TECHNICAL rebounds on Friday helped to recoup all losses on the first three trading days this week.
The FTSE Bursa Malaysia KLCI (FBM KLCI) registered a week-on-week gain of 0.14 per cent to close at 1,723.14 points on Friday.
The FBM KLCI staged a re-test of its support of 1,700 over the week before closing at 1,723.14 points on Friday. It had opened lower at 1,713.97 points on Monday.
It hit its intra-week high of 1,723.14 on Friday and intra-week low of 1,695.66 on Thursday, giving it an intra-week trading range of 27.48 points. Last week’s intra-week trading range was at 23.70 points.
On balance, the FBM KLCI registered a week-on-week gain of 2.38 points, or 0.14 per cent, with 17 gainers out of its 30 index-linked components.
Share prices on the Wall Street closed higher over the last four trading days. The Dow Jones Industrial Index continued to stay below its major psychological support of 18,000 over the week. It closed at 17,745.98 points on Thursday, giving a week-to-date gain of 177.45 points, or 1.01 per cent.
The tech stock heavy Nasdaq Composite Index moved in tandem with its broader market. The Nasdaq Composite Index closed marginally higher at 5,128.79 points on Thursday, giving a week-to-date gain of 40.16 points, or 0.79 per cent.
Share prices on the Tokyo stock market registered minor gains over the week. The Nikkei 225 Index continued to stay above its support of 20,000. It closed marginally higher at 20,585.24 points on Friday, giving a week-on-week gain of 40.71 points, or 0.20 per cent.
The Hong Kong stock market consolidated further over the last five trading days. The Hang Seng Industrial Index ended the week lower at 24,636.28 points, giving a week-on-week loss of 492.23 points, or 1.96 per cent.
Share prices on Bursa Malaysia registered minor gains on the backdrop of mixed performances on the regional stock markets.
The FTSE Bursa Malaysia Small Cap Index lost 148.11 points, or 0.91 per cent, to close at 16,071.31 points while the FTSE Bursa Malaysia ACE Index ended lower at 6,272.38 points on Friday, giving a week-on-week loss of 284.32 points, or 4.34 per cent.
Followings are the readings of some of its technical indicators:
Moving Averages: The FBM KLCI stayed above the support of its 10-, 20- and 30-day moving averages. It continued to stay below its 50-, 100- and 200-day moving averages at the market close on Friday.
Momentum Index: Its short-term momentum index had since stayed above the support of its neutral reference line at the market close on Friday.
On Balance Volume: Its short-term OBV trend stayed above the support of its 10-day exponential moving averages.
Relative Strength Index: Its 14-day RSI stood at the 51.33 per cent level at the market close on Thursday.
OUTLOOK:
The FBM KLCI hit its intra-week low of 1,695.66 on Thursday, staging a successful re-test of this column’s envisaged support zone (1,682 to 1,716 levels).
Subsequent technical rebounds sent the FBM KLCI to its intra-week high of 1,723.14 on Friday, failing in its bid to re-challenge this column’s envisaged resistance zone (1,724 to 1,758 levels).
From the performances of the FBM KLCI’s 30 components, IHH Healthcare Bhd was the week’s top performing component after closing at RM6.01, registering a year-to-date gain of RM1.19, or 24.69 per cent.
The FBM KLCI’s weekly price chart staged yet another successful re-test of its immediate downside support (See FBM KLCI’s weekly chart –A5:A6) last week. It continued to close within the confines of its two parallel trendlines (A3:A4 and A5:A6) at the market close on July 31.
Chartwise, the FBM KLCI’s daily price chart continued to stay above its intermediate-term downside support (See FBM KLCI’s daily chart –B5:B6) over the week. It continued to stay clear of its immediate downside support (B5:B6) at the market close.
The FBM KLCI's daily fast MACD continued to stay above its daily slow MACD. Its weekly and monthly fast MACDs continued to stay below their respective slow MACDs.
The FBM KLCI continued to stay above its intermediate-term downside support (B5:B6) over the last five trading days and continued to stay above it at the market close on Friday.
The FBM KLCI is likely to stage another re-test of its immediate downside support of 1,700. The top 10 heavyweight index-linked counters are likely to consolidate their recent gains before resuming their rebounds at a later date.
Next week, the FBM KLCI’s envisaged resistance zone is at the 1,727 to 1,760 levels while its immediate downside support is at the 1,685 to 1,719 levels.