MAJOR market weaknesses on the Wall Street and regional stock markets set the undertone of consolidation on Bursa Malaysia last week. Continuing consolidations on the local bourse sent share prices lower for the fourth consecutive week, with the FTSE Bursa Malaysia KLCI (FBM KLCI) closing 10.44 points, or 0.58 per cent, lower at 1,802.57 points last Friday. The week's trading range was at 18.37 points, compared with the previous week's range of 26.17 points. Last week, the FBM KLCI staged another follow-through technical pullback to its intra-week low of 1,798.57 points. It breached its immediate downside support of 1,800 points before staging a mild rebound to close at 1,802.57 points on Friday. It registered a total loss of 18.19 points over the four trading days as compared to a gain of 7.75 points last Tuesday, giving it a total week-on-week loss of 10.44 points. There were 17 losers and 10 gainers on the index last week. On the scoreboard, the FBM Small Cap Index lost 238.70 points, or 1.40 per cent, to 15,834.71 while the FBM ACE Market Index dropped 94.53 points, or 1.55 per cent, to close at 5,937.51 points last Friday. Meanwhile in New York , share prices on the Wall Street staged a meaningful technical pullback last week. The Dow Jones Industrial Average had since stayed below its major psychological support of 16,000. It closed broadly lower at 15,879.11 points last Friday, with a week-on-week loss of 579.45 points, or 3.52 per cent. The tech stock-heavy Nasdaq Composite Index moved in tandem with its general market trend when it ended lower last week. it closed lower at 4,128.17 points last Friday, with a week-on-week loss of 69.41 points, or 1.65 per cent. On the local bourse, Malaysian Resources Corporation Bhd (MRCB) staged a technical rebound last week. Its daily price trend rebounded to close at RM1.55 on Friday, with a week-on-week gain of 17 sen , or 12.32 per cent. Following are the readings of some of the MRCB's technical indicators:- Moving Averages: MRCB's daily price trend had since stayed above its 10-, 20-, 30-, 50-, 100- and 200-day moving averages. Momentum Index: Its short-term momentum index stayed above the support of 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 50 per cent. Its technical reading stood at 68.67 per cent last Friday. Outlook Market weaknesses on the regional equities front dictated the overall market sentiment on the local front. The FBM KLCI registered a week-on-week loss of 10.44 points, or 2.58 per cent. Select second and third liners remained the trading focus last week. MRCB was one of these counters with a week-on-week gain of 17 sen , or 12.32 per cent. Chartwise, MRCB's monthly price trend staged an overhead breakout of its intermediate-term downtrend. Since then, its monthly price trend stayed above this downtrend last Friday. Its weekly price trend staged a technical breakout of its intermediate-term downtrend (See MRCB's weekly price chart - B1:B2). It stayed above the support of its intermediate-term downtrend. MRCB's daily price trend staged a technical breakout of its intermediate-term downtrend (See MRCB's daily price trend - C1:C2) last Wednesday. It continued to stay above this downtrend (C1:C2) on Friday last week. Its daily and weekly fast MACDs (moving average convergence divergence) stayed above their respective slow MACDs at last Friday. MRCB's daily and weekly fast MACDs stayed above their respective slow MACDs. Its 14-day Relative Strength Index (RSI) stood at 68.67 per cent last Friday. Its 14-week and 14-month RSI were at 60.49 per cent and 49.19 per cent, respectively. Following the technical breakout of its intermediate-term downtrend (C1:C2) on its daily price chart, MRCB's price trend is now poised to move towards its intermediate-term resistance zone of between RM1.60 and RM1.85 . The subject expressed above is based purely on technical analysis and opinions of the writer. It is not a solicitation to buy or sell.
Most Popular Stories
- Obama Administration Releases Proposal to Regulate For-Profit Colleges
- Some California Cities Seeking Water Independence
- Motley Crue's Nikki Sixx Marries Model Courtney Bingham
- Chinese e-Commerce Giant Alibaba Gears for IPO in U.S.
- Apple, HP, Intel May Take a Hit from Slowdown in Smartphone Sales Growth
- FDIC Files Lawsuit on Behalf of Banks Allegedly Hurt by Libor Scandal
- SoCalGas Reaches Record Spend on Diversity Suppliers
- Obama Seeks to Stay Neutral in CIA-Senate Conflict
- Will Missing Malaysian Jet Prompt Aviation System Change?
- GM Recall Poses First Major Test for New CEO