Resistance zone seen at 1,521-1,555 levels
THE FBM Kuala Lumpur Composite Index (FBM KLCI) staged a technical rebound for the week ended on February 18 after last week's technical pullback. It stayed above its critical support f 1,500 when it closed at 1,517.56 points yesterday.
The FBM KLCI staged a mild technical rebound on Monday. The FBM KLCI opened at 1,497.89 points before hitting its intra-day high of 1,513.29. It closed at 1,505.33 points, giving a day-on-day gain of 10.81 points, or 0.72 per cent.
Share prices on Bursa Malaysia staged a mild follow-through rebound on Wednesday. The FBM KLCI trended between its intra-day high of 1,506.31 and its intra-day low of 1,495.43. It closed at 1,506.30 points, giving a day-on-day gain of 0.97 point, or 0.06 per cent.
The FBM KLCI consolidated its two-day gains on Thursday. It trended from its intra-day high of 1,512.85 to its intra-day low of 1,506.40. It closed at 1,508.56 points, giving a day-on-day gain of 2.26 points, or 0.15 per cent.
The FBM KLCI rebounded in tandem with the regional stock markets yesterday. It trended from its intra-day high of 1,521.15 to its intra-day low of 1,508.53. It ended the week at 1,517.56 points, giving a day-on-day gain of 9 points, or 0.60 per cent.
The Dow Jones Industrial Average (DJIA) trended marginally higher over the last four trading days. The DJIA closed at 12,318.14 points on Thursday, giving a four-day gain of 44.88 points, or 0.37 per cent.
The Nasdaq Composite Index closed at 2,831.58 points on Thursday, recording a four-day gain of 22.14 points.
Tokyo stock market managed to stage a technical rebound over the last five trading days. The Nikkei 225 Index closed at 10,842.80 points yesterday, giving a week-on-week gain of 237.15 points, or 2.24 per cent.
Hong Kong stock market rebounded during the week, recovering part of last week's losses. The Hang Seng Industrial Index closed at 23,595.24 points, recording a week-on-week gain of 766.32 points, or 3.36 per cent.
The FBM KLCI rebounded over the week to close at 1,517.56 points yesterday, posting a week-on-week gain of 23.04 points, or 1.54 per cent.
The FTSE Bursa Malaysia Small Cap Index added 0.96 point, or 0.01 per cent, to close at 13,117.69 points while the FTSE Bursa Malaysia ACE Index lost 50.57 points, or 1.12 per cent, to 4,455.59 level yesterday.
Following are the readings of some of its technical indicators:-
Moving Averages: The FBM KLCI had since stayed below its 10-, 20-, 30- and 50-day moving averages. It continued to stay above its 100- and 200-day moving averages.
Momentum Index: Its short-term momentum index continued to stay below its neutral reference line at the market close yesterday.
On Balance Volume (OBV): Its short-term OBV trend had since stayed above the support of its 10-day exponential moving averages.
Relative Strength Index (RSI): Its 14-day RSI stood at the 45.65 per cent level yesterday.
Outlook
The FBM KLCI's technical pullback to its intra-week low of 1,494.13 on Monday, staged a successful re-test of this column's envisaged support zone (1,456 to 1,490 levels).
Subsequent technical rebounds hit its intra-week high of 1,321.15 yesterday, moving into the confines of this column's envisaged resistance zone (1,498 to 1,532 points)
A quick glance at the performances of the FBM KLCI's 30 components, its gainers overwhelmed its losers by 25 to 4. Petdag, DiGi, PPB and RHBCap's combined gains of 70 sen, 50 sen, 38 sen and 32 sen respectively accounted for the major bulk of FBM KLCI's week-on-week gain of 23.04 points, or 1.54 per cent. PChem replaced Telekom Malaysia Bhd as the top performer, to date, with a total year-to-date gain of 71-sen, or 12.86 per cent.
The FBM KLCI's weekly charts staged a re-test of the support (See FBM KLCI's weekly chart - A5:A6) of its intermediate-term uptrend. Also, it continued to stay firmly above the support of its intermediate-term support (A3:A4).
Chartwise, the FBM KLCI's daily trend had since recovered and stayed above its immediate support (See FBM KLCI's daily chart - B3:B4). The FBM KLCI closed at 1,517.56 points yesterday.
The FBM KLCI's daily and weekly fast MACDs (moving average convergence divergence) continued to stay below their respective slow MACDs yesterday. Its monthly fast MACD continued to stay above its monthly slow MACD.
The FBM KLCI's 14-day RSI stayed at 45.65 per cent level yesterday. Its 14-week and 14-month RSI stayed at 57.75 and 72.81 per cent levels respectively.
Last week, this column commented on the technical pullbacks on February 10 and 11. It was envisaged that the FBM KLCI was finding critical support at current levels before staging a turnaround. The FBM KLCI just did that. The FBM KLCI traced out four consecutive trading days of gains.
Key heavyweight index-linked counters are likely to pave the way for the rebounds. It is once again led by index-linked blue chips in its turnaround.
