Key heavyweight index-linked counters led the market's consolidation. The FBM KLCI fell from its intra-week high of 1,331.09 on Tuesday to its intra-week low of 1,304.09 on Friday, giving an intra-week trading range of 27.00 points.The benchmark index posted a week-on-week loss of 19.01 points, or 1.43 per cent.
Among other indices, the FTSE Bursa Malaysia Small Cap Index lost 240.34 points, or 2.20 per cent, to 10,704.91 while the FTSE Bursa Malaysia ACE Market Index lost 82.44 points, or 2.13 per cent, to 3,784.46.
On the foreign front, sentiment on the New York Stock Exchange remained weak. The Dow Jones Industrial Average shed 4.51 per cent on the week, closing at 9,686.48 on Friday.
The tech-heavy Nasdaq market moved in tandem with general market sentiment. The Nasdaq Composite Index dropped 5.92 per cent to 2,091.79 points.
The Hong Kong stock market tracked Wall Street. The benchmark Hang Seng Index closed at 19,905.32 on Friday, down 3.8 per cent on the week.
In Tokyo, the benchmark Nikkei 225 index closed at 9,203.71 on Friday, after rising as high as 9,259.14 at one stage. It shed 5.5 per cent or 533.77 points on the week, its worst week since late May.
On Bursa Malaysia, Kencana Petroleum Bhd staged a sideways consolidation last week. Its daily price trend rebounded to close at RM1.46 on Friday, giving a week-on-week loss of 1 sen, or 0.69 per cent.
The following are the readings of some of its technical indicators:
Moving Averages: Kencana's daily price trend stayed below all its 10-, 50- and 100-day moving averages. It continued to stay above its 20-, 30- and 200-day moving averages.
Momentum Index: Its short-term momentum index continued to stay marginally below the support of its neutral reference line last week.
On Balance Volume (OBV): Its short-term OBV stayed below 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 51.52 per cent level at the market close on Friday.
Outlook
Key heavyweight index-linked counters led the market's consolidation last week. The FBM KLCI managed to stay precariously above its psychological support of 1,300. Selected second liners outperformed some of the heavyweight index-linked counters.
Chartwise, Kencana's monthly price trend moved sideways over the last seven months. It traced out a saucer pattern formation last week.
Its weekly price trend staged a technical breakdown of its intermediate-term uptrend (See Kencana's weekly price trend A1:A2) last week. The stock's weekly price trend continued to stay below its short-term downtrend (A3:A4).
Kencana's daily price trend staged a technical breakdown of its intermediate-term uptrend (See Kencana's daily price trend B1:B2) on May 19 2010 and has since stayed below it.
Its daily and monthly fast MACDs (Moving Average Convergence Divergence indicators) continued to stay above their respective slow MACDs at the market close on Friday. Its weekly fast MACD continued to stay below its weekly slow MACD last week.
Its 14-day Relative Strength Index stood at the 51.52 per cent level on Friday. Its 14-week and 14-month RSIs were at the 50.25 and 60.39 per cent levels respectively.
For the moment, Kencana's daily and weekly price trends continue to stay below their respective downtrends (A3:A4 and B3:B4). A decisive breach of its immediate overhead downtrend will signal the start of its intermediate-term uptrend.
The subject above is based purely on technical analysis and opinions of the writer. It is not a solicitation to buy or sell.
- by Business Times
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