MALAYSIAN Bulk Carriers set a new all-time low of 80 sen amid follow-through selling. Technically, the stochastic and the 14-day relative strength index are on bearish extended-mode with the moving average convergence/divergence histogram continuing to expand negatively against the signal line, implying prices risk falling deeper into the red in the short-term. The immediate upside potential will be capped at the 14-day simple moving average (SMA) of 92.5 or the 21-day SMA of 95.5 sen.
RHB Capital fell to a low of RM6.07, the worst since July 2010 amid persistent profit-taking activity. Apparently, indicators are frail and they show no signs of turning up just yet despite reaching the very oversold area, suggesting this stock may stay in correction mode, with initial support resting at the RM5.95-RM6 range. A slip below the lower support of RM5.80 is likely to drag prices down to the RM5.70 or the RM5.55 level. Current resistance is anticipated at the RM6.47-RM6.50 band, followed by the 14-day simple moving average of RM6.78.
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