The overnight rally of the Dow failed to do much for Asian bourses yesterday, Nov 3, as investors continued to trade cautiously. The FBM KLCI opened 0.15 point lower at 1241.61 and traded higher to an intra-day high of 1245.47 but closed the day with a marginal gain of 0.56 point at 1,242.32. Market breadth was negative with losers led gainers by 389 to 259, and 241 counters were unchanged. Volume traded was higher at 1.2963 billion shares.
The price action of the KLCI formed a small white body inverted hammer candlestick, indicating the bear is still in control. Market momentum is still weak as MACD continued to slide lower. RSI at 53 is flat and Stochastic also flat at 25.67 are indicating a slowing in downward selling pressure.
On the short term, the KLCI will move in a congested sideway range, the 30 days moving average at 1235 will provide immediate support to the KLCI on the downside, but the 10 days moving average at 1252 will continue to cap the upside. The longer term uptrend as indicated by the 60 and 120 days moving average is still intact.
Today, the FBM KLCI is expected to trade within the range of 1235 to 1250.
This week's expected range: 1200 – 1271
Today's expected range: 1235 – 1250
Resistance: 1245, 1247, 1251
Support: 1235, 1238, 1240
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