FOLLOW-through rebounds dictated the overall market sentiment with the FTSE Bursa Malaysia KLCI (FBM KLCI) closing at 1,870.99 points yesterday.
A detailed analysis of FBM KLCI’s 30 index-linked components showed that the majority continued to stage follow-through technical rebounds. The index hit its intra-week high of 1,878.89 on Wednesday and continued to stay above its support of 1,860 at the market close yesterday.
The FBM KLCI’s trading band over the last five trading days contracted further to less than 20 points. It hit its intra-week low of 1,859.46 on Monday before rebounding to its intra-week high of 1,878.89 on Wednesday, giving an intra-week trading range of 19.43 points. Last week’s intra-week trading range was at 23.98 points.
Share prices on Bursa Malaysia continued to move to higher levels on two of the five trading days over the week. On balance, the FBM KLCI registered a week-on-week gain of 6.68 points, or 0.36 per cent. As it turned out, the index traced out an intra-week trading range of 19.43 points over the last five trading days.
The FBM KLCI’s 30 index-linked components registered a week-on-week gain of 6.68 points over the last five trading days. The FBM KLCI’s 30 index-linked components registered 16 gainers compared with 13 losers. The index opened marginally lower at 1,861.20 points on Monday before hitting its intra-week low of 1,859.46 on August 18. It ended the week higher at 1,870.99.
The FTSE Bursa Malaysia Small Cap Index lost 160.70 points, or 0.84 per cent, to close higher at 19,067.22 points while the FTSE Bursa Malaysia ACE Index also ended broadly lower at 7,073.61 points on Friday, giving a week-on-week loss of 209.13 points, or 2.87 per cent yesterday.
Following are the readings of some of its technical indicators:
q Moving Averages: The FBM KLCI continued to above its 10-, 20- 100- and 200-day moving averages at the market close yesterday. However, it continued to stay below its 30- and 50-day moving averages.
q Momentum Index: Its short-term momentum index had since stayed below the support of its neutral reference line at the market close on Friday.
q On Balance Volume (OBV): Its short-term OBV trend had since stayed below the support of its 10-day exponential moving averages.
q Relative Strength Index (RSI): Its 14-day RSI stood at the 50.87 per cent level at the market close yesterday.
Technical Outlook
The FBM KLCI hit its intra-week low of 1,859.46 on Monday, staging a re-test of this column’s envisaged support zone (1,834 to 1,860 levels).
Subsequent technical rebounds sent the FBM KLCI to its intra-week high of 1,878.89 on Wednesday, moving into the confines of this column’s envisaged resistance zone (1,868 to 1,894 levels).
From the performances of FBM KLCI’s 30 components, IHH Healthcare Bhd remained the week’s top-performing component with a year-to-date gain of RM1.09, or 28.24 per cent.
The key index hit its intra-week low of 1,859.46 on Monday before rebounding to its intra-week high of 1,878.89 on Wednesday. It closed at 1,870.99 points yesterday, giving a total week-on-week gain of 6.68 points, or 0.36 per cent.
Despite the week’s technical rebounds, the FBM KLCI’s weekly price chart continued to stay decisively below its intermediate-term uptrend support (See FBM KLCI’s weekly chart — A1:A2) for the fourth consecutive week.
Chartwise, the key index staged an overhead breakout of its intermediate-term downtrend (See daily chart — B7:B8) on Wednesday. However, it was stopped by its third resistance (B1:B2) on the same day.
The FBM KLCI’s weekly and monthly fast MACDs continued to stay below their respective slow MACDs. Its daily fast MACD continued to stay above its daily slow MACD.
This column commented that the FBM KLCI was likely to stage a follow-through rebound in its bid to stage a re-challenge of its intermediate-term downtrend (B7:B8) and it did. It continued to stay above its intermediate-term downtrend.
Next week, the FBM KLCI’s envisaged resistance zone is at the 1,874 to 1,897 levels while its immediate downside support is at the 1,840 to 1,866 levels.