FBM KLCI - lack participation

Stocks on Bursa Malaysia closed lower yesterday on lack of participation, as most investors were reluctant to take position in the absence of market moving factors and ahead of the long weekend. The FBM KLCI opened lower and turned green briefly, thereafter, it traded in the red for the rest of the day to close 4.10 points or 0.32% lower at 1271.12. Market breadth was positive with gainers led losers by 376 to 280, while 250 counters were unchanged. Volume increased marginally to 586 million shares, valued at RM798 million.

The FBM KLCI pulled back on profit taking after three days of run up, forming a black candlestick which indicates reversal of the short term uptrend. It however, managed to find support at the 1270 level, and the 10 and 30-days moving averages are also giving support from below at 1266 and 1268 level. MACD continued to move higher, and so is Stochastic, but RSI hooked down slightly. The mixed signals indicated a lack of momentum to move forward and, hence, the index might consolidate.

Today, the FBM KLCI is expected to trade within the range of 1266 to 1281.

This week's expected range: 1245 – 1281
Today’s expected range: 1266 – 1281

Resistance: 1275, 1278, 1281
Support: 1266, 1268, 1270

I wish all my clients and readers a Happy and Profitable Year 2010!

FBM KLCI - moving higher

Share prices on Bursa Malaysia closed firmer yesterday with buying interest seen in the index link heavyweights. The FBM KLCI opened marginally higher, but traded mostly in the negative territory for the whole day, and a last minute buying interest on key heavyweights lifted the benchmark index to close 2.49 points or 0.2% higher at 1275.22. Market breadth was positive with gainers outpaced losers by 383 to 251, while 244 counters were unchanged. Volume increased to 575 million shares worth RM741 million.

As expected, the FBM KLCI continues to move higher and closed at the day high, indicating the effort done to bring up the key index. MACD has just made a golden crossed above its trigger line, with the MACD histogram back to the positive territory after staying in the negative for one and a half month. RSI continued to gain strength, and Stochastic too is moving higher into the bullish zone. All these signals indicated that the index might move up further to retest the 1280 level.

Today, the FBM KLCI is expected to trade within the range of 1268 to 1281.

This week's expected range: 1245 – 1281
Today’s expected range: 1268 – 1281
Resistance: 1277, 1279, 1281
Support: 1268, 1270, 1273

Stock to watch: NOTION

FBM KLCI poised to move higher

Stock prices on Bursa Malaysia ended higher yesterday after the Christmas holiday, encouraged by the DJIA which ended the Christmas Eve at the highest level for the year. The FBM KLCI opened 0.41 point lower, but buying interest in blue-chip stocks pushed the benchmark index to close at the highest point of the day at 1272.73, gaining 8.79 points or 0.70%. Active buying interest was seen in plantation and financial stocks, with KLK, IOICORP, CIMB and MAYBANK leading the gainers. Market breadth was positive with gainers led losers by 396 to 215, while 231 counters were unchanged. Volume increased to 459 million shares worth RM595 million.

Chart wise, the FBM KLCI has now closed above the 30-days moving average (MA), which is an important support to the uptrend of the KLCI since April, after swinging up and down around it for four weeks. MACD has started to hook up, indicating a pickup in market momentum. RSI at 57.8 is gradually turning strong, and Stochastic too has crossed above the 50 level after touching 18, the oversold levels two sessions back. All these technical signals are indicating that the FBM KLCI is starting to turn strong after five weeks of correction and consolidation since hitting the high of 1288.42 on Nov 17.

Today, the FBM KLCI is expected to trade higher within the range of 1266 to 1282.

This week's expected range: 1245 – 1281
Today’s expected range: 1266 – 1282

Resistance: 1276, 1279, 1282
Support: 1266, 1268, 1270

FBM KLCI would be range-bound

Last week was a slow and sluggish week for Bursa Malaysia due to Christmas holiday falling on last Friday. The only positive news was the revised of the 5% real property gains tax (RPGT) on Wednesday to apply for properties held for under five years, rather than across the board as was earlier announced in the 2010 Budget. That gave some properties counters some small boost in their share prices, E&O and SP Setia responded with some marginal gains.

