The FBM KLCI formed a hammer candle after recovering most of its intraday losses as the key index inched lower to around the 1,592.33 level yesterday. The MACD Histogram has extended another red bar, while the RSI remains below 50. Resistance will be pegged around the 1,600-1,610 levels. Support will be set around the 1,580 level.

KGB has rebounded off the EMA9 level with mildly improved volumes. The MACD Histogram has turned green, but the RSI is overbought. Monitor for a breakout above the RM1.32 level, targeting the RM1.38- RM1.41 levels. Support will be set around the RM1.27 level.

VELESTO has experienced a consolidation breakout above the RM0.315 level with improved volumes. The MACD Histogram has extended another green bar, while the RSI remains above 50. Price targets are envisaged at around the RM0.34-RM0.36 levels. Support will be set around the RM0.295 level.

DANCO has formed a bullish engulfing candle to re-test the EMA60 level on improved volumes. The MACD Histogram has turned green, while the RSI has risen above 50. Monitor for a breakout above the RM0.53 level, targeting the RM0.585-RM0.61 levels. Support will be located around the RM0.49 level.

Source: Mplus Research - 25 Sept 2019