Share prices on Bursa Malaysia closed generally lower as profit taking activities continued into Thursday, Nov 12. The FBM KLCI opened lower at 1269.64 and traded in the negative territory most of the day. The key index was at one stage down 7.67 points hitting the intra-day low of 1262.48; buying interest which surfaced at mid afternoon on key heavyweights lifted the index to closed 1.6 point or 0.13% higher at 1271.75. Decliners led advancers by 379 to 287 while 244 counters were traded unchanged. Volume traded was lower at 925 million shares.
As pointed out in yesterday’s analysis, the appearance of a bearish engulfing candle indicates selling pressure, and FBM KLCI indeed continued moving southward most of the day on Thursday. Its price movement yesterday formed a hammer candlestick, which indicates buying support and may signal a temporary bottom at 1262. However, a hammer appearing at a relatively high price level is not very reliable; especially its formation was done on a last minute effort.
MACD moved up marginally and its histogram was slightly higher, indicating a slight increase in momentum. RSI was up slightly. However, Stochastic slid down slightly to 84 from 87 the previous day, a break below 80 may trigger a continued downward movement. Nonetheless, the underlying uptrend as indicated by the short, medium and long term moving averages is still intact.
Today, the benchmark index is expected to trade within the range of 1256 to 1279
This week's expected range: 1240 – 1282
Today's expected range: 1259 – 1279
Resistance: 1273, 1275, 1279
Support: 1259, 1262, 1265
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