Next week, the FBM KLCI's envisaged resistance zone is at the 1,521 to 1,555 levels while its immediate downside support is at the 1,479 to 1,513 levels.
The subject expressed above is based on technical analysis and opinion of the writer. It is not a solicitation to buy or sell
The FBM KLCI staged a mild technical rebound on Monday. The FBM KLCI opened at 1,497.89 points before hitting its intra-day high of 1,513.29. It closed at 1,505.33 points, giving a day-on-day gain of 10.81 points, or 0.72 per cent.
The FBM KLCI consolidated its two-day gains on Thursday. It trended from its intra-day high of 1,512.85 to its intra-day low of 1,506.40. It closed at 1,508.56 points, giving a day-on-day gain of 2.26 points, or 0.15 per cent.
The FBM KLCI rebounded in tandem with the regional stock markets yesterday. It trended from its intra-day high of 1,521.15 to its intra-day low of 1,508.53. It ended the week at 1,517.56 points, giving a day-on-day gain of 9 points, or 0.60 per cent.
The Dow Jones Industrial Average (DJIA) trended marginally higher over the last four trading days. The DJIA closed at 12,318.14 points on Thursday, giving a four-day gain of 44.88 points, or 0.37 per cent.
The Nasdaq Composite Index closed at 2,831.58 points on Thursday, recording a four-day gain of 22.14 points.
Tokyo stock market managed to stage a technical rebound over the last five trading days. The Nikkei 225 Index closed at 10,842.80 points yesterday, giving a week-on-week gain of 237.15 points, or 2.24 per cent.
Hong Kong stock market rebounded during the week, recovering part of last week's losses. The Hang Seng Industrial Index closed at 23,595.24 points, recording a week-on-week gain of 766.32 points, or 3.36 per cent.
The FBM KLCI rebounded over the week to close at 1,517.56 points yesterday, posting a week-on-week gain of 23.04 points, or 1.54 per cent.
The FTSE Bursa Malaysia Small Cap Index added 0.96 point, or 0.01 per cent, to close at 13,117.69 points while the FTSE Bursa Malaysia ACE Index lost 50.57 points, or 1.12 per cent, to 4,455.59 level yesterday.
Moving Averages: The FBM KLCI had since stayed below its 10-, 20-, 30- and 50-day moving averages. It continued to stay above its 100- and 200-day moving averages.
Momentum Index: Its short-term momentum index continued to stay below its neutral reference line at the market close yesterday.
On Balance Volume (OBV): Its short-term OBV trend had since stayed above the support of its 10-day exponential moving averages.
Relative Strength Index (RSI): Its 14-day RSI stood at the 45.65 per cent level yesterday.
Outlook
The FBM KLCI's technical pullback to its intra-week low of 1,494.13 on Monday, staged a successful re-test of this column's envisaged support zone (1,456 to 1,490 levels).
Subsequent technical rebounds hit its intra-week high of 1,321.15 yesterday, moving into the confines of this column's envisaged resistance zone (1,498 to 1,532 points)
A quick glance at the performances of the FBM KLCI's 30 components, its gainers overwhelmed its losers by 25 to 4. Petdag, DiGi, PPB and RHBCap's combined gains of 70 sen, 50 sen, 38 sen and 32 sen respectively accounted for the major bulk of FBM KLCI's week-on-week gain of 23.04 points, or 1.54 per cent. PChem replaced Telekom Malaysia Bhd as the top performer, to date, with a total year-to-date gain of 71-sen, or 12.86 per cent.
The FBM KLCI's weekly charts staged a re-test of the support (See FBM KLCI's weekly chart - A5:A6) of its intermediate-term uptrend. Also, it continued to stay firmly above the support of its intermediate-term support (A3:A4).
Chartwise, the FBM KLCI's daily trend had since recovered and stayed above its immediate support (See FBM KLCI's daily chart - B3:B4). The FBM KLCI closed at 1,517.56 points yesterday.
The FBM KLCI's daily and weekly fast MACDs (moving average convergence divergence) continued to stay below their respective slow MACDs yesterday. Its monthly fast MACD continued to stay above its monthly slow MACD.
The FBM KLCI's 14-day RSI stayed at 45.65 per cent level yesterday. Its 14-week and 14-month RSI stayed at 57.75 and 72.81 per cent levels respectively.
Last week, this column commented on the technical pullbacks on February 10 and 11. It was envisaged that the FBM KLCI was finding critical support at current levels before staging a turnaround. The FBM KLCI just did that. The FBM KLCI traced out four consecutive trading days of gains.
Key heavyweight index-linked counters are likely to pave the way for the rebounds. It is once again led by index-linked blue chips in its turnaround.
Next week, the FBM KLCI's envisaged resistance zone is at the 1,521 to 1,555 levels while its immediate downside support is at the 1,479 to 1,513 levels.
The subject expressed above is based on technical analysis and opinion of the writer. It is not a solicitation to buy or sell
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