The FBM KLCI registered a loss of 3.03 points, or 0.24% week-on-week to close at 1263.94 on last Thursday, a holiday-shortened week. Weekly trading volume slipped down further to 1.714 billion shares as compared with 2.388 billion shares the previous week, reflecting a rather quiet market.

On the weekly chart, the FBM KLCI formed a Doji candlestick, which indicates indecision of the market directions, and the narrow weekly range of 12 points reflected that the index is in a state of consolidation. In actual fact, the index has been in a consolidation mode for the last four to five weeks, and is expected to continue into this week, as this is also a holiday-shortened week with only four trading days.

On the indicators, weekly MACD continued to slide down, indicating a gradual lost of market momentum. Weekly RSI was down marginally to 68.8 and weekly Stochastic slid down further to 73.9 reflecting the consolidation state of the benchmark index.

The short term weekly trend of the KLCI has turned sideways; nonetheless, the underlying trend of the KLCI as indicated by longer term moving averages is still up.

As for this week, the FBM KLCI is expected to still trade in a range-bound mode within a range of 1245 to 1281, and for today, it is expected to trade within a range of 1258 to 1268.

This week's expected range: 1245 – 1281
Today’s expected range: 1258 – 1268

Resistance: 1265, 1267, 1268
Support: 1258, 1260, 1261

Volume dips further

Trading activities on Bursa Malaysia was rather sluggish yesterday despite overnight gains on Wall Street. The FBM KLCI bucked the upward trend in the region, opened in the red and remained there until the last hour of the day to closed 0.11 point or 0.01% higher at 1260.53. Decliners outpaced gainers by 287 to 278, while 283 counters were unchanged. Volume dipped further to a fresh low of 410 million shares worth RM627 million.

Chart wise, the FBM KLCI formed a small white Doji candlestick which signifies consolidation and indecision of market direction. MACD at 0.049 continued to slide down and is near the zero line, a break below the zero line would mean the end of the bull-run since April this year. RSI has turned flat but still below 50, and Stochastics continued to slide down signifying short term weakness.

The index is now trapped with resistance on top posted by the 10 and 30-days moving average (MA), and supported below by the 60 days MA which is at now 1254. In order for the KLCI to resume its short term uptrend, it is required to break above the 30-days MA at 1268. Conversely, if the index breaks below 1254 and the 1250 psychological support level, it may move lower to test the 1230 support level.

Today, the FBM KLCI is expected to trade within a range of 1254 to 1267.

This week's expected range: 1241 – 1281
Today’s expected range: 1254 – 1267

Resistance: 1263, 1265, 1267
Support: 1254, 1256, 1258

To all my friends who celebrate Christmas, I wish you Merry Christmas!

Bullish Harami on FBM KLCI - possible reversal

Stock prices on Bursa Malaysia were generally firmer at close yesterday, encouraged by the overnight gains on Wall Street. The FBM KLCI opened 3.23 points higher at 1,258.89 on Tuesday and stayed in the positive territory on a narrow range throughout the day. It closed 4.76 points or 0.38% higher at 1260.42. Market breadth was positive with gainers led losers by 335 to 239, while 243 counters were unchanged. Volume was thin at 446 million shares, valued at RM689 million.

The FBM KLCI formed a bullish Harami candlestick pattern yesterday which is a reversal pattern, however, it still requires another candle to confirm the bullish formation. The benchmark index had found support at the 1255 level, and managed to close back above 1260, nevertheless, resistance at 1270 level is still strong. If only the index is able to close above the 1270 level, then it may turn bullish.

MACD at 0.33 continued to slide down, but is still above the zero line. RSI hooked up slightly but is still below 50. Stochastic continued to move southward. The signals from the indicators showed that the benchmark index is currently weak and is in a consolidation mode.

Today, the FBM KLCI is expected to trade within a range of 1255 to 1268.

This week's expected range: 1241 – 1281
Today’s expected range: 1255 – 1268

Resistance: 1263, 1265, 1268
Support: 1255, 1257, 1259

Stock to watch: Cocolnd

FBM KLCI looks bearish

Shares on Bursa Malaysia traded on a sluggish note yesterday as most investors were sidelined due to the long holiday. The benchmark FBM KLCI was in the positive territory very briefly in the morning but slipped into the red soon after and stayed there for the rest of the day. The key index lost 11.31 points or 0.89% to close at 1255.66, dragged down by finance stocks notably HLFG, HLB, MAYBANK and CIMB. Market breadth was negative with losers led gainers by 395 to 202, while 262 counters were traded unchanged. Volume was thin at 476 million shares worth RM892 million.

