LAST week, heavyweight index-linked blue chips took the lead in consolidating the market's recent gains. The FTSE Bursa Malaysia KLCI (FBM KLCI) hit its all-time historical high of 1,882.20 last Tuesday before pulling back to close at 1,834.74 points last Friday and registered a gain of 1.46 points last Monday as compared with the last three trading-day loss of 37.78 points. Among FBM KLCI's 30 components, 25 registered gains, as against five losses. The key index hit its intra-week high of 1,882.20 last Tuesday, giving an intra-week trading range of 47.46 points, compared with the previous week's range of 34.15 points. The FBM Small Cap Index gained 136.65 points, or 0.87 per cent, to 15,785.17 level while the FBM ACE Market Index gained 53.66 points, or 0.95 per cent, to 5,676.52 level last Friday. Share prices on the New York Stock Exchange staged a technical pullback last week. The Dow Jones Industrial Average continued to stay above its major psychological support of 16,000 and ended marginally lower at 16,469.99 points on Friday, giving a week-on-week loss of 8.42 points, or 0.05 per cent. The tech stock-heavy Nasdaq Composite Index consolidated its recent gains last week. It closed lower at 4,131.91 points last Friday, giving a week-on-week loss of 24.68 points, or 0.59 per cent. The Hong Kong stock market paused to consolidate its recent gains, continuing to stay above its immediate downside support of 22,000 level last week. The Hang Seng Index closed at 22,817.28 points last Friday, giving a week-on-week loss of 425.96 points, or 1.83 per cent. The Tokyo stock market continued to stay above the support of 16,000 level last week. The Nikkei 225 Index closed higher at 16,469.99 points, giving a week-on-week gain of 112.37 points, or 0.69 per cent. Back to the local front, Naim Holdings Bhd staged a technical rebound, closing at RM3.85 on Friday, giving a week-on-week gain of 15 sen . Following are the readings of some of the stock's technical indicators: Moving Averages: Naim'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 continued to stay above the support of its neutral reference line last week. On Balance Volume (OBV): Its short-term OBV continued to stay 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 64.25 per cent level. Outlook Last week's trading focus centred on the 30 heavyweight index-linked counters, providing the market momentum in consolidating its recent gains. The FBM KLCI registered a week-on-week loss of 26.32 points, or 1.41 per cent. Selective second liners remained the trading focus last week. Naim was one of these counters. Chartwise, Naim's monthly price trend staged an overhead breakout of its intermediate-term neckline of its double-bottom pattern formation last week. Since then, its monthly price trend continued to stay above this neckline last Friday. Its weekly price trend staged a technical breakout of its intermediate-term downtrend ( See Naim's weekly price chart - B1:B2). It continued to stay above the support of its intermediate-term downtrend. Naim's daily price trend staged a technical breakout of its intermediate-term downtrend ( See Naim's daily price trend - C1:C3) last Friday. It continued to stay above this downtrend (C1:C3) last Friday. Its daily and monthly fast MACDs (moving average convergence divergence) continued to stay above their respective slow MACDs last Friday. Its weekly fast MACD continued to stay below its weekly slow MACD. Its 14-day RSI stood at the 64.25 per cent level last Friday. Its 14-week and 14-month RSI were at the 57.83 per cent and 63.04 per cent levels respectively. Following the technical breakout of its intermediate-term downtrend (C1:C3) on its daily price chart, Naim's price trend is poised to move towards its intermediate-term resistance zone ( RM3.90-RM4.20 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.
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