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
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