The FBM KLCI was trading in a narrow range in the morning session yesterday, however, selling pressure which surface in the afternoon session pushed the index to close at the lowest point of the day, forming a bearish long black candlestick. The index is now resting on the recent low of 1255 which formed one week ago, a break below this support level will see it sliding downward further to test the critical psychological level of 1250.

MACD has turned down and is on the verge of breaking the zero line. A break below the MACD zero line would mean the end of the bull-run which started in April this year. RSI has again break below the 50 level, which indicates that the index has turned bearish for the short term. Stochastic too has hooked down reflecting the bearish outlook.

In short, the benchmark FBM KLCI has turned bearish for the short term. The longer term outlook, nonetheless, is still remained positive.

Today, the FBM KLCI is expected to trade within a range of 1239 to 1272.

This week's expected range: 1241 – 1281
Today’s expected range: 1239 – 1272

Resistance: 1260, 1265, 1272
Support: 1239, 1248, 1252

Stock to watch: Support

Market on holiday mood

Shares on Bursa Malaysia continued their consolidation last week. The FBM KLCI opened last Monday at 1259.66 and traded in a narrow range of 16 points for the holiday shortened week, and closed on last Thursday at 1266.97, posting a week-on-week gain of 6.97 points. Due to the holiday mood where most players were sidelined, volume shrank to 2.388 billion shares worth RM3.456 billion compared with the 3.035 billion shares worth RM4.142 billion the previous week.

Chart wise, the FBM KLCI was into its fifth week of consolidation in the absence of fresh leads and long school holidays. The index formed a small white candlestick which indicates consolidation. It rested right on the 10-weeks moving average which has been providing support to the uptrend since April, and it is in a critical condition now as a close below 1260 will see the index turning weak and may head towards the south.

The weekly MACD continued to slide down further. The weekly RSI was up slightly, and the weekly Stochastic has just slid below the 80 level to 78.87. This is the first time the weekly Stochastic has come below the 80 level since April this year, and it may signify further weakness ahead.


On the daily chart, the FBM KLCI formed a black Spinning Top candlestick which indicates indecision of the index to move up further. The index has in fact hover at this level for three days and is resting right on the 30-days moving average. The 1270 has proved to be a strong resistance level.

Daily MACD has gone sideways, RSI slid down further at 52.88 and Stochastic has turned flat at 80.97 which indicate a loss of upward momentum, and the index may turn to move southward again.

The short term trend of the FBM KLCI has turned sideways, and it is going to be range-bound. The longer term trend is up as indicated by the 60 and 120-days moving average.

For this week, the FBM KLCI may trade sideway or range-bound with a downward bias within a range of 1241 to 1281. As for today, the FBM KLCI is expected to trade within a range of 1257 to 1275.

This week's expected range: 1241 – 1281
Today’s expected range: 1257 – 1275

Resistance: 1269, 1271, 1275
Support: 1257, 1261, 1264

Stock to watch: AFG

FBM KLCI - hesitant to move further

Shares on Bursa Malaysia were trading aimlessly in a narrow range yesterday. The FBM KLCI was in the red the whole day, and at one stage it gave back 6.05 points, more than what it gained the previous day, nonetheless, it ended just marginally lower by 1.78 points or 0.14% at 1269.03. Decliners outpaced advancers by 352 to 236, while 266 counters were unchanged. Turnover was higher at 654 million shares worth RM910 million.

As expected, the 1270 posted a strong resistance to the FBM KLCI as mentioned in yesterday’s analysis. The index even lost more than what it had gained at one point, indicating liquidation by some players ahead of the long holidays. However, buying support surfaced in the afternoon session pushing the index to close near its open, forming a Doji candlestick with a long lower shadow. The appearance of a Doji indicates uncertainty or indecision of the index to move ahead.

MACD continues to move up, and so is Stochastic oscillator which is at 78 now, near the overbought zone. RSI was down slightly. The mixed signals confirm the uncertainty view as indicated by the Doji candlestick. The FBM KLCI may in the short term consolidate in the range of 1250 to 1270. The longer term underlying trend is, however, still up.

