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
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