prices on Bursa Malaysia continued to head south in tandem with the weak performances on regional stock markets on Wednesday. Its overall declining counters outpaced advancing counters by 468 to 216.

The Kuala Lumpur Composite Index (KLCI) fell from its intra-day high of 1,244.04 to intra-week low of 1,236.20 yesterday.

It closed at 1,241.75 points, giving a day-on-day loss of 7.30 points, or 0.58 per cent.

SILK Holdings Bhd staged a technical rebound yesterday. Its daily price trend closed at 46 sen, posting a day-on-day gain of 5.5 sen, or 13.58 per cent.

Chartwise, SILK Holdings' daily price trend rose from a low of 19 sen on September 18 to an intra-day high of 54.5 sen on October 14, recording a gain of 35.5 sen, or 186.84 per cent.

Its hourly price trend staged a decisive breach of the upper resistance (B1:B2) of its short-term downtrend channel (B1:B2 and B3:B4) yesterday and had since continued to stay above it.

Its hourly fast MACD (moving average convergence divergence) continued to stay above its hourly slow MACD yesterday. Both its hourly fast and slow MACDs continued to stay above their respective neutral reference lines.

SILK Holdings' hourly price trend is likely to stage a follow-through rebound in its bid to stage a re-challenge of its previous resistance high.