Weekly Recap

U.S.  stockmarkets  traded  mixed  last  week as  investors  continue  to  speculate  the interest  rate  status  amid  the  FOMC meeting,  which  was  held  on  17th-18th March.  The  Dow  increased  228.11  pts  to 17,977.42 pts on Monday on the back of a corporate  deal  within  the  pharmaceutical industry,  but  the  key  index  took  a  pause and pulled back 128.34 pts to 17,849.08 pts on  Tuesday  amid  lower  crude  oil  prices ahead  of  the  FOMC  meeting.  However, investors  reacted  positively  to  the  dovish statement by the Fed as it  is likely to  delay the  interest  rate  hike  –  the  Dow  surged sharply  on  a  relief  rally  to  18,076.19  pts (+227.11 pts) on Wednesday. Nevertheless, the  key  index  retreated  117.16  pts  to 17,953.03  pts  on  Thursday.  Overall,  the Dow jumped 378.23 pts last week.

Meanwhile, share prices on Bursa Malaysia trended  higher  after  a  mild  selloff  at  the start  of  the  week.  The  FBM  KLCI  slipped 1.21  pts  to  1,780.54  pts  on  Monday  amid some  last  minute  selling  activities  among selected  banking  and  oil  &  gas heavyweights.  However,  bargain  hunting activities emerged  as traders were tracking the positive  overnight  performance on Wall Street  as  the  key  index  rose  strongly  over the next three trading days  –  the FBM KLCI jumped 7.33 pts, 9.70 pts and 11.56 pts to 1,787.87 pts,  1,797.57 pts and 1,809.13 pts from  Tuesday  to  Thursday  respectively.

Nevertheless,  the  FBM  KLCI  snapped  the three-consecutive  days  of  winning  streak and fell 5.48 pts to 1,803.65 pts on Friday. On  a  W.o.W  basis,  the  FBM  KLCI  added 21.90 pts.

FBM KLCI Weekly Technical Readings

Despite  the  weekly  MACD  Line  trending mildly higher, the weekly MACD Histogram extended  another  red  bar.  Nevertheless, the weekly RSI is hovering above 50.

Meanwhile,  the  daily  MACD  Line  has crossed above zero, but the RSI is hovering below 50.

FBM KLCI Support & Resistance

After the FBM KLCI tripped below the 1,800 psychological  level  two  weeks  ago,  the FBM  KLCI  rebounded  strongly  and  ended above  1,800  last  week  –  it  could  be  an indication  that  the  buying  activities  are picking up over the near term. However, as both  the  daily  and  weekly  indicators  are mixed,  the  FBM  KLCI’s  upsides  will  be capped  around  the  1,820-1,840  levels. Meanwhile,  support  will  be  pegged  around the 1,770 level.

Moving Forward

With the potential delay of the interest rate hike,  investors  could  trade  on  a  slightly positive  tone  over  the  near  term  and  the Dow  may  retest  the  recent  peak  of  the 18,300  level.  Similarly,  share  prices  on Bursa  Malaysia  may  see  further  buying activities  as  the  FBM  KLCI  has  ended above  1,800  last  week.  Also,  trading interest  may  be  noted  within  the  exportrelated  technology  and  Ace  Market  shares amid the weakening Ringgit.

Sector focus

The  FBM  ACE  index  continues  to  stay above the EMA20 level. The MACD Line is hovering above zero, while the RSI is above 50.  Resistance  will  be  located  around  the 7,134  level,  while  the  support  will  be  set around the 6,800 level.

Stocks to focus

OCK  –  Price  has  surged  above  RM0.89 level on the back of improved volumes. The MACD  Histogram  has  extended  another green bar, but the RSI is below 50. Monitor for  a  breakout  above  the  RM0.93  level, targeting the RM1.00  level. Support  will be set around the RM0.88 level.

SCH –  Price continues to sustain above the RM0.265  level  (EMA9)  last  week.  The MACD  Indicator  is  trending  higher  above zero,  while  the  RSI  is  hovering  above  50. Resistance  will  be  located  around  the RM0.315  level.  Support  will  be  pegged around the RM0.255 level.