Trading activities on Bursa Malaysia was rather sluggish yesterday despite overnight gains on Wall Street. The FBM KLCI bucked the upward trend in the region, opened in the red and remained there until the last hour of the day to closed 0.11 point or 0.01% higher at 1260.53. Decliners outpaced gainers by 287 to 278, while 283 counters were unchanged. Volume dipped further to a fresh low of 410 million shares worth RM627 million.
Chart wise, the FBM KLCI formed a small white Doji candlestick which signifies consolidation and indecision of market direction. MACD at 0.049 continued to slide down and is near the zero line, a break below the zero line would mean the end of the bull-run since April this year. RSI has turned flat but still below 50, and Stochastics continued to slide down signifying short term weakness.
The index is now trapped with resistance on top posted by the 10 and 30-days moving average (MA), and supported below by the 60 days MA which is at now 1254. In order for the KLCI to resume its short term uptrend, it is required to break above the 30-days MA at 1268. Conversely, if the index breaks below 1254 and the 1250 psychological support level, it may move lower to test the 1230 support level.
Today, the FBM KLCI is expected to trade within a range of 1254 to 1267.
This week's expected range: 1241 – 1281
Today’s expected range: 1254 – 1267
Resistance: 1263, 1265, 1267
Support: 1254, 1256, 1258
To all my friends who celebrate Christmas, I wish you Merry Christmas!
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