The FBM Kuala Lumpur Composite Index (FBM KLCI) staged a follow-through rebound to its intra-week high of 1,805.15.
The index hit its intra-week low of 1,769.12 on Tuesday before staging a follow-through rebound yesterday, giving an intra-week trading range of 36.03 points.
Last week's intra-week trading range was 53.13 points.
The FBM KLCI's 30 index-linked components posted a week-on-week gain of 31.03 points over the last five trading days. Its components posted 23 gainers with five counters registering week-on-week losses.
The index opened higher at 1,777.41 points on Monday before hitting its intra-week high of 1,805.15 on Thursday. It ended the week at 1,801.83 yesterday.
Continuing technical rebounds on the Wall Street, Tokyo and Hong Kong stock markets provided the much needed momentum for the local stock market to rebound as well.
The benchmark index rebounded to close above its major psychological resistance of 1,800.
It recorded a week-on-week gain of 31.03 points, or 1.73 per cent.
The FBM Small Cap Index registered a week-on-week gain of 1.48 per cent while the FBM ACE Market Index posted a week-on-week gain of 5.21 per cent during the week.
The FBM KLCI staged a technical rebound from its intra-week low of 1,769.12 on Monday.
Following 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 yesterday.
* Momentum Index: Its short-term momentum index continued to stay above the support of its neutral reference line.
* On Balance Volume (OBV): Its short-term OBV trend continued to stay above the support of its 10-day exponential moving averages.
* Relative Strength Index (RSI): The 14-day RSI stood at the 67.76 per cent level yesterday.
The FBM KLCI continued to rebound in step with this column's envisaged technical rebound. It ended the week broadly higher.
Following the last two trading days' rebounds, the FBM KLCI is likely to exhibit its follow-through market momentum in its bid to stay decisively above its major psychological support of 1,800. While the heavyweight index-linked components will continue to shore up the FBM KLCI, the market actions will centre around second and lower liners.
Next week, the benchmark index's envisaged resistance zone is at the 1,806 to 1,840 levels while its immediate downside support is at the 1,763 to 1,797 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.