The FBM KLCI gapped-down and re-tested the 1,800 psychological level before forming a hammer candle to close at 1,812.45 pts yesterday. The MACD Indicator has issued a SELL signal, while the RSI has tripped below 50. Resistance will be pegged around the 1,830-1,850 levels. Support will be set around the 1,800 level.

WELLCAL has formed a bullish engulfing candle and subsequently climbed above the RM1.58 resistance level with improved volumes. The MACD Histogram has extended another green bar, but the RSI is slightly overbought. Price may trend higher, targeting the RM1.69 and RM1.75 levels. Support will be set around the RM1.47 level.

BAVEST has formed a bullish engulfing candle accompanied by improved volumes. The MACD Histogram has turned green, while the RSI remains above 50. Monitor for a short-term consolidation breakout above the RM0.81 level, targeting the RM0.86-RM0.90 levels. Support will be anchored around the RM0.75 level.

SALCON has rebounded to close at an intraday high of RM0.46 with improved volumes. The MACD Histogram has extended another red bar, while the RSI has recovered from the oversold positon. Monitor for a follow-though buying interest above the RM0.46 level, targeting the RM0.515-RM0.535 levels. Support will be pegged around the RM0.425 level.

Source: Mplus Research - 7 Feb 2018