Today, the FBM KLCI is expected to trade within a range of 1260 to 1275.

This week's expected range: 1238 – 1277
Today’s expected range: 1260 – 1275

Resistance: 1271, 1273, 1275
Support: 1260, 1263, 1266

FBM KLCI up but market directionless

Stocks on Bursa Malaysia was trading aimlessly for most part of yesterday, and window dressing activities in the last minute lifted the FBM KLCI from the negative territory to close 5.36 points or 0.42% higher at 1270.81. Among the heavyweights, Maybank rose 13 Sen to RM6.90, CIMB up 10 Sen @ Rm13.10, Sime Darby increased 3 sen to RM8.98 and MAXIS added 2 Sen to RM5.40. Market breadth was negative with losers led gainers by 308 to 280 while 239 stocks were traded unchanged. Volume was marginally higher at 527 million shares valued at RM802 million.

The FBM KLCI managed to break through the resistance at 1266 and close at 1270 as was mentioned in yesterday’s analysis. With a close above the 30-days moving average, the benchmark index has in the short term turned upward. MACD, RSI and Stochastic continued to move up, indicating a continuation of upward momentum in the index. However, the low volume was a concerned, as it reflects the lack of market participation and the rise may not last.

The 1270 level of the FBM KLCI is a strong resistance area, if the index is not able to close above it, then it might fall and continue to drift between 1260 and 1270.

Today, the FBM KLCI is expected to trade within a range of 1260 to 1277.

This week's expected range: 1238 – 1277
Today’s expected range: 1260 – 1277

Resistance: 1273, 1275, 1277
Support: 1260, 1263, 1265

Breaking out from consolidation

Stock prices on Bursa Malaysia reversed earlier losses to close higher, encouraged by the bullish sentiments in regional market due to the Abu Dhabi government agreed to channel US$10 billion (RM34 billion) to the Dubai Financial Support Fund that will be used to satisfy a series of obligations on Dubai World.

The FBM KLCI opened on Monday in the red, and was trading in the negative territory for major part of the day. Late buying of selected index linked heavyweights lifted the benchmark index to close higher at 1265.45, gaining 5.45 points or 0.43%. However, decliners still outpaced gainers by 361 to 250 with 228 counters unchanged. Volume dropped further to 515 million share worth RM707 million.

Chart wise, the FBM KLCI formed a bullish reversal candlestick, and closed right on the 30-days moving average, trying to breakout from the resistance. MACD turned up marginally as shown by the shorter histogram. RSI has turned up to above 50, back into the bullish zone, and Stochastic too has just crossed up above its moving average. These signals from the indicators are indicating that the index is trying to move out from its current consolidation. A break above 1266 today would see the index turning bullish for the short term, and may move higher to challenge the 1270 level.

Today, the FBM KLCI is expected to trade within a range of 1253 to 1275.

This week's expected range: 1238 – 1277
Today’s expected range: 1253 – 1275

Resistance: 1269, 1272, 1275
Support: 1253, 1256, 1259

Continue to consolidate

The FBM KLCI was basically in a consolidation mode the whole of last week. It opened on last Monday at 1270.20 and dipped to the intra-week low of 1255.76 on Wednesday, but managed to recover from the week’s low to close on Friday at 1260.00. The key index lost 10.20 points week-on-week, and overall weekly volume was lower at 3.035 billion shares valued at RM4.142 billion, compared with 4.071 billion shares worth RM5.640 billion the week before. This clearly reflects the lack of momentum of the KL market.

Chart wise, the FBM KLCI has been in a correction and consolidation mode for the last four weeks since it hit the year high of 1288.42 on 17th November. The key index has now come down to a critical level as can be seen on the weekly chart. It is now resting right on the 10-weeks moving average (MA) which has been giving good support to the index since its up move in April this year. A closed below 1260 in the coming week would mean an end to the current uptrend, and could see the FBM KLCI moving further downward.

The weekly MACD continued to slide downward, indicating the weakening of market momentum and so is the weekly RSI and Stochastic. However, from the weekly perspective, they are still in the bullish zone, hence; the current weakness may just well be a short term consolidation.


On the daily chart, the FBM KLCI has stayed below the 30-days moving average for the last four sessions, and now the 30-days MA would post as a resistance to the index at 1265 level.

