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
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