Selling pressure on selective index heavyweights continue to weigh on the local bourse as the FBM KLCI edged lower for the fourth straight session, closing at 1,740.65 pts last Friday. The MACD Histogram has extended another red bar, while the RSI remains below 50. Resistance will be pegged around the 1,750- 1,760 levels. Support will be set around the 1,730 level.

SENDAI has formed a bullish engulfing candle to close above the EMA20 level with improved volumes. The MACD Histogram has turned green, while the RSI remains above 50. Monitor for a breakout above the RM0.935 level, targeting the RM1.05-RM1.16 levels Support will be set around the RM0.87 level.

LEWEKO has formed a bullish engulfing candle to close above the EMA9 level. The MACD Histogram has turned green, but the RSI is slightly overbought. Monitor for a symmetrical triangle formation breakout above the RM0.31 level, targeting the RM0.34-RM0.365 levels. Support will be anchored around the RM0.29 level.

KTB has extended its gains and subsequently re-tested the RM0.165 resistance level with improved volumes. The MACD Indicator has expanded positively above the zero level, while the RSI remains above 50. Monitor for a breakout above the RM0.165 level, targeting the RM0.185 and RM0.205 levels. Support will be pegged around the RM0.15 level.

Source: Mplus Research - 23 Oct 2017