Stocks on Bursa Malaysia traded firmer on Thursday as regional markets recovered from the fall on Wednesday, which was triggered by the worries over China’s move to tighten its monetary policy. The FBM KLCI opened 0.99 point higher and traded in the positive territory throughout the day and ended 5.2 points or 0.4% higher at 1294.71. Market breadth was positive with gainers led losers by 575 to 230, while another 230 counters were traded unchanged. Volume increase to 1.755 billion shares worth RM2.063 billion compared with 1.499 billion shares worth RM1.714 billion the previous day.
Chart wise, the FBM KLCI formed a bullish white candlestick which indicates reversal from the previous day’s fall. The benchmark index has now gone back to its sideways range formed earlier, which is bounded on top by the strong psychological resistance at 1300 and the immediate support below at 1288. The underlying uptrend in still intact and the benchmark index is poised to break the 1300 mark in the very near term.
MACD curved up slightly, but its histogram continued to fall, reflecting the weak momentum of the key index. RSI at 66.5 just hooked up, is still in the bullish zone. Stochastic, however, continued to slide down but remained above the 80 level. The mixed signals of the indicators reflected the consolidation mode of the benchmark index.
Today, the FBM KLCI is likely to trade within a range of 1286 to 1300.
This week's expected range: 1260 – 1330
Today’s expected range: 1286 – 1300
Resistance: 1296, 1298, 1300
Support: 1286, 1288, 1291
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