LAST week, share prices on Bursa Malaysia tumbled in tandem with global stock markets. The benchmark Kuala Lumpur Composite Index (KLCI) breached its major psychological support of 1,000 points when it closed at 934.01 last Friday.

Overall sentiment deteriorated on investors' concern of the extent of the global credit crisis. Panic selling spread despite bold and swift action by governments worldwide.

The KLCI fell from its intra-week high of 1,014.61 last Monday to its intra-week low of 931.79 last Friday, giving an intra-week trading range of 82.82 points.

On the foreign front, the New York stock market suffered its biggest fall in recent years. The Dow Jones Industrial Average closed at 8,579.19 last Friday, a week-on-week loss of 1,746.19 points, or 16.91 per cent.

In Asia, the Tokyo and Hong Kong markets also slumped. The Nikkei 225 Index closed at 8,276.43 points last Friday, posting a week-on- week loss of 2,661.71 points, or 24.33 per cent. Hong Kong's Hang Seng Index closed at 14,796.87 last Friday, a week-on-week loss of 2,885.53 points, or 16.32 per cent.

On Bursa Malaysia, DiGi.com Bhd (DiGi) slipped into a brief technical pullback last week. Its daily price trend closed at RM22.30 last Friday, giving a week-on-week loss of 60 sen, or 2.62 per cent.

Here are the readings of some of its technical indicators:

Moving Averages: DiGi's daily price trend stayed below its 10-, 20-, 30-, 50-, 100- and 200-day moving averages.

Momentum Index: Its short-term momentum index staged an overhead breakout of the resistance of its neutral reference line last week.

On Balance Volume (OBV): Its short-term OBV trend continued to stay below 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 39.19 per cent level at the market close last Friday.

Outlook

Last Friday, DiGi's daily price trend closed at RM22.30, posting a total retracement loss of RM5.20, or 18.91 per cent, from its all- time high of RM27.50 on November 19 2007. Its performance had out- performed the KLCI's retracement loss of 592.90 points, or 38.89 per cent, from its all-time high of 1,524.69 on January 14.

Chartwise, DiGi's monthly price trend continued to trend way above its long-term uptrend support despite the recent retracements.

Its weekly price trend continued to trend above the support of its intermediate-term uptrend (See DiGi's weekly price trend C A1:A2). Recent sideways movements represented technical pullbacks to consolidate its recent gains.

DiGi's daily price trend breached the support of its immediate downside support trendline ( See DiGi's daily price chart C B3:B4) last Friday. It continued to trend below its short-term downtrend (B5:B6).

Its weekly and monthly fast MACDs (Moving Average Convergence Divergence) continued to stay below their respective slow MACDs last week. Its daily fast MACD continued to stay precariously above the support of its daily slow MACD.

DiGi's 14-day Relative Strength Index (RSI) stood at the 39.19 per cent level last Friday. Its 14-week and 14-month RSI were at the 41.85 and 58.03 per cent levels respectively.

Following its weekly and monthly fast MACDs trended below their respective slow MACDs, DiGi's daily price trend is attempting to hold on to its technical composure. Its immediate downside support hovers at the RM21.00 level.

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

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