Last week, the FBM KLCI lost 21.1 pts.

FBM KLCI Weekly Technical Readings

The weekly MACD Line has crossed below the zero level after it has issued the “Sell” signal two weeks ago. The weekly RSI has tripped below 50.

Meanwhile, the daily MACD Line continues to trend lower. The daily RSI, however, is hovering in the oversold region.

FBM KLCI Support & Resistance

Once again, the FBM KLCI retreated below the EMA9 after a three-day rebound last week – indicating that the downtrend is intact. Overall, the medium term trend is pointing downwards. However, as the daily RSI is oversold, the FBM KLCI may rebound towards the resistance of the 1,660 level over the near term. Meanwhile, if the key index breaches the immediate support of 1,600, the next support will be set around 1,550.

Moving Forward

Wall Street is likely to continue with its correction phase over the near term as the Dow and S&P500 are hovering below the EMA20 level. Meanwhile, share prices on

Bursa Malaysia will likely to trend sideways after the MSCI cut weightings on some stocks. Nevertheless, traders could look for opportunities within the oil and gas sector as the crude oil prices are recovering. Also, the construction sector is likely to be focused this week.

Sector focus

The Construction index rebounded off the 287 level despite the negative broader market sentiment. The MACD Indicator has issued a “Buy” signal, while the RSI is approaching 50. Resistance will be pegged around 300. Support will be set around 280.

Stocks to focus

MITRA– Price experienced a strong breakout above RM1.31. The MACD Indicator is suggesting that the trend is positive and the RSI is hovering above 50. Price target will be envisaged around RM1.40-RM1.50. Support will be anchored around RM1.27.

MMCCORP – Price rebounded off the RM2.11 level with improved volumes. As both the MACD and RSI indicators are trending positively, price may trend higher towards the RM2.33 level. Support will be envisaged around RM2.03.

Source: M+ Online Research - 16 May 2016