Weekly Technical view on KLCI

Weekly Wrap of KLCI

In the entire week the market breath was negative. It closed in the green on Monday followed by four red candles. On the last day of the week market gained little momentum observing little recovery in the counters. US allegations of massive fraud at state investment fund 1MDB wherein US authorities moved to seize more than $1bn (£761m) in assets related to the fund has been the major reason of the market being bearish.

Forecast for week ahead:

The FBMKLCI opened at the level of 1656 on Friday and closed in the red at level of 1657. The trading session on Friday saw a low of 1651; The market traded within a range of 7.86 points between an intra-day high of 1659.76 and a low of 1651.90 during the session.
In the coming week market  could complete its rounding bottom pattern and if it happens it is expected to test the resistance level of 1671 and could go upto the level of 1689. On the other side if the market breaches the support level of 1648 it might go further down to the level of 1638. In the coming days traders would remain cautious regarding the 1MDB issue and would trade accordingly.

Support 1	Support 2	Support 3	Resistance 1	Resistance 2	Resistance 3
1648	1638	1627	1671	1689	1699

 FBMKLCI Week's Performance

Open	1656
High	1659
Low	1651
Close	1657
Change(Points)	-0.12
% Change	-0.01%

Technical indicators:

RSI for this week is 48.954 with CCI at -12.311 Besides, difference line of MACD -8.158.

Counter-Specific News: 

1. The KL118 skyscraper project, also known as Menara Wawasan, is ongoing, said UEM Group Bhd     chairman Tan Sri Ahmad Tajuddin Ali.
2. Dancomech Holdings Bhd, which made its debut on the Main Market of Bursa Malaysia yesterday,     is eyeing sales growth of up to 20% in the next three to five years, pinning its hopes on a recovery       in prices of crude palm oil (CPO) and oil and gas (O&G) going forward.
3. Scomi Engineering Bhd yesterday issued a notice of arbitration against Prasarana Malaysia Bhd to     resolve the dispute between them in relation to the termination of the RM494 million Kuala                 Lumpur monorail fleet expansion project.
4. Petroliam Nasional Bhd (Petronas) awarded a production sharing contract (PSC) to PTTEP HK           Offshore Ltd, KUFPEC Malaysia (SK-410B) Ltd, and Petronas Carigali Sdn Bhd for exploration         Block SK410B at a signing ceremony yesterday.
5. Malayan Banking Bhd (Maybank) expects lower double-digit growth in its credit card billings and     receivables this year as consumers are more prudent on spending. It aims to maintain a 15%                 growth in its credit card base this year.

6.Mercedes-Benz Malaysia Sdn Bhd delivered a record 6,017 cars to customers in the six-month            period ended June 2016, registering a growth of 17% compared with the same period last year.