The benchmark FBM KLCI rose for a second week in the month of November to close last week at 1270.96, the highest closing for the year, making a 10.2 points or 0.81% gain week-on-week. The index continued to move higher on a follow through rebound from the low of 1233.45 registered on Nov 2. It charted a new intra-day high of 1279.52 on Wednesday, Nov 11, since then the key index has been more or lees moving in a tight range for the rest of the week.
Chart wise, the index is still well above the 10-weeks moving average indicating the current uptrend is intact, and its weekly RSI(14) and Stochastic (14,3,3) still remain in the bullish zone. However, weekly MACD as indicated by its shorter histogram is slowing down indicating a reduction in upward momentum.
The longer term outlook for the FBM KLCI remains positive and may test the 1300 level anytime before year end.
On the daily chart, the FBM KLCI closed last Friday at 1270.96, was down 0.79 point day-on-day. Volume traded on Friday dropped to 789.56 million shares was the lowest in the last two weeks; market breadth was mixed with gainers and losers almost equal at 315 to 311.
For most of the week, the FBM KLCI has been more or less in a profit-taking consolidation mode, drifting in a narrow range of about 20 points, as can be seen on the daily chart above. Daily MACD, RSI and Stochastic were mostly flat, supporting the consolidation scenario. The underlying trend, as indicated by the short, medium and long term moving averages is still up.
This week, the FBM KLCI is expected to trade within a range of 1250 to 1289, and today, it is expected to trade within the range of 1262 to 1279
This week's expected range: 1250 – 1289
Today's expected range: 1262 – 1279
Resistance: 1273, 1275, 1279
Support: 1262, 1265, 1267
Stock to watch: INCKEN
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