SHARE prices on Bursa Malaysia closed broadly lower for the week ended yesterday, moving in tandem with the consolidation on the New York and Asian stock markets.
The FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) registered a week-on-week loss of 17.49 points, or 1.10 per cent, for the week just ended. It continued to stay above the critical support of 1,570 points when it closed at 1,577.25 yesterday.
The benchmark index slipped into a mild consolidation on Monday. It opened at 1,595.14 before hitting a day high of 1,597.08. It closed at 1,588.58, a loss of 6.16 points, or 0.39 per cent.
Shares were broadly lower on Tuesday, in tandem with consolidation on regional markets. The FBM KLCI trended between a low of 1,574.52 and a high of 1,587.69. It closed at 1,578.10, giving a loss of 10.48 points, or 0.66 per cent.
The FBM KLCI staged a rebound when it moved in tandem with the Hong Kong and Tokyo stock markets on Wednesday. It trended between 1,576.37 and 1,580.67, before ending the day with a gain of 2.57 points, or 0.16 per cent.
Overall sentiment on Bursa Malaysia softened on Thursday. The FBM KLCI trended from its day high of 1,581.69 to its day low of 1,577.76. It ended at 1,579.84, a loss of 0.83 point, or 0.05 per cent, on the day.
The blue-chip barometer moved in rangebound activities yesterday. It trended between a low of 1,573.47and a high of 1,580.00 before closing at 1,577.2, a decline of 2.59 points, or 0.16 per cent.
The FBM KLCI posted a week-on-week loss of 17.49 points, or 1.10 per cent.
The following are the readings of some of its technical indicators:
Moving Averages: The FBM KLCI continued to stay above its 20-, 30-, 50-, 100- and 200-day moving averages. It closed below its 10-daymoving averages.
Momentum Index: Its short-term momentum index continued to trend above its neutral reference line at the market close yesterday.
On Balance Volume: Its short-term OBV trend stayed below the support of its 10-day exponential moving averages.
Relative Strength Index: Its 14-day RSI stood at the 54.68 per cent level yesterday.
Outlook
The FBM KLCI hit its week high of 1,597.08 on Monday, encountering resistance of this column's envisaged resistance zone (1,598 to 1,632 levels).
Subsequent technical consolidations sent the FBM KLCI to a week low of 1,573.47 yesterday, moving into the confines of this column's envisaged support zone (1,556 to 1,590 levels).
A review of the performances of the FBM KLCI's 30 components shows losers overwhelming gainers by 24 to 5. KLK, Genting, Petgas and AMMB's combined gains of RM1.06, 38 sen, 36 sen and 31 sen respectively accounted for the bulk of the FBM KLCI's loss for the week.
The FBM KLCI's weekly charts continued to stay below the support of its intermediate-term uptrend (see FBM KLCI's weekly chart A3:A4) during the week. It continued to stay above its downside support (A1:A2), moving closer to its intermediate-term uptrend (A3:A4).
Chartwise, the FBM KLCI will continue to stay above its intermediate-term uptrend support (see FBM KLCI's daily chart B1:B2) over the week.
The FBM KLCI's weekly and monthly fast MACDs (Moving Average Convergence Divergence indicators) continued to stay above their respective slow MACDs yesterday. Its daily fast MACD stayed below its daily slow MACD.
The FBM KLCI's 14-day RSI stayed at 54.68 per cent level yesterday. Its 14-week and 14-month RSI stayed at 60.85 and 73.07 levels respectively.
Last week, this column commented that the FBM KLCI would attempt to re-write its high. It did. The index hit an all-time high of 1,597.08 on Monday.
However, the benchmark index failed in its attempt to overcome its overhead resistance of 1,600. Instead, it consolidated its recent gains when it hit its intra-week low of 1,573.47 yesterday. Once again, heavyweight index-linked counters will continue to prop up the overall market sentiment.
Next week, the FBM KLCI's envisaged resistance zone is at the 1,581 to 1,615 levels while its immediate downside support is at the 1,539 to 1,573 levels.
The subject expressed above is based on technical analysis and opinions of the writer. It is not a solicitation to buy or sell.
By : S.N Lock
No comments:
Post a Comment