FBM KLCI likely to remain range-bound next week

SHARE prices on Bursa Malaysia
consolidated over the last five trading days after last week's jump of
77.61 points, or 4.58 per cent. The FTSE Bursa Malaysia KLCI (FBM KLCI)
recorded its all-time historical closing high of 1,788.43 on Tuesday.

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It stayed above its psychological support of 1,750 when it closed at of 1,769.16 points yesterday.

The
FBM KLCI hit an intra-week high of 1,793.87 on Wednesday before hitting
a low of 1,765.45 on Thursday, giving the index a trading range of
28.42 points.

The local bourse registered a week-on-week loss of 3.22 points last week. Its losers outperformed gainers by 16 to 10.

Share prices on Bursa Malaysia consolidated over all five trading days last week.

It closed marginally lower at 1,769.16 points on Friday, with a week-on-week loss of 3.22 points, or 0.18 per cent.

The
FBM Small Cap Index gained 687.56 points, or 5.12 per cent, to close at
14,107.11 points while the FBM ACE Index closed out the week broadly
higher at 4,679.41 points last Friday, recording a gain of 327.14
points, or 7.52 per cent.

The following are the readings of some of some of the FBM KLCI's technical indicators:-

Moving Averages: The FBM KLCI continued to stay above its 10-, 20-, 30-, 50-, 100- and 200-day moving averages on Friday.





Momentum Index: Its short-term momentum index continued to stay above the support of its neutral reference line last week.

On Balance Volume (OBV): Its short-term OBV trend dipped above the support of its 10-day exponential moving averages.

Relative Strength Index (RSI): Its 14-day RSI stood at the 64.02 per cent level on Friday.

The
FBM KLCI hit its intra-week high of 1,793.87 on Wednesday, moving into
the confines of this column's envisaged resistance zone (1,776 to 1,830
levels).

Subsequent technical pullbacks sent the index to a
low of 1,765.45 on Thursday, allowing it to stage a re-test of this
column's envisaged support zone (1,713 to 1,768 levels).

On
the index, Ambank registered week-on-week gains of 8.04 per cent, 3.72
per cent, 2.09 per cent and 1.26 per cent, respectively.

UEM Land Holdings Bhd was the week's top performer with a year-to-date gain of RM1.07, or 50.95 per cent.

The
FBM KLCI closed at an all-time high of 1,788.43 on Tuesday before
hitting a low of 1,765.45 on Thursday. It closed at 1,769.16 points on
Friday, giving it a total loss of 3.22 points, or 0.18 per cent.

It stayed within the confines of its long-and intermediate-term trendlines on Friday.

Chartwise,
the FBM KLCI continued to trend above the upper channel of its
intermediate-term uptrend channel (B1:B2 and B3:B4) yesterday.

It stayed above the support of its intermediate-term uptrend support (B1:B2) last week.

The
FBM KLCI's daily, weekly and monthly fast MACDs (moving average
convergence/divergence) continued to stay above their respective slow
MACDs on Friday.

The FBM KLCI's 14-day RSI stayed at 64.02
per cent. Its 14-week and 14-month RSI stayed between 70.97 and 68.36
per cent last Friday.

The FBM KLCI hit a high of 1,793.87 on
Wednesday before consolidating lower to close at 1,769.16 points on
Friday, staying above the upper resistance (B3:B4). The FBM KLCI
continued to stay above the support of 1,750 yesterday .

Next week, the FBM KLCI will continue to consolidate in range-bound trading.

The
FBM KLCI's envisaged resistance zone is at the 1,773 to 1,807 levels
while its immediate downside support is at the 1,732 to 1,766 levels.

The
subject expressed above is based purely on technical analysis and
opinions of the writer. It is not a solicitation to buy or sell