LAST week, share prices on Bursa Malaysia rebounded in earnest from the technical rebounds on the Wall Street and regional stock markets last week.
The FBM KLCI's heavyweight index-linked components played pivotal roles in lifting them out of their recent doldrums last week.
The Key index rebounded over the first four trading days last week before consolidating its recent gains on Friday.
On that note, the FBM KLCI rebounded from its intra-week low of 1,726.27 last Monday before hitting an intra-week high of 1,779.40 last Thursday, giving an intra-week trading range of 53.13 points as compared with its previous week's trading range of 25.37 points.
The FBM KLCI closed broadly higher at 1,770.80 points last Friday, posting a week-on-week gain of 47.00 points, or 2.73 per cent.
The FTSE Bursa Malaysia Small Cap Index gained 375.52 points, or 2.60 per cent, higher to 14,840.408 level while the FTSE Bursa Malaysia ACE Market Index gained 118.54 points, or 2.38 per cent, to 5,094.39 level last Friday.
On the key index, Focal Aims Holdings Bhd (Focal) staged a technical rebound last week. Its daily price trend closed at 91 sen last Friday, recording a week-on-week gain of 24 sen, or 35.82 per cent.
The following are the readings of some of Focal Aim's technical indicators:-Moving Averages:
Focal'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 stayed above the support of 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 stayed above the 50 level. Its technical reading stood at 71.46 per cent on Friday.Outlook
Last week, second and third liners emerged with some speculative plays. Select second and third liners managed to outperform some of their Main Market counters last week. Focal Aim was one of these counters with a week-on-week gain of 24-sen, or 35.82 per cent.
Chartwise, Focal Aim's monthly price trend staged a technical breakout of the neckline of its intermediate-term double-bottom pattern formation. With that, it augurs well for its intermediate- to long-term perspectives.
Its weekly price trend staged a successful re-test of the neckline (See Focal Aim's weekly price chart - B1:B2) of its intermediate-term double-bottom pattern formation last week. It stayed above its intermediate-term neckline (B1:B2) on Friday.
Focal's daily price trend staged a technical breakout of its intermediate-term downtrend resistance (See Focal's daily price trend - C1:C2) on Thursday.
Thereafter, Focal Aim's daily price trend moved on to stage a decisive breach of the neckline (B3:B4) of its double-bottom pattern formation.
Its daily and monthly fast MACDs (moving average convergence divergence) continued to stay above their respective slow MACDs last Friday. Its weekly fast MACD stayed below its weekly slow MACD.
Its 14-day Relative Strength Index (RSI) stood at 71.46 per cent. Its 14-week and 14-month RSI were at the 69.87 per cent and 75.11 per cent levels respectively.
Viewing the bullish technical breakout on its daily chart, Focal's daily price trend is poised to stage a follow-through technical rebound, likely to re-challenge its immediate overhead resistance (95 sen-RM1.20 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.