Stocks on Bursa Malaysia closed broadly higher yesterday taking cue from Wall Street’s strong gains overnight, with the DJIