AFTER the FTSE Bursa Malaysia KLCI (FBM KLCI) rallying to its all-time historical high of 1,882.20 on Tuesday, its overall market sentiment softened over the next two trading days. The FBM KLCI hit its intra-week high of 1,882.20 on Tuesday before staging a technical pullback to its intra-week low of 1,834.74 yesterday, giving an intra-week trading range of 47.46 points. Last week's intra-week trading range was at 34.15 points. Share prices on Bursa Malaysia reacted in tandem with the rally on the Wall Street during the early part of the week. However, subsequent corrections sent the FBM KLCI to a lower close for the week ended yesterday. The 30 index-linked components posted 25 losses with only five counters registered week-on-week gains. The benchmark index opened marginally higher at 1,862.33 points on Monday and continued to stay above its major psychological support of 1,800. The FBM Small Cap Index gained 136.65 points, or 0.87 per cent, to close higher at 15,785.17 points, while the FBM ACE Index closed higher at 5,676.52 points yesterday, giving a week-on-week gain of 53.66 points, or 0.95 per cent, for the week. Followings are the readings of some of its technical indicators: Moving Averages: The FBM KLCI continued to stay above its 30-, 50-, 100- and 200-day moving averages yesterday. It had since stayed below the support of its 10- and 20-day moving averages. Momentum Index: Its short-term momentum index continued to stay above the support of its neutral reference line. 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 65.87 per cent level. Outlook The FBM KLCI hit its intra-week high of 1,882.20 on Tuesday, staging a re-challenge of this column's envisaged resistance zone (1,865 to 1,899 points). It touched its intra-week low of 1,834.74 yesterday, moving into the confines of this column's envisaged support zone (1,822 to 1,856 points). SapuraKencana Petroleum Bhd , Tenaga Nasional Bhd (TNB), Genting Bhd and YTL Corp Bhd registered week-on-week gains of 7.49 per cent, 5.17 per cent, 2.70 per cent and 2.44 per cent, respectively. TNB remained the week's top performing component, with a year-to-year (as at December 31 2013) gain of RM4.44 , or 63.98 per cent. The FBM KLCI's weekly price chart continued to stay above the support of its intermediate-downtrend yesterday (See FBM KLCI's weekly chart - A3:A4). It continued to stay above its intermediate-term uptrend support (A1:A2). Chartwise, the FBM KLCI breached the support of its intermediate-term uptrend (See FBM KLCI's daily chart - B1:B2) yesterday. It continued to stay above its intermediate-term downside support (B5:B5). The weekly and monthly fast MACDs continued to stay above their respective slow MACDs. However, its daily fast MACD had since stayed below its daily slow MACD. The 14-day RSI stayed at the 49.06 per cent level. Its 14-week and 14-month RSI stayed at 60.32 and 67.12 per cent levels, yesterday. The FBM KLCI unfolded a technical pullback over the last four trading days. In summary, the market pullback accounted for a week-on-week loss of 26.32 points, or 1.41 per cent. The FBM KLCI hit its new all-time historical high of 1,882.20 on Tuesday and all-time historical closing high of 1,872.52 on Monday. The composite index is likely to consolidate further in its bid to dilute the overbought momentum. Chartwise, its next downside support is apparent at the 1820-1828 levels. Next week, the resistance zone is envisaged at the 1,839-1,873 levels, while its immediate downside support is likely at the 1,796-1,830 levels. 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
- Elizabeth Vargas' Husband Marc Cohn Addresses Rumors
- Keurig Adds Peet's coffee, Alters Starbucks deal
- Quiznos Files for Chapter 11
- U.S. to Relinquish Gov't Control Over Internet
- Vybz Kartel Convicted of Murder
- U.S. Consumer Sentiment Falls in Early March
- SoCalGas Reaches Record Spend on Diversity Suppliers
- Is Malaysian Airlines Flight 370 in Andaman Sea?
- Koch Brothers Step up Anti-Obamacare Campaign