The FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) continued to stay above its critical support of 1,400, closing at 1,437.78 points on Thursday.
Key heavyweight index-linked counters led the market consolidation and subsequent rebound last week. The FBM KLCI staged a mild technical rebound when it hit its intra-week low of 1,428.66 on Wednesday.
The FBM KLCI fell from its intra-week high of 1,440.01 last Monday to its intra-week low of 1,428.66 points on Wednesday, giving an intra-week trading range of 11.35 points.
The FTSE Bursa Malaysia Small Cap Index added 57.18 points, or 0.51 per cent, to 11,293.91, while the ACE Market Index gained 31.29 points, or 0.83 per cent, to 3,780.65 level last Thursday.
On the overseas market, the overall market sentiment on Wall Street consolidated further last week.
The Dow Jones Industrial Averages closed at 10,462.77 points last Friday, giving a week-on-week gain of 14.84 points, or 0.14 per cent.
The tech stock heavy Nasdaq Composite Index moved in tandem with the general market sentiment last week. The tech heavy Nasdaq Composite Index closed higher at 2,242.48 points last Friday, giving a week-on-week gain of 8.73 points, or 0.39 per cent.
The Hong Kong stock market staged a mild technical rebound last week. The Hang Seng Industrial Index closed at 21,257.39 points last Friday, giving a week-on-week gain of 285.89 points, or 1.36 per cent.
The Tokyo stock market saw a technical rebound over the last two trading days last week. The Nikkei 225 Index closed marginally higher at 9,239.17 points, giving a week-on-week gain of 125.04 points, or 1.37 per cent.
On the home front, Pacific & Orient Bhd (P&O) staged a technical rebound last week. Its daily price trend rebounded to close at RM1.16 last Thursday, giving a week-on-week gain of 8 sen, or 7.41 per cent.
Following are the readings of some of its technical indicators:-
* Moving Averages: P&O'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 continued to stay below the support of 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 below the 50 level. Its technical reading stood at the 59.09 per cent level at the market close last Thursday.
Outlook
While key heavyweight index-linked counters continued to dictate the market direction of the FBM KLCI last week, selective second and third liners provided mild rebounds. P&O was one of these counters.
Chartwise, P&O's monthly price trend hit its seven-year high when it closed at RM1.16 last Thursday.
Its weekly price trend breached the resistance of its intermediate-term resistance (See P&O's weekly price trend - A1:A2) last week. P&O's weekly price trend continued to trend above its immediate downside support (A3:A4).
P&O's daily price trend breached the resistance of its short-term downtrend (See P&O's daily price trend - B1:B2) on Thursday.
Its weekly and monthly fast MACDs (moving average convergence divergence) stayed above their respective slow MACDs at the market close last Thursday. Its daily fast MACD continued to stay above its daily slow MACD.
Its 14-day Relative Strength Index (RSI) stood at the 59.08 per cent level last Friday. Its 14-week and 14-month RSI were at the 75.11 and 86.59 per cent levels respectively.
Following the technical breakout of its short-term downtrend (B1:B2) on its daily price chart, P&O's daily price trend is likely to stage a follow-through rebound in re-challenging previous rebound high.
The subject expressed above is based on technical analysis and opinions of the writer. It is not a solicitation to buy or sell.
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