As expected, the FBM KLCI continued its correction into yesterday’s session. It opened lower at 1259.40 (-0.66), dipped to a low of 1257.17, recovered to a high of 1263.02 and closed almost unchanged at 1260.02 (-0.04 point). Other broader base indices closed positively, FBM EMAS closed at 8478.71 (+7.07, +0.08%), FBM Top 100 closed at 8260.00 (+ 3.07, + 0.04%), FBMACE at 4358.99 (+10.71). This indicates a mixed market.
The price action of the KLCI formed a Doji candlestick yesterday, which indicates an indecision state, probably due to most investors adopting a wait and see attitude, sidelining the market ahead of the Budget 2010 to be tabled today. Volume dropped to below 1 billion with 744 million shares traded. Market breadth was almost 1 to 1 with gainers led losers at 343 to 320, and 273 counters were unchanged.
MACD and its histogram continued to slide down, indicating a slowing in momentum. RSI(14) is flat at 74.34, and Stochastic (14, 3, 3) at 87.60 continues its slides, indicating short term correction. The overall trend, as indicated by the short, medium and long term SMA is still up.
Today, the KLCI is expected to trade within a range of 1255-1265, with immediate support at 1256, overhead resistance is expected at 1263, 1265 and 1270
This week's expected range: 1238 – 1282
Today's expected range: 1255 – 1265
Resistance: 1263, 1265, 1270
Support: 1251, 1253, 1256
Stock to watch: Hiaptek
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