Daily MACD has turned flat; however, it is at the brink of crossing the zero-line. A cross of the MACD below the zero-line would mean weakness in the medium term; hence, the critical level to watch on the daily chart is the 1250 level. Daily RSI continued to stay below the 50 level, which indicates mild bearishness, and the daily Stochastics has turn flat, indicating consolidation.

All in all, the mixed signals of the indicators from the weekly and daily chart simply indicates that the market is in a consolidation mode for the short term, the longer term uptrend is, however, still very much intact.

This week, the benchmark index may continue to drift within the range of 1238 to 1277 with a downward bias. As for today, the FBM KLCI is expected to trade within a range of 1253 to 1267.

This week's expected range: 1238 – 1277
Today’s expected range: 1253 – 1267

Resistance: 1263, 1265, 1267
Support: 1253, 1255, 1258

Technical Rebound

Shares on Bursa Malaysia ended mixed yesterday. The FBM KLCI rebounded to close 4.14 points or 0.33% higher at 1259.90, after three consecutive sessions of losses. The benchmark index opened 0.56 points higher and remained in the positive territory, supported by overnight’s gain on Wall Street. However, losers still led gainers by 334 to 279 with 255 counters unchanged. Volume traded was lower at 572 million shares, valued at RM818 million.

Chart wise, the FBM KLCI formed a bullish white candlestick yesterday, signifying a pause to the current short term correction, and the medium term 50-days moving average at 1255 has provided support to the downtrend. MACD has rebounded slightly, indicating a slow down in downward momentum. RSI too has hook up, but still remain below the 50 mark. Stochastic has turned flat. With the technical indications, the index may try to form bottom at this level, and the underlying longer term uptrend is still intact.

Today, the FBM KLCI is expected to trade within a range of 1253 to 1265

This week's expected range: 1230 – 1288
Today's expected range: 1253 – 1265

Resistance: 1261, 1263, 1265
Support: 1253, 1255, 1257

Sliding southward

Shares on Bursa Malaysia continue to slip down further on Wednesday in line with most other major Asian bourses, taking cue from overnight’s weak performance on Wall Street. The FBM KLCI opened weak with a down gap of 2.78 points at 1258.68, drifted in a narrow range in the negative territory throughout the day and ended the day lower at 1255.76, falling 5.7 points or 0.45%. Losers outpaced gainers by 391 to 208, while 254 counters were unchanged. Turnover was lower at 623 million shares, valued at RM896 million.

As expected, the FBM KLCI slipped down further to test the downside support, the candle formation shows that the key index might fall further, as there is still no sign of bottom yet. The key support now is at 1250, an important psychological support level. The medium term 60-days moving average at 1247 which coincides with the recent pivot low on Nov 30 might lend a strong support.

MACD, RSI and Stochastic continue to slide down further reflecting the current weak market conditions.

Today, the FBM KLCI is expected to trade within a range of 1248 to 1263

This week's expected range: 1230 – 1288
Today's expected range: 1248 – 1263

Resistance: 1258, 1261, 1263
Support: 1248, 1251, 1253

Stock to watch: TCHONG, NTPM

Further downside for FBM KLCI

Stock prices on Bursa Malaysia continued to consolidate further yesterday. FBM KLCI opened in the positive territory but turned red soon after, and fluctuated in a very narrow trading range throughout the day. A last minute sell out of some key index link stocks push the benchmark index to close at the lowest point of the day at 1261.46, losing 3.9 points or 0.31%. Losers led gainers by 353 to 265, while 257 counters were unchanged. Volume traded was lower at 640 million shares, valued at RM828.9 million.

The price action of the FBM KLCI yesterday formed a bearish black candlestick which indicates a continuation of the current short term down trend. For the first time since June, the KLCI closed with a bearish black candle below the important 30 days moving average which had all these while supported the current uptrend, indicating there could be further downside to the key index.

MACD continued its slides indicating a picking up in downward momentum. RSI at 47.7 has just crossed below the bull-bear division level at 50. Stochastic too has just hook down below its 50 level. All these three indicators are indicating possible further downside for the FBM KLCI.

