REBOUNDS on regional stock markets provided the impetus for Bursa Malaysia to reach for new highs last week. The FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) rebounded to end at 1,681.33 points on Friday, a record closing high.
The benchmark index posted a week-on-week gain of 22.48 points, or 1.36 per cent. It hit an all-time high of 1,686.70 on Friday, rebounding from a week of 1,659.86 last Monday, giving a trading range of 26.84 points.
Bursa Malaysia took its cue from the Hong Kong and Tokyo stock markets which gained of 0.71 per cent and 4.58 per cent respectively.
Of the FBM KLCI’s 30 component stocks, 24 posted gains, five registered losses an one remained unchanged.
Among the lower-liner indices, the FTSE Bursa Malaysia Small Cap Index gained 95.23 points, or 0.83 per cent, to 11,541.41 while the FTSE Bursa Malaysia ACE Market Index added 5.56 points, or 0.13 per cent, to 4,206.26.
Select second and third liners remained the trading focus last week. Zhulian Corporation Bhd was one of these counters. Zhulian staged a technical rebound to close at RM2.90 on Friday, giving a week-on-week gain of 18 sen, or 6.61 per cent.
The following are the readings of some of its technical indicators:
Moving Averages: Zhulian’s daily price trend has since stayed above its 10-, 20-, 30-, 50-, 100- and 200-day moving averages at the market close last 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 continued to stay above the support of its 10-day moving averages.
Relative Strength Index (RSI): Its 14-day RSI has since stayed above the 50 level. Its technical reading stood at the 73.78 per cent level at the market close last Friday.
Zhulian’s monthly price trend continued to stay above its intermediate-term support.
Its weekly price trend staged a decisive breakout of its immediate overhead resistance (see Zhulian’s weekly price chart B3:B4). Also, it continued to stay above its intermediate-term uptrend at the market close last Friday.
Its daily price trend staged an overhead technical breakout of its intermediate-term resistance (see Zhulian’s daily price trend C3:C4) last Friday. It continued to stay above its intermediate-term support (C1:C2).
Its daily, weekly and monthly fast MACDs (Moving Average Convergence Divergence indicators) continued to stay above their respective slow MACDs at the market close last Friday.
Its 14-day Relative Strength Index (RSI) stood at the 73.78 per cent level on Friday. Its 14-week and 14-month RSI were at the 71.05 per cent and 81.28 per cent levels respectively.
From the perspectives of the technical breakout of its intermediate-term overhead resistance on its daily price chart (C3:C4), Zhulian’s price trend is now poised to move towards its intermediate-term resistance zone (RM2.95-RM3.20 levels).
The subject expressed above is based purely on technical analyses and opinions of the writer. It is not a solicitation to buy or sell.