FBM KLCI on Tuesday opens with a gap of 3.12 point at 1264.61 and climb to an intra-day high of 1270.08. Heavy profit taking activities after 3.30 pm pulled the index down to close at 1265.74 (+4.34, +0.34%). Losers led gainers with 419 to 327, and 241 counters were unchanged. Volume remains active with 1.208 billion shares changing hands. Regional bourses closed mixed.
The trend of the KLCI is up, as indicated by the trend indicators. Moving averages of the short, medium and long term are all indicating a bullish uptrend; MACD is up with the MACD histogram, a momentum indicator, continue to climb higher. Stochastic (14, 3, 3) at 97 indicates a very bullish condition. However, the formation of an inverted hammer-like candlestick of the KLCI indicates strong resistance at the 1270 level. RSI (14) at 80.54 indicates that the KLCI index is short term overbought, together they may forewarn of a possible short term correction ahead, as mentioned in yesterday’s report.
Today, the KLCI is expected to trade within the range of 1258 – 1273. Strong overhead resistance is expected at 1271 and 1273.
Stock to watch: Kurasia
This week's expected range: 1238 – 1282
Today's expected range: 1258 – 1273
Resistance: 1269, 1271, 1275
Support: 1250, 1256, 1260
Disclaimer: The above is not a recommendation to buy or sell, all suggestions mentioned are purely for academic study purposes for our trend trader club members only, and the author may have personal interest and position in some of the examples mentioned. Any losses incurred if you were to trade base on the study examples above is solely your own responsibility. Do consult your dealer before taking any action
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