IN LINE with technical rebound on regional bourses, share prices on Bursa Malaysia rebounded and continued to ride on their performance over the last five trading days.
The FTSE Bursa Malaysia KLCI (FBM KLCI) opened higher at 1,778.03 points on Monday. It hit its intra-week low of 1,768.64 on Thursday before reaching its intra-week high of 1,788.99 yesterday, with an intra-week trading range of 20.35 points.
The 30 index-linked components saw 17 counters gain, while 10 registered week-on-week losses.
The technical rebound on the Wall Street, Tokyo and Hong Kong stock markets provided the much-needed impetus for Bursa Malaysia to advance in tandem.
The FBM KLCI successfully overcame its immediate overhead resistance of 1,780, registering a week-on-week gain of 9.19 points, or 0.52 per cent yesterday.
The FBM Small Cap Index gained 202.02 points, or 1.32 per cent, to close higher at 15,502.30 points, while the FBM ACE Index closed broadly higher at 5,503.57 points, giving a week-on-week gain of 125.97 points, or 2.34 per cent.
Followings are the readings of some of its technical indicators: Moving Averages:
The FBM KLCI continued to stay below its 10-, 20-, 30-, 50-, 100- and 200-day moving averages. Momentum Index:
Its short-term momentum index stayed below the support of its neutral reference line. On Balance Volume:
Its short-term OBV trend contiued to stay below the support of its 10-day exponential moving averages. Relative Strength Index:
Its 14-day RSI stood at the 59.02 per cent level.Outlook
The FBM KLCI hit its intra-week low of 1,768.64 on Thursday, staging a re-test of the confines of this column's envisaged support zone (1,738-1,782 levels).
The subsequent technical rebound sent the FBM KLCI to its intra-week high of 1,788.99 yesterday, moving within the confines of this column's envisaged resistance zone (1,781- 1,815 levels).
The FBM KLCI's 30-index components recorded 17 gainers compared with 10 losers.
Petronas Chemicals Group Bhd, UMW Holdings Bhd, Public Bank Bhd and Petronas Gas Bhd registered week-on-week gains of 3.37 per cent, 2.38 per cent, 1.68 per cent and 1.35 per cent, respectively.
Tenaga Nasional Bhd remained the week's top performing component with a year-to-date gain of RM2.11, or 30.40 per cent.
The FBM KLCI's weekly price chart continued to stay below its intermediate-term downtrend (See FBM KLCI's weekly chart - A3:A4) yesterday. It continued to stay above its long-term uptrend support (A1:A2).
Chartwise, the FBM KLCI staged a successful re-test of its intermediate-term downtrend support (See FBM KLCI's daily chart - B5:B6) on Thursday and continued to stay above it (B3:B4).
The daily and weekly fast MACDs continued to stay below their respective slow MACDs. However, its monthly fast MACD remained below its monthly slow MACD.
The 14-day RSI stayed at the 59.02 per cent level. Its 14-week and 14-month RSI stayed at the 57.86 and 66.55 per cent levels, respectively, yesterday.
Taking cue from the week's follow-through technical rebound, the FBM KLCI is likely to remain firm for another week, trading rangebound around volatility of 25 points. Second- and third-liners are likely to resume their rebound, while heavyweight index-counters will continue to provide the momentum thrust.
Next week, the FBM KLCI's envisaged resistance zone will be at the 1,790-1,824 levels while its immediate downside support will be at the 1,748-1,782 levels.The subject
expressed above is based purely on technical analysis and opinions of the writer. It is not a solicitation to buy or sell.