The local bourse managed to end last week’s shortened trading week 1.99pts (+0.03%) higher, towards 7,204.38, despite falling as low as 7,075.18 intra-day. There have been tall lower shadows over the past three trading sessions.

However, the other indicators are not collectively showing as strong of a bullish signal. The MACD is on a weak buy with increasing histograms. Meanwhile, the gap between the +DI and -DI are narrowing as the ADX is declining. The RSI, on the other hand, is still deep in the buying region.

Most of the sectors were in the green as well, with the Services (+0.71%) leading the gainers. Only the Properties (-0.38%) and Holdings (-0.06%) sectors slumped during last Wednesday’s session.

Technical Indicators:

  • MACD – Bearish divergence
  • DMI – Narrowing gap between +DI and -DI
  • RSI – Flattened in the buying regions

Recommendation

Buy when support holds.

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