SHARE prices on Bursa Malaysia rebounded in early trading s before succumbing to profit-taking selling pressure last week. Wall Street and regional stock markets’ rebounds sent the FTSE Bursa Malaysia KLCI (FBM KLCI) closing off its intra-week high at 1,870.99 points last Friday
Looking at the performances of the FBM KLCI, 16 of the 30 heavyweights on the index registered week-on-week gains with the FBM KLCI closing at 1,870.99 on Friday. The FBM KLCI closed above its immediate downside support of 1,870 after briefly hitting its intra-week high of 1,878.89 points on Wednesday.
The FBM KLCI hit its intra-week low of 1,859.46 last Monday before staging a technical rebound to its intra-week high of 1,878.89 , with an intra-week trading range of 19.43 points. It closed at 1,870.99 points last Friday, with a week-on-week gain of 6.68 points, or 0.36 per cent.
The FBM Small Cap Index lost 0.84 per cent, to 19,227.92 while the FBM ACE Market Index lost 209.13 points, or 2.87 per cent, to 7,073.61 last Friday.
In New York, share prices on the New York Stock Exchange continued to move higher last week. The Dow closed at 17,001.22 points last Friday, with a week-on-week gain of 2.03 per cent.
The tech-stock heavy Nasdaq Composite Index moved in tandem with the broader market sentiment last week. It closed higher at 4,538.55 points last Friday, with a week-on-week gain of 1.65 per cent.
OKA Corporation (OKA) staged a technical rebound last week. Its daily price trend rebounded to RM1.26 last Friday, with a week-on-week gain of 12.50 per cent.
The following are the readings of some of OKA’s technical indicators:-
Moving Averages: OKA’s daily price trend stayed above all its 10-, 20-, 30-, 50-, 100- and 200-day moving averages.
Momentum Index: Its short-term momentum index stayed above its neutral reference line.
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 73.09 per cent level on Friday.
Outlook
More than half of the counters on the FBM KLCI continued to rebound in tandem with the rebounds on Wall Street and regional stock markets last week.
Select second and third liners on the Main Market registered notable week-on-week gains. OKA was one of these counters with a week-on-week gain of 14 sen, or 12.50 per cent.
Chartwise, OKA’s monthly price trend staged a successful breakout of its intermediate-term overhead resistance for the week ended on Friday.
OKA’s weekly price trend staged a stair-step breakout (See OKA’s weekly price chart B1:B2) last Friday.
OKA’s weekly price trend staged an overhead breakout of its short-term third stair-step resistance (B5:B6) on Friday.
OKA’s daily price trend staged an overhead penetration of its short-term stair-step resistance (See OKA’s daily price trend C3:C4) on Friday.
Its daily, weekly and monthly fast MACDs (moving average convergence divergence) stayed above their respective slow MACDs last week.
Its 14-day RSI stood at 73.09 per cent last Friday. Its 14-week and 14-month RSI were at 82.96 and 92.98 per cent respectively.
The technical breakout of its short-term stair-step resistance (daily chart C3:C3) on its daily price chart augurs well for its near-term perspectives. OKA is likely to see immediate overhead resistance of between RM1.30 and RM1.50 points next week.
The subject expressed above is based purely on technical analysis and opinions of the writer. It is not a solicitation to buy or sell.