SHARE prices on Bursa Malaysia rebounded in tandem with the simultaneous rebounds on the Wall Street and regional stock markets.
From the performances of the 30 index-linked components, 26 out of the 30 heavyweight index-linked components posted week-on-week gains, with the FTSE Bursa Malaysia KLCI (FBM KLCI) closing at 1,864.31 last Friday.
Last week, the FBM KLCI hit its intra-week low of 1,840.64 last Monday before staging a technical rebound to its intra-week high of 1,864.62 on Friday, giving an intra-week trading range of 23.98 points.
It closed at 1,864.31 points last Friday, giving a week-on-week gain of 24.44 points, or 1.33 per cent.
The FBM Small Cap Index gained 376.94 points, or two per cent, to the 19,227.92 level while the FBM ACE Index gained 217.35 points, or 3.08 per cent, to the 7,282.74 level last Friday.
Paramount Corporation Bhd staged a technical rebound last week. Its daily price trend rebounded to close at RM1.66 last Friday, recording a week-on-week gain of 12 sen, or 7.79 per cent.
Following are the readings of some of its technical indicators:
Moving Averages: Paramount’s daily price trend stayed above all its 10-, 20-, 30-, 50-, 100- and 200-day moving averages.
Momentum Index: Its short-term momentum index continued to stay above 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 had since stayed above the 50 level. Its technical reading stood at the 71.61 per cent level last Friday.
Majority of the index-linked counters rebounded in earnest with the rebounds on the Wall Street and regional stock markets last week.
Selective Main Market second and third liners registered notable week-on-week gains. Paramount is one of these counters.
Chartwise, Paramount’s monthly price trend staged a successful breakout of its intermediate-term downtrend for the week.
Its weekly price trend staged a technical breakout of its intermediate-term downtrend (See Paramount’s weekly price chart — B1:B2) last Friday.
Paramount’s weekly price trend continued to stay above its intermediate-term downside support (B1:B2).
Its daily price trend staged an overhead penetration of its intermediate-term downtrend (See Paramount’s daily price trend — C1:C2).
Its daily, weekly and monthly fast MACDs (moving average convergence divergence) continued to stay above their respective slow MACDs at the market close last Friday.
Its 14-day RSI stood at the 71.91 per cent level last Friday. Its 14-week and 14-month RSI were at the 65.36 and 59.49 per cent levels, respectively.
The technical breakout of its intermediate-term downtrend (daily chart — C1:C2) on its daily price chart augurs well for its near-term perspectives.
Paramount’s price trend is now poised to move towards its immediate overhead resistance zone (RM1.70 to RM1.90 levels).