THE FTSE Bursa Malaysia KLCI (FBM KLCI) failed in its bid to stay above its major psychological resistance of 1,800 last week. Instead, the benchmark FBM KLCI closed at 1.776.16 points esterday.
The index hit an intra-week low of 1,769.12 then it staged a follow-through rebound to an intra-week high of 1,805.15 on Friday, the week before, giving the index an intra-week trading range of 36.03 points.
The index's intra-week trading range was 53.13 points.
The key FBM KLCI, registered a week-on-week loss of 25.67 points over the last five trading days of last week. There were 25 losers and five gainers last week.
The FBM KLCI opened lower at 1,795.79 points on Monday the week before, hitting an intra-week low of 1774.16, on Thursday. It ended the week at 1,776.16.
Technical pullbacks on the Wall Street, and Hong Kong stock market dictated the market undertone on Bursa Malaysia.
The FBM KLCI failed in its bid to hang on above its major psychological support of 1,800.
The bourse registered a week-on-week loss of 25.67 points, or 1.42 per cent, to close at 1,776.16 yesterday.
The FBM Small Cap Index's registered a week-on-week gain of 0.17 per cent while the FBM ACE Market Index posted a week-on-week gain of 3.94 per cent last week.
The FBM KLCI staged a technical pullback from a high of 1,800.30 that it hit on Monday.
Share prices on Bursa Malaysia staged their technical pullbacks over the last five trading days. The FBM KLCI ended lower at 1,776.16 points on Friday, giving it a week-on-week loss of 25.67 points, or 1.42 per cent.
On the index, the FTSE Bursa Malaysia Small Cap Index added 26.79 points, or 0.17 per cent to close higher at 15,383.57 points.
Meanwhile the FTSE Bursa Malaysia ACE Index also closed broadly higher at 5,571.17 points yesterday, posting a gain of 3.94 per cent for the week ended on Friday.
Followings are the readings of some of the FBM KLCI's technical indicators:- Moving Averages:
The FBM KLCI stayed below its 20-, 30-, 50-, 100- and 200-day moving averages yesterday. It had since stayed below the support of its 10-day moving averages. Momentum Index:
Its short-term momentum index stayed above the support of its neutral reference line yesterday. On Balance Volume:
Its short-term OBV trend had since stayed below the support of its 10-day exponential moving averages. Relative Strength Index:
Its 14-day RSI stood at the 54.43 per cent level at the market close on Friday.Outlook
The local bourse hit an intra-week high of 1,800.30 on Monday, staying below the confines of this column's envisaged resistance zone (1,806 to 1,840 levels).
Subsequent technical pullbacks sent the FBM KLCI to an intra-week low of 1,774.16 on Thursday, moving within the confines of this column's envisaged support zone at between the 1,763 to 1,797 level.
UMW Holdings Bhd, UEM Sunrise Bhd, Malayan Banking Bhd and CIMB Group Holdings Bhd registered week-on-week gains of 5.74 per cent, 5.51 per cent, 4.27 per cent and 3.84 per cent respectively.
Tenaga Nasional was the week's top performer with a year-to-date gain of RM2.06, or 29.68 per cent.
The FBM KLCI's weekly price chart stayed within the confines of its long- and intermediate-term trendlines (See FBM KLCI's weekly chart - A1:A2 and A3:A4) yesterday.
Chartwise, the FBM KLCI staged a re-test of the support of its intermediate-term downtrend (See FBM KLCI's daily chart - B5:B6) over the week. It continued to stay above the support of its intermediate-term support (B3:B4).
The FBM KLCI's daily and monthly fast MACDs (oving Average Convergence-Divergence) stayed above their respective slow MACDs.
However, its weekly fast MACD was below its weekly slow MACD.
The FBM KLCI's 14-day RSI stayed at 54.43 per cent yesterday. Its 14-week and 14-month RSI hovered between 56.10 and 65.82 per cent.
Instead, the FBM KLCI is likely to face a mild technical rebound over the next few trading days. Overall market sentiment is likely to improve marginally.
Next week, the FBM KLCI's envisaged resistance zone is between 1,781 to 1,815 points while its immediate downside support is likely to be around 1,738 to 1,782 points.The subject
expressed above is based purely on technical analysis and opinions of the writer. It is not a solicitation to buy or sell.