TECHNICAL pullbacks dominated the major part of last week’s trading activities on Bursa Malaysia.
The FTSE Bursa Malaysia KLCI (FBM KLCI) closed lower at 1,849.49 points last Friday.
A detailed analysis of the performances of FBM KLCI’s 30 index-linked components, showed that 16 out of the 30 heavyweight index-linked components posted week-on-week losses.
The FBM KLCI trended lower to close at 1,849.49 last Friday, staying marginally below its immediate downside support of 1,850 after hitting intra-week low of 1,836.50 points last Monday.
The FBM KLCI hit intra-week high of 1,856.16 before staging a technical consolidation to intra-week low of 1,836.50, giving an intra-week trading range of 19.66 points.
It closed at 1,849.49 points last Friday, giving a week-on-week loss of 6.15 points, or 0.33 per cent.
The FTSE Bursa Malaysia Small Cap Index lost 107.28 points, or 0.57 per cent, to 18,716.49 points while the FTSE Bursa Malaysia ACE Index gained 77.50 points, or 1.08 per cent, to 7,255.61 level last Friday.
In New York, the Dow Jones Industrial Average closed higher at 17,279.74 points last Friday, giving a week-on-week gain of 292.23 points, or 1.72 per cent.
The tech stock heavy Nasdaq Composite Index rebounded in tandem with the broader market sentiment last week.
The Nasdaq Composite Index closed marginally higher at 4,579.79 points last Friday, giving a week-on-week gain of 12.19 points, or 0.27 per cent.
V.S. Industry Bhd staged a technical rebound last Friday. Its daily price trended higher to close at RM2.28 last Friday, giving a week-on-week gain of 10 sen, or 4.59 per cent.
Following are the readings of some of its technical indicators:
Moving Averages: V.S. Industry’s daily price trend stayed above all its 10-, 20-, 30-, 50-, 100- and 200-day moving averages.
Momentum Index: Its short-term momentum index continued to stay above its neutral reference line last week.
On Balance Volume (OBV): Its short-term OBV stayed above the support of its 10-day moving averages.
Relative Strength Index (RSI): Its 14-day RSI had since stayed above the 50 level. Its technical reading stood at the 74.43 per cent level at the market close last Friday.
Outlook
Follow-through consolidations on the Hong Kong stock market continued to have a negative impact on the performance of Bursa Malaysia.
Sixteen out of the 30 heavyweight index-linked components of the FBM KLCI continued to come under light selling pressure.
Selective main board counters registered notable gains last Friday.
V.S. Industry was one of the counters with a day-on-day gain of 10 sen, or 4.59 per cent, last Friday.
Chartwise, V.S. Industry’s monthly price trend staged an overhead breakout of its intermediate-term double-bottom formation’s neckline last Friday.
V.S. Industry’s weekly price trend unfolded a technical breakout of the neckline (See its weekly price chart — B1:B2) of its double-bottom pattern formation at the market close last Friday.
V.S. Industry’s weekly price trend continued to stay above its neckline. Its daily price trend staged an overhead penetration of its short-term overhead resistance (See V.S. Industry’s daily price trend — C3:C4). Also, its daily price trend continued to trend above its intermediate-term uptrend support (C1:C2).
Its weekly and monthly fast MACDs (moving average convergence divergence) continued to stay above their respective slow MACDs at the market close last Friday.
Its 14-day Relative Strength Index (RSI) stood at the 74.43 per cent level last Friday. Its 14-week and 14-month RSI were at the 87.77 and 80.47 per cent levels respectively.
The overhead breakout of its short-term neckline (C3:C4) on its daily price chart augurs well for its near-term perspectives.
V.S. Industry’s daily price trend is poised to stage a re-challenge of its immediate overhead resistance zone (RM2.30 to RM2.55 levels).