SIDEWAYS consolidations sent heavyweights lower last Friday. The Hong Kong and Tokyo stock markets contributed to the weak market sentiment on the local bourse, pushing the FTSE Bursa Malaysia KLCI (FBM KLCI) to 1,866.11 points on Friday.
On the index, 18 counters registered week-on-week losses.
The FBM KLCI closed above its immediate downside support of 1,860 points last Monday.
Last week, the FBM KLCI hit an intra-week low of 1,859.58 on Monday before staging a technical rebound to an intra-week high of 1,879.53 on Friday, giving it an intra-week trading range of 19.95 points.
It closed at 1,866.11 points, with a week-on-week loss of 0.26 per cent.
The FBM Small Cap Index lost 2.43 per cent to 18,604.61 points while the FBM ACE Market Index also lost 169.91 points, or 2.40 per cent, to close at 6,903.70 last Friday.
In New York, follow-through technical rebounds on the New York Stock Exchange sent the Dow higher last week.
The Dow closed at 17,0098.45 points last Friday, with another week-on-week gain of 0.57 per cent.
The tech stock-heavy Nasdaq Composite Index rebounded in tandem with the broader market sentiment last week.
It closed higher at 4,580.27 points, with a week-on-week gain of 0.92 per cent.
On the local bourse, Kumpulan Perangsang Selangor Bhd (KPS) staged a technical rebound last week.
Its daily price trend rebounded to close at RM1.70 on Friday, with a week-on-week gain of 9.68 per cent.
The following are the readings of some of KPS’ technical indicators:
Moving Averages: KPS’ daily price trend stayed above all its 10-, 20-, 30-, 50- and 100-day moving averages. Its daily price trend remained below its 200-day moving averages.
Momentum Index: Its short-term momentum index stayed above 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 67.42 per cent on Friday.
Outlook
On the FBM KLCI, heavyweights led a market pullback last week, tracing out consolidations in step with market corrections on the Hong Kong and Tokyo stock markets.
Eighteen blue chips paused to consolidate its recent market gains.
Select Main Market second- and third-liners registered notable week-on-week gains. KPS was one of these counters with a week-on-week gain of 15 sen, or 9.68 per cent.
Chartwise, KPS’ monthly price trend staged a successful breakout followed by a re-test of its intermediate-term downside support for Friday.
KPS’ weekly price trend staged a successful re-test of the neckline (See KPS’ weekly price chart B1:B2) of its double-bottom pattern formation. KPS’ weekly price trend had since bounced off the support of its immediate downside support (B1:B2).
KPS’ daily price trend staged an overhead penetration of the neckline (See KPS’ daily price trend C3:C4) of its double-bottom pattern formation on Friday.
Earlier, its daily price trend stepped out of its intermediate-term downtrend (C1:C2).
Its daily and weekly fast MACDs (moving average convergence divergence) stayed above their respective slow MACDs at last Friday.
Its 14-day RSI stood at 67.42 per cent on Friday. Its 14-week and 14-month RSI were at 53.15 and 54.46 per cent, respectively.
The technical breakout of its short-term neckline (C3:C4) on its daily price chart augurs well for its near-term perspectives. KPS’ daily price trend is poised to re-test its immediate overhead resistance zone of between RM1.75 and RM2 a share.