Stocks on Bursa Malaysia ended mostly firmer yesterday after three consecutive days of fall. The FBM KLCI opened in the positive territory but ended in the red to close 1.26 points or 0.1% lower at 1264.51. Market breadth was positive throughout the day with gainers led losers by 534 to 190 while 234 counters were unchanged. Volume traded was lower at 935 million shares worth RM1.425 billion.
Chart wise, the FBM KLCI formed a small black candlestick with short upper and lower shadow indicating consolidation with mild selling pressure, as the market takes a breather after two days of hefty fall.
MACD continued to slide lower. RSI(14) at 35.5 is tapering off, and Stochastic at 9 has entered the short term oversold zone or the bearish territory. The indicators reflected the weak market conditions and the situation may persist until there is sign of reversal, which is not in sight yet.
The benchmark index continued to stay below the short to medium term moving averages (MA) but is still above the long term MA. Hence, for the short term the index may continue to face some selling pressure. The index will face strong resistance at the 1274 to 1282 region and may get good support at 1240 to 1250 region.
The short term trend of the FBM KLCI is now down but the longer term trend is still up.
Today, the FBM KLCI is likely to trade within a range of 1250 to 1270.
This week's expected range: 1270 – 1320
Today’s expected range: 1250 – 1270
Resistance: 1266, 1268, 1270
Support: 1250, 1255, 1260
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