Sabtu, 21 Mei 2011

Rhb Asset Management. FBM KLCI stages mild follow-through rebound

THE FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) staged a very mild follow-through rebound for the week ended yesterday.

It stayed above its major psychological support of 1,500 points when it closed at 1,541.03 yesterday.

Share prices on Bursa Malaysia consolidated last week's gains, in tandem with the technical pullbacks on the New York and regional stock markets on Monday. The FBM KLCI trended between an intra-day low of 1,536.27 and an intra-day high of 1,545.34. It closed at 1,536.27, giving a day-on-day loss of 4.47 points, or 0.29 per cent.

The FBM KLCI staged a technical rebound on Wednesday. It trended from its intra-day low of 1,537.33 to its intra-day high of 1,543.35. It closed at 1,541.27, giving a day-on-day gain of 5 points.

Trading remained sideways when the FBM KLCI edged marginally higher on Thursday. It trended from its intra-day low of 1,541.97 to its intra-day high of 1,550.62. It ended the day at 1,544.02, giving a day-on-day gain of 2.75 points.

The benchmark index resumed its consolidation yesterday when the it consolidated in tandem with the regional stock markets. The FBM KLCI trended between a day low of 1,541.03 and a day high of 1,547.94 before closing at 1,541.03, giving a day-on-day loss of 2.99 points, or 0.19 per cent.

On the overseas markets, the Dow Jones Industrial Average consolidated Within tight trading ranges over the last four trading days. The Dow closed at 12,605.32 points on Thursday, giving a four-day gain of 9.57 points.

The Tokyo stock market staged a follow-through technical pullback during the week. The Nikkei 225 Index closed at 9,607.08 points yesterday, giving a week-on-week loss of 41.69 points.

Hong Kong stocks staged a technical pullback over the last four trading days. The Hang Seng Index closed at 23,199.39 points, giving a week-on-week loss of 76.88 points, or 0.33 per cent.

On the home front, the FBM KLCI eked out a week-on-week gain of 0.29 point, or 0.02 per cent.

The following are the readings of some of its technical indicators:

Moving Averages: The FBM KLCI continued to stay above its 10-, 20-, 30-, 50-, 100- and 200-day moving averages.

Momentum Index: Its short-term momentum index stayed above its neutral reference line at the market close yesterday.

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 56.69 per cent level yesterday. 


The FBM KLCI hit its intra-week low of 1,536.27 on Thursday, staging a successful re-test of this column's envisaged support zone (1,502 to 1,536 levels).

Subsequent mild technical rebounds hit its intra-week high of 1,550.62 on Thursday, moving into the confines of this column's envisaged resistance zone (1,544 to 1,578 levels). 

A quick review of the performances of the FBM KLCI's 30 components shows losers beating gainers by 18 to 12. 

The benchmark index's weekly charts continued to stay below the support of its intermediate-term uptrend (see FBM KLCI's weekly chart A5:A6) during the week. 

Chartwise, the FBM KLCI's had since stay above its immediate downside support (see FBM KLCI's daily chart B3:B4) over the week. 

The FBM KLCI's daily and monthly fast MACDs (moving average convergence divergence indicators) continued to stay above their respective slow MACDs yesterday. Its weekly fast MACDs continued to stay below its weekly slow MACDs. 

The FBM KLCI's 14-day RSI stayed at 56.69 per cent level on Friday. Its 14-week and 14-month RSI stayed at 56.81 and 71.07 levels respectively. Last week, this column commented that the FBM KLCI might stage a re-challenge of its immediate overhead resistance at 1,550. It did. The benchmark index hit its intra-week high of 1,550.62 on Thursday.

Judging from its behaviour over the last five trading days, the FBM KLCI is likely to consolidate between 1,530 and 1,540 before resuming its technical rebounds. 

Next week, the FBM KLCI's envisaged resistance zone is at the 1,545 to 1,579 levels while its immediate downside support is at the 1,503 to 1,537 levels.

The subject expressed above is based on technical analysis and opinions of the writer. It is not a solicitation to buy or sell.

Read more: FBM KLCI stages mild follow-through rebound


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