Today, the FBM KLCI is expected to trade within a range of 1250 to 1270

This week's expected range: 1230 – 1288
Today's expected range: 1250 – 1270

Resistance: 1265, 1267, 1270
Support: 1250, 1255, 1258

A lethargic market

Shares on Bursa Malaysia started the new week on a lethargic mode, and the overall market was very quiet without any fresh leads. The FBM KLCI was not updating in the morning session due to some technical issue, and that added to the quietness of the market. The afternoon session saw some liquidation on some index link counters, probably due to players locking in profit gained for the year so far, and that sent the benchmark index to drop 4.84 points or 0.38% to close at the lowest point of the day at 1265.36. Decliners led gainers by 309 to 295, while 256 counters were unchanged. Volume traded was low at 669 million shares worth RM848 million.

Chart wise, the FBM KLCI is again closed below the short term 10-days moving average (MA), and rested right on the 30-days MA, indicating short term correction. MACD, RSI and Stochastic continued to slide down, indicating possible further weakness ahead, supporting the short term correction and consolidation view. As the overall volume is low, this could well be a temporary correction. Nonetheless, the key index is in a critical support level, as a break below the 30-days MA may trigger further sell down to the 1250 level. The underlying uptrend as indicated by the longer term moving averages is, however, still intact.

Today, the FBM KLCI is expected to trade within a range of 1258 to 1273

This week's expected range: 1230 – 1288
Today's expected range: 1258 – 1273

Resistance: 1268, 1270, 1273
Support: 1258, 1261, 1263

FBM KLCI - Continue to consolidate

Stocks on Bursa Malaysia opened last week with a gap down at 1256.88 due to the Dubai World debt issue. Panic selling sent the FBM KLCI down to the low of 1248.58 briefly, and the index quickly recovered to close at 1259.11 on last Monday. Technical rebound on last Tuesday continued to push the key index higher at 1266.71, and Wednesday, the KLCI managed to close back above the 1270 level, and remained at that level for the rest of the week and closed last Friday at 1270.20, making a small loss of 0.41 point week-on-week. Overall volume for the week stood at 4.071 billion shares worth RM5.640 billion compared with 3.84 billion shares worth RM4.089 billion the week before last week.

On the weekly chart, the FBM KLCI came down and tested the support of the 10-weeks moving average (MA) and rebounded. The 10-weeks MA is now giving the support at 1255.41. The longer term 30-weeks MA at 1169 is still point upward strongly.

Weekly MACD continued to slide down further, and is below its trigger line for the third week, indicating consolidation. Weekly RSI was almost flat at 72.57, whilst weekly Stochastic was lower at 86.96 indicating a market which lack momentum and in consolidation.


On the daily chart, the benchmark index is clearly seen to be consolidating at the 1270 level, which marked an important support level for the current market. It is supported by the short term 10-day MA which is now at 1269.85, a close of the index below this level will see it moving downward further to 1265 level which is where the important 30-days MA is now. The 30-days MA has now turn flat pointing to a sideway mode.

Daily MACD is flat but is still below its trigger line, RSI has hook down slightly, whereas daily Stochastic is pointing upward. The mixed signals of the indicators are pointing toward a possible sideway consolidation market ahead.

As a conclusion, the underlying longer term uptrend of the FBM KLCI is still remained intact and for the immediate short term the market may go sideways.

This week, the FBM KLCI is expected to trade within a range of 1230 to 1288 with the support zone at 1239-1255 and resistance zone at 1279 to 1288.

This week's expected range: 1230 – 1288
Today's expected range: 1266 – 1274
Resistance: 1272, 1274, 1276
Support: 1266, 1268, 1270

Market in consolidation

After two days of running up, shares on Bursa Malaysia were mostly in the profit taking mode yesterday, amid a lack of market driver. The FBM KLCI opened in the positive territory but went into red in the afternoon session, last minute buying of key heavyweights managed to help put the key index back in the green to close at 1272.35, gaining 1.20 point or 0.09%. Decliners outpaced losers by 338 to 275, while 286 were unchanged. Volume dropped to 643 million shares worth RM821 million.

As mentioned in yesterday’s analysis, the short term 10-days moving average will provide support to the FBM KLCI, and it did. The KLCI formed a Doji yesterday, which indicates that the key index was undecided or hesitant to move up, probably due to the lack of market driver, and profit taking was active throughout the day yesterday.

