FOLLOW-through performances on the Wall Street and regional stock markets sent share prices on the FTSE Bursa Malaysia KLCI (FBM KLCI) upwards last week.
The FBM KLCI staged a technical breakout of its major psychological resistance of 1,800 when it closed at 1,801.83 points on Friday.
On the index, key heavyweights provided the market momentum while second and third liners stole the limelight for the four trading days under review.
The FBM KLCI rebounded from an intra-week low of 1,769.12 last Tuesday before hitting an intra-week high of 1,805.15 on Friday, giving the index an intra-week trading range of 36.03 points, compared with the previous week's trading range of 53.13 points.
The upbeat market momentum sent the FBM KLCI to a higher close at 1,801.83 points on Friday, allowing it to post gains of 1.75 per cent.
The FBM Small Cap Index gained 516.38 points, or 3.48 per cent, to close at 15,356.78 while the FBM ACE Market Index gained 265.56 points, or 5.21 per cent, to end trade at 5,359.95 on Friday.
In New York, share prices on Wall Street staged a mild follow-through rebound last week. The Dow closed marginally higher at 15,451.09 points last Friday, with gains of 75.03 points, or 0.49 per cent.
The tech stock-heavy Nasdaq Composite Index rebounded in tandem with the general market sentiment when it staged a follow-through technical rebound last week. The Nasdaq Composite Index closed higher at 3,774.73 points, with a week-on-week profit of 1.41 per cent.
Back home, Malaysia Marine and Heavy Engineering Holdings Bhd (MHB) staged a technical rebound last week. Its daily price trend closed at RM3.88 on Friday.
Following are the readings of some of its technical indicators:-Moving Averages: MHB's daily price trend stayed above all its 10-, 20-, 30- and 100-day moving averages while its weekly price trend stayed below its 50- and 200-day moving averages.
Momentum Index: Its short-term momentum index stayed above the support of its neutral reference line last week.
On Balance Volume (OBV): Its short-term OBV was above the support of its 10-day moving averages.
Relative Strength Index (RSI): Its 14-day RSI, meanwhile, stayed above 50. Its technical reading stood at 56.41 per cent on Friday.
Second and third liners took centre stage with some speculative plays. Select second and third liners managed to outperform their Main Market counterparts last week.
MHB was one of these counters with a gain of 4.58 per cent.
Chartwise, MHB's monthly price trend staged a technical breakout of its intermediate-term double-bottom downtrend. That augurs well for MHB's intermediate-to long-term perspectives.
Its weekly price trend staged a successful re-test of its intermediate-term downtrend (See MHB's weekly price chart - B1:B2) and had since rebounded off the support of its resistance-turned-support (B1:B2) last week.
MHB's daily price trend staged a technical breakout of its immediate overhead resistance (See MHB's daily price trend - C3:C4) on September 20. Earlier, MHB's daily price trend moved out of its intermediate-term downtrend (C1:C2).
Its daily and weekly fast MACDs (moving average convergence divergence) stayed above their respective slow MACDs last Friday while, its monthly fast MACD stayed below its monthly slow MACD.
Its 14-day Relative Strength Index (RSI) stood at 56.41 per cent. Its 14-week and 14-month RSI were at the 49.90 and 45.76 per cent, respectively.
Viewing the bullish technical breakout on its daily chart, MHB's daily price trend is poised to stage a follow-through technical rebound, likely to re-challenge its immediate overhead resistance (RM3.90-4.20 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.