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
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