MACD was up slightly but is still below its trigger line, hence, the lack of momentum. RSI inched up slightly, and Stochastic has just crossed above its 50 mark, indicating a continuation of upward momentum.

In view of the drastic drop in market volume, the KLCI may continue to drift sideways in the next few days; perhaps some year end window dressing activities might lift the index higher, but would be limited.

Today, the FBM KLCI is expected to trade within the range of 1266 to 1278.

This week's expected range: 1230 – 1281
Today's expected range: 1266 – 1278

Resistance: 1274, 1276, 1278
Support: 1266, 1268, 1270

FBM KLCI - back above 1270

Stocks on Bursa Malaysia were broadly higher yesterday on improved sentiments, buoyed by Wall Street’s overnight gain of 126 points. The FBM KLCI opened with a gap up at 1273.28, the high of the day, and profit-taking activities sent the index down to the low of 1267.88 before closing at 1271.15, gaining 4.44 points or 0.35%. Market breadth was positive throughout the day with gainers led loser by 442 to 218, while 230 counters were traded unchanged. Turnover was at 855 million shares worth RM1.0466 billion.

Chart wise, the FBM KLCI has moved across its short term hurdle at 1271 (as mentioned in yesterday’s analysis), and was back above the 10 and 30 days moving average. MACD starts to turn upward as shown by its histogram. RSI continued to move higher and Stochastic too has just cross above its %D line indicating possible further upside. The recent correction is possibly over with indications give by the various indicators.

Today, the FBM KLCI is expected to trade within the range of 1263 to 1278.

This week's expected range: 1230 – 1281
Today's expected range: 1263 – 1278

Resistance: 1274, 1276, 1278
Support: 1263, 1265, 1268

FBM KLCI is firmer

Stocks on Bursa Malaysia traded firmer yesterday as the Dubai World’s financial woes abated. Gains in financial stocks and key heavyweights help push the FBM KLCI higher to close at the highest point of the day at 1266.71, gaining 7.6 points or 0.6%. Investors took the opportunity to bargain hunt but the broader market remained cautious as retail players sell into strength. Decliners outpaced gainers by 327 to 310 while 249 counters were traded unchanged. Turnover was lower at 824 million shares.

Chart wise, the FBM KLCI has again moved above the 30-days moving average (MA), which all these while, has been providing good support to the uptrend since April. While the key index has gain support from the 30-days MA, it still face some resistance from the short term 10-days MA at 1271. If the KLCI can overcome this resistance at 1271, then it may stage a rally to retest the recent high of 1288.

MACD remained weak, indicating the index is still in consolidation mode. RSI has; however, hook up above the 50 level to come back to the bull territory. Stochastic has also starts to hook up, indicating a possible change in the direction of the downward movement ahead.

Today, the FBM KLCI is expected to trade within the range of 1259 to 1272

This week's expected range: 1230 – 1281
Today's expected range: 1259 – 1272

Resistance: 1268, 1270, 1272
Support: 1259, 1261, 1263

A volatile day

Stocks on Bursa Malaysia opened lower across the board on Monday, Nov 30, as a catch up on the heavy losses suffered by other Asian bourses last Friday due to the Dubai World debt default issue. FBM KLCI opened 14.74 points lower at 1,255.87 and fell to the intra-day low of 1248.58 (-22.03 points), but recovered gradually to hit an intra-day high of 1268.98 before some last minute selling sent it lower to end the day 11.5 points or 0.91% lower to close at 1259.11. Decliners outpaced advancers by 506 to 208 while 210 counters were traded unchanged. Volume increases to 1.0901 billion shares.

Chartwise, the FBM KLCI formed a white Spinning Top candlestick with long shadows, which indicates high volatility of the day and uncertainties. It’s close below the 30-days moving average indicates that the index is weak in the short to medium term and there might be further weakness ahead. MACD continues to slide down and so is Stochastic indicating continued weakness of the index. For the first time since June 22, the RSI slid below the 50 level which indicates weakness and the index might consolidate further. The underlying longer term trend as indicated by the 60 and 120 days moving average is, however, still up.

Today, the FBM KLCI is expected to trade within the range of 1245 to 1274

This week's expected range: 1230 – 1281
Today's expected range: 1245 – 1274

Resistance: 1264, 1269, 1274
Support: 1245, 1248, 1254