Tracking the renewed volatility on Wall Street overnight, the FBM KLCI gapped-down, forming a hammer candle to close at around the 1,708.49 pts yesterday. The MACD Histogram has extended another red bar, while the RSI remains oversold. Resistance will be pegged around the 1,730-1,750 levels. Support will be set around the 1,680 level.

DSONIC has formed a bullish engulfing candle to re-test the EMA9 level with improved volumes. The MACD Histogram has turned green, while the RSI has recovered from oversold. Price may stage further recovery, targeting the RM0.715 and RM0.745 levels after a minor pullback. Support will be set around the RM0.60 level.

RHONEMA has formed a bullish candle to re-test the EMA20 level. The MACD Histogram has turned green, while the RSI is re-testing 50. Monitor for a breakout above the RM0.815 level, targeting the RM0.875-RM0.92 levels. Support will be anchored around the RM0.76 level.

KAB has recovered all its intraday losses to close above the EMA120 level. The MACD Histogram has extended another red bar, while the RSI remains below 50. Price may stage further recovery, targeting the RM0.31-RM0.33 levels. Support will be pegged around the RM0.25 level.

Source: Mplus Research - 12 Oct 2018