The FBM KLCI bucked the positive sentiment on Wall Street overnight as the key index formed a bearish engulfing candle to close lower to around the 1,590.84 level yesterday. The MACD Histogram has turned red, while the RSI remains below 50. Resistances will be pegged around the 1,610-1,620 levels. Support will be set around the 1,570 level.

VS experienced a flag-formation breakout above the RM1.27 level on mildly improved volumes. The MACD Histogram has turned green, but the RSI is oversold. Price may advance, targeting the RM1.32 and RM1.39 levels. Support will be set around the RM1.22 level.

PESTECH has experienced a trendline breakout above the RM1.41 level accompanied by rising volumes. The MACD Histogram has extended another green bar, while the RSI has risen above 50. Price targets are envisaged at around the RM1.53-RM1.60 levels. Support will be anchored around the RM1.36 level.

UCHITEC has gapped-up to close above the EMA60 level with improved volumes. The MACD Histogram has extended another green bar, while the RSI remains above 50. Price may trend higher, targeting the RM2.95-RM3.12 levels. Support will be pegged around the RM2.72 level.

Source: Mplus Research - 28 Aug 2019