SHARE prices on Bursa Malaysia rebounded in earnest in tandem with the simultaneous rebounds on the Wall Street, Tokyo and Hong Kong stock markets last week.
The FTSE Bursa Malaysia KLCI (FBM KLCI) ended broadly higher at 1,818.86 points, with a week-on-week gain of 1.71 per cent.
Market sentiment on the local front improved considerably in step with regional stock markets.
On the index, 26 out of the 30 heavyweights listed rebounded last week.
The local bourse rebounded to close near its weekly high at 1,818.86 last Friday, staying comfortably above its major psychological resistance of 1,800 points after hitting an intra-week low of 1,790.07 points last Monday.
The benchmark hit an intra-week low of 1,790.07 last Monday before staging a sharp technical rebound to its intra-week high of 1,819.23 last Friday, recording an intra-week trading range of 29.16 points.
It closed at 1,818.86, with a week-on-week gain of 30.55 points, or 1.71 per cent.
The FBM Small Cap Index jumped 4.40 per cent, to 17,277.33, while the FBM ACE Market Index advanced 184.93 points, or 3.02 per cent, to close at 6,303.30 points last Friday.
In New York, renewed technical rebounds on Wall Street sent the Dow broadly higher last Friday. It closed higher at 16,805.41 last Friday, with a week-on-week gain of 2.59 per cent.
The tech stock-heavy Nasdaq Composite Index moved in tandem with the broader market sentiment last week. It closed broadly higher at 4,483.72 points last Friday, with a week-on-week gain of 5.29 per cent.
On the home front, Classic Scenic Bhd (CScenic) staged a technical rebound last Friday.
Its daily price trended higher to close at RM1.29 last Friday, giving it a week-on-week gain of 15 sen, or 13.16 per cent.
Following are the readings of some of CScenic’s technical indicators:
Moving Averages: CScenic’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 had since 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 stayed above 50 per cent. Its technical reading stood at 76.46 per cent last Friday.
Outlook
Sharp rebounds on Wall Street, the Hong Kong and Tokyo stock markets led share prices on Bursa Malaysia to rebound in tandem.
Select Main Market counters posted impressive rebounds last week. CScenic was one of the counters, with a day-on-day gain of 15 sen, or 13.16 per cent, last Friday.
Chartwise, CScenic’s monthly price trend continued to climb along its intermediate-term uptrend support at the market close last Friday. Also, its daily price trend staged an overhead breakout of its short-term downtrend.
CScenic’s weekly price trend staged an overhead breakout of the upper resistance of its intermediate-term symmetrical pattern formation (B1:B2 and B3:B4) last Friday (See CScenic’s weekly price chart B1:B2).
CScenic’s weekly price trend remained above its intermediate-term downtrend support (B1:B2).
CScenic’s daily price trend staged an overhead penetration of the downtrend of its intermediate-term pattern formation (C1:C2 and C3:C4).
Also, its daily price trend stayed above its intermediate-term downtrend support (C1:C2) last Friday.
The technical breakout of CScenic’s intermediate-term downtrend (C1:C2) on its daily price chart augurs well for its near-term perspectives.
CScenic’s daily price trend is poised to stage a re-test its immediate overhead resistance zone which is likely to be between RM1.35 an RM1.60 .
The subject expressed above is based purely on technical analysis and opinions of the writer. It is not a solicitation to buy or sell.