CONTINUING consolidations on Bursa Malaysia sent share prices moving sideways for the week ended on Friday. The FTSE Bursa Malaysia KLCI (FBM KLCI) staged a very mild rebound when it closed at 1,776.56 points last Friday.
The FBM KLCI's index-linked components provided the market's much need stability in launching a mild technical recovery. It managed to reverse the previous week's weak sentiment.
The FBM KLCI fell from an intra-week high of 1,781.84 on Monday and hit an intra-week low of 1,759.66 on Tuesday, giving the local bourse an intra-week trading range of 22.18 points as compared with the previous week's trading range of 26.14 points.
A mild technical recovery sent the FBM KLCI marginally higher to 1,776.56 points on Friday, giving it a week-on-week gain of 0.02 per cent.
The FTSE Bursa Malaysia Small Cap Index eased 0.54 per cent, to 15,300.28 while the FBM ACE Market Index lost 3.47 per cent to end at 5,377.60 on Friday.
In New York, a follow-through market consolidation on the Wall Street sent share prices to their lower close last week.
The Dow Jones Industrial Average closed at 15,072.58 points on Friday, with a loss of 1.22 per cent.
The tech stock-heavy Nasdaq Composite Index moved in counter-trend with the general market sentiment when it staged a technical rebound last week.
The Nasdaq closed higher at 3,807.75 points with a gain of 0.69 per cent.
Back home, Weida (M) Bhd staged a technical rebound last week. Its daily price trend closed at RM1.76 on Friday, with gains of 11 sen, or 6.67 per cent.
Following are the readings of some of its technical indicators:-Moving Averages:
Weida's daily price trend stayed above all of 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):
The company's short-term OBV stayed well 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 71.98 per cent on Friday.Outlook
Heavyweight index-linked counters staged technical rebounds to pare down the previous week's weak market sentiment. Weida was one of these counters with a week-on-week gain of 6.67 per cent.
Chartwise, Weida's monthly price trended above its intermediate-term uptrend, which augurs well for its mid- to long-term perspectives.
Its weekly price trend staged a successful breakout of its intermediate-term downtrend (See Weida's weekly price chart - B3:B4).
Earlier, Weida's weekly price trend staged a successful re-test of its intermediate-term downside support (B1:B2).
The company's daily price trend staged a technical breakout of its intermediate-term downtrend (See Weida's daily price trend - C1:C2) on Friday.
In the meantime, its daily, weekly and monthly fast MACDs (moving average convergence divergence) stayed above their respective slow MACDs at the end of trade on Friday.
Its 14-day Relative Strength Index (RSI) stood at 71.98 per cent. Its 14-week and 14-month RSI were at the 65.33 and 67.84 per cent, respectively.
Viewing the bullish technical breakout on its daily chart, Weida's daily price trend is set to stage a follow-through technical rebound, likely to re-challenge its immediate overhead resistance of between RM1.80 and RM2.00 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.