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
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