Tracking the positive developments on Wall Street, the FBM KLCI advanced to close at a five-month high at 1,692.22 pts yesterday. The MACD Line has expanded positively above the zero level, while the RSI continues to hover above 50. The immediate resistance will be pegged around the 1,700-1,730 levels. Support will be anchored around the 1,650 level.

After finding support along the RM0.305 level, D&O has retested the RM0.33 resistance level with higher-than-average volumes. The MACD Histogram extended another green bar, while the RSI has crossed above 50. Monitor for a breakout above the RM0.33 resistance level to target the RM0.35- RM0.38 levels. Support will be anchored around the RM0.305 level.

HEXZA has formed a breakout-pullback-continuation pattern above the RM0.95 level with some improved volumes. The MACD Histogram has turned green, while the RSI continues to trend above 50. Monitor for a breakout above RM0.96 level to target the RM1.00-RM1.05 levels. Support will be pegged around the RM0.95 level.

FITTERS has risen above the EMA120 level and consequently breached above the RM0.42 consolidation level with high volumes. The MACD Indicator has issued a BUY signal, but the RSI is approaching the overbought level. Price could trend towards the RM0.445 and RM0.49 levels. Support will be set around the RM0.395 level.

Source: Mplus Research - 27 Jan 2017