OVERALL market sentiment continued to improve further on the local front last week, moving in step with the better performances on Wall Street and regional stock markets. The FTSE Bursa Malaysia KLCI (FBM KLCI) staged a follow-through rebound when it closed at 1,799.59 points last Friday.
The key index continued to provide the much needed momentum thrust in its follow-through technical rebound last week. It maintained its follow-through technical rebound throughout the week.
The benchmark rebounded from a low of 1,775.11 on Monday before hitting a high of 1,805.00 on Friday last week, giving the index an intra-week trading range of 29.89 points compared with a trading range of 20.35 points in the previous week.
The last three days of last week saw a rebound on Bursa Malaysia that sent the FBM KLCI to an even higher close at 1,799.59 points on Friday, giving the benchmark index a week-on-week gain of 13.84 points, or 0.78 per cent.
The FBM Small Cap Index gained 92.50 points, or 0.60 per cent, to close at 15,594.80 points while the FBM ACE Market Index added 25.92 points, or 0.47 per cent, to end the week at 5,529.49 points on Friday.
In New York, continuing technical rebounds on Wall Street sent share prices higher last week.
The benchmark Dow Jones Industrial Average closed higher at 15,399.65 points on Friday last week, having made a week-on-week profit of 162.54 points, or 1.07 per cent.
The tech stock-heavy Nasdaq Composite Index moved in sync with the general market sentiment when it staged a technical pullback last week. It closed broadly higher at 3,914.28 points, posting gains of 122.41 points or 3.23 per cent.
On the home front, main market counter, Konsortium Logistik Bhd (Konsortium) staged a technical rebound last week. Its daily price trend closed at RM1.49 last Friday, posting a week-on-week gain of 12 sen, or 8.76 per cent.
The following are the readings of some of Konsortium's technical indicators:Moving Averages:
Konsortium's daily price trend stayed above all its 10-, 20-, 30-, 50-, 100- and 200-day moving averages. Momentum Index:
Konsortium's short-term momentum index stayed above the support of its neutral reference line last week.On Balance Volume:
Its short-term On Balance Volume stayed above the support of its 10-day moving averages.Relative Strength Index (RSI):
Its 14-day RSI had since stayed above 50 per cent. Its technical reading stood at 68.88 per cent at the market close on Friday last week.Outlook
The FBM KLCI's counters continued to trend higher last week. Many second and third liners posted double-digit gains.
Konsortium was one of these counters with a week-on-week profit of 12 sen, or 8.76 per cent.
Chartwise, Konsortium's monthly price trend staged an overhead breakout of its intermediate-term overhead resistance. With that, it augurs well for its intermediate-to long-term perspectives.
Its weekly price trend staged a successful re-test of its intermediate-term overhead resistance (See Konsortium's weekly price chart - B1:B2) before rebounding upwards on Friday last week.
Konsortium's daily price trend staged a technical breakout of its intermediate-term downtrend (See Konsortium's daily price trend - C1:C2) on October 18.
The company's daily, weekly and monthly fast MACDs (moving average convergence divergence) continued to stay above its respective slow MACDs at the market close on Friday.
Its 14-day Relative Strength Index stood at 68.88 per cent. In the meantime, the company's 14-week and 14-month Relative Strength Index stood at 69.66 per cent and 66.12 per cent, respectively.
From the bullish technical breakout on its daily chart, Konsortium's daily price trend is set to stage a follow-through technical rebound, likely to re-challenge its immediate overhead resistance (RM1.55-RM1.75 levels) over its intermediate-term perspectives.The subject
expressed above is based purely on technical analysis and opinions of the writer. It is not a solicitation to buy or sell.