Stocks on Bursa Malaysia traded mixed yesterday on cautious sentiments amid weaker regional markets and a lack of fresh new leads. The FBM KLCI opened 0.39 point higher and hit an intra-day high of 1302.36 on selective buying of key blue-chips, profit-taking activities sent the benchmark index back below the psychological 1300 mark. A last minute spurt of buying lifted the index 2.36 points or 0.18% higher to close at 1300.35. Market breadth was negative with losers led gainers by 409 to 345 while 279 counters were unchanged. Volume rose marginally higher to 1.268 billion shares worth RM1.446 billion compared with 1.247 billion shares on Monday.
Chart wise, the FBM KLCI formed a small body white candlestick which indicates low volatility and lack of momentum; this is reflected by the marginally increased in the volume turnover. The resistance zone at 1300 to 1305 would require a little more enthusiasm or volume to break, nonetheless, the benchmark index has already closed at the 1300 mark after two previous attempts that failed. The index would continue to test the April 29, 2008 pivot high of 1305, if successful, the next higher upside target would be 1354.
The technical conditions of the indicators are positive, with MACD, RSI and Stochastic climbing higher, and are all in the bullish territory, with no worrying signs yet. The moving averages, a trend indicator, too are pointing northward.
The market is awaiting a certain catalyst to make a firm breakthrough above its 1305 resistance level, and the general market will still likely be dominated by smaller cap counters with rotational play.
Today, the FBM KLCI is likely to trade within a range of 1294 to 1306.
This week's expected range: 1275 – 1315
Today’s expected range: 1294 – 1306
Resistance: 1302, 1304, 1306
Support: 1294, 1296, 1298
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