By S.N.LOCK
The KLCI's technical pullback over the first three trading days hit its intra-day low of 1,431.69 on Thursday, staging a successful re-test of this column's envisaged support zone (1,409 to 1,443 levels).
Subsequent sharp technical rally took the KLCI to a all-time historical high of 1,467.78 yesterday, moving into the confines of this column's envisaged resistance zone (1,451 to 1,485 levels).
Chartwise, the KLCI continued to stay decisively above its downside support (see KLCI's monthly chart - A1:A2). It closed at a new all-time historical closing high of 1,466.67 yesterday.
The KLCI's daily trend staged a successful re-test of its immediate downside parallel support trendline (see KLCI's daily chart - B5:B6). It is staging a re-challenge of its overhead parallel resistance trendline (B7:B8).
The KLCI's daily, weekly and monthly fast MACDs (moving average convergence divergence) continued to stay above their respective slow MACDs. The bullish configuration of the KLCI's three time-frame MACDs will continue to drive the KLCI onto higher technical levels.
The KLCI's 14-day RSI stayed at 68.59 per cent level yeterday. Its 14-week and 14-month RSI stayed at 65.72 and 78.27 per cent levels respectively.
Last week, this column commented on the possibility of ending the year with a bang. It did. The KLCI hit a new all-time historical high of 1,452.57 on December 31, replacing its previous historical high of 1,449.70.
Following the sharp technical rally yesterday, the KLCI is likely to pause for a brief consolidation before resuming its prior technical rally. It has an even chance of staging a re-challenge of 1,490. Second liners are likely to come under some buying support.
