TECHNICAL rebounds over the last four trading days reversed Bursa Malaysia’s faltering trend before rebounding onto higher levels.
The FTSE Bursa Malaysia KLCI (FBM KLCI) staged a trend reversal from its intra-day low of 1,722.67 on Monday to its intra-week high of 1,765.51 points on Friday, posting another week-to-week gain of 48.45 points, or 2.82 per cent.
Judging from the performances of the heavyweight index-linked blue-chips, 22 out of the 30 heavyweight index-linked components posted week-on-week gains while seven counters registered losses.
The FBM KLCI hit its intra-week low of 1,722.67 last Monday before rebounding to its intra-week high of 1,765.51 on Friday, recording an intra-week trading range of 42.84 points.
It closed at 1,764.44 points last Friday, posting a week-on-week gain of 48.45 points, or 2.82 per cent.
The FTSE Bursa Malaysia Small Cap Index traced out another round of rebound gain of 231.75 points, or 1.56 per cent, to 15,078.56 level while the FTSE Bursa Malaysia ACE Market Index gained 75.23 points, or 1.34 per cent, to 5,678.56 level last Friday.
Share prices on the New York Stock Exchange unfolded another round of technical rebound last week. The Dow Jones Averages closed at 18,053.71 last Friday, giving a week-on-week gain of 248.91 points, or 1.40 per cent.
The tech stock heavy Nasdaq Composite Index moved in tandem with the broader market sentiment. The Nasdaq Composite Index closed higher at 4,806.86 last Friday, giving a week-on-week gain of 41.48 points, or 0.87 per cent.
The Hong Kong stock market resumed prior technical rebound last week. The Hang Seng Industrial Index closed at 23,349.34 last Friday, giving a week-on-week gain of 232.71 points, or 1.01 per cent.
The Tokyo stock market staged follow-through rebound in tandem with the performance on the Wall Street last week. The Nikkei 225 Index closed higher at 17,818.96, giving a week-on-week gain of 197.56 points, or 1.12 per cent.
Back home, Poh Huat Resources Holdings Bhd staged a technical rebound last week. Its daily price trend rebounded to close at RM1.41 last Friday.
Following are the readings of some of Poh Huat’s technical indicators:
Moving Averages: Its daily price trend stayed above all its 10-, 20-, 30-, 50-, 100- and 50-day moving averages.
Momentum Index: Its short-term momentum index had since stayed 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 65.14 per cent level at the market close last Friday.
Outlook
The FBM KLCI resumed prior technical rebound in tandem with the performances on the Wall Street and regional stock markets last week.
Twenty out of the 30 heavyweight index-linked components of the FBM KLCI unfolded their technical rebounds last week.
Selective second and third liners emerged with week-on-week gains. Poh Huat is one of these counters with a week-on-week gain of 10 sen, or 7.63 per cent.
Chartwise, Poh Huat’s monthly price trend staged an overhead breakout of its intermediate-term overhead resistance.
It continued to trend above its intermediate-term resistance-turned-support at the market close last week.
Its weekly price trend continued to trend within the confines of its two intermediate-term trendlines (See Poh Huat’s weekly price chart — B1:B2 and B3:B4) last Friday. Poh Huat’s weekly price trended on the verge of staging a technical breakout of its intermediate-term downtrend (B1:B2).
Its daily price trend staged a technical rebound of its intermediate-term downtrend (See Poh Huat’s daily price trend — C1:C2) on Friday.
Its daily fast MACD (moving average convergence divergence) continued to stay above daily slow MACD last Friday. However, its weekly fast MACD continued to stay below its weekly slow MACD.
Its 14-day Relative Strength Index (RSI) stood at the 65.14 per cent level last Friday.
Its 14-week and 14-month RSI were at the 60.66 and 77.94 per cent levels, respectively.
The technical breakout of its intermediate-term downtrend (C1:C2) on its daily price chart augurs well for its near-term perspectives.
Poh Huat’s price trend is now poised to move towards immediate overhead resistance zone of RM1.45 to RM1.60 levels.