07 May 2012

Technical Analysis: Analyst S.N. Lock says that Benalec stock price trend is poised to move towards RM1.30-RM1.47 intermediate-term resistance zone

(BENALEC opening stock price today (7.5.2012) was RM 1.23)

BURSA Malaysia bucked the weak trends on the Tokyo and New York stock markets last week.

The market's main indicator, the FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI), stayed above the key 1,580-point support level when it closed at 1,591.04 last Friday.

The index hit a week low of 1,568.58 last Monday before rebounding to a week high of 1,591.04 on Friday, a range of 22.46 points. The FBM KLCI closed higher on all days of the four-day trading week. It closed at its week-high of 1,591.04 on Friday, up 23.24 points, or 1.48 per cent.

On the foreign front, New York's Dow Jones Industrial Index was down 1.4 per cent and the S&P 500 sank 2.4 per cent for the week.

In Tokyo, the benchmark Nikkei 225 index lost 1.48 per cent in the two-day trading week.

Among other indices, the FTSE Bursa Malaysia Small Cap Index gained 152.14 points, or 1.24 per cent, to 12,466.25 while the FTSE Bursa Malaysia ACE Market Index added 40.11 points, or 0.88 per cent, to 4,575.44.

On Bursa Malaysia, a notable gainer last week was Benalec Holdings Bhd, which posted an increase of 12 sen, or 10.81 per cent, to RM1.23.

Benalec is principally an investment holding company and its subsidiaries specialise in civil engineering projects as well as marine construction services on both the local and regional fronts.

The following are the readings of some of its technical indicators:

Moving Averages: Benalec's daily price trend has since stayed above its 10-, 20-, 30- and 50-day moving averages. However, it continued to stay below its longer term 100- and 200-day moving averages.

Momentum Index: Its short-term momentum index stayed above the support of its neutral reference line last week.

On Balance Volume (OBV): Its short-term OBV stayed above the support of its 10-day moving averages.

Relative Strength Index (RSI): Its 14-day RSI stayed above the 50 level. Its technical reading stood at the 65.85 per cent level at the market close last Friday.


While, the FBM KLCI's 30 component stocks displayed underlying resilience, select second and lower liners remained the trading focus during the week. Benalec was one of these counters.

Chartwise, Benalec's monthly price trend rebounded from the support of its intermediate-term uptrend.

Its weekly price trend staged a decisive breach of its intermediate-term downtrend (see Benalec's weekly price chart B1:B2) last week.

Benalec's daily price trend staged a technical breakout of its intermediate-term downtrend (see Benalec's daily price trend C1:C2) last Friday.

Its daily fast MACD (Moving Average Convergence Divergence indicator) continued to stay above its daily slow MACD at the market close last Friday. However, its weekly and monthly fast MACDs continued to stay below their respective slow MACDs.

Its 14-day Relative Strength Index (RSI) stood at the 65.85 per cent level last Friday. Its 14-week and 14-month RSI were at the 47.36 and 47.40 levels respectively.

Following the technical rebound on its daily and weekly price charts (C1:C2 and B1:B2) on Friday, Benalec's price trend is poised to move towards its intermediate-term resistance zone (RM1.30-RM1.47 levels).

Source: www.btimes.com.my

Click here to view analyst S.N.Lock's previous prediction on Can-One Berhad and its results

Click here to view all latest posts related to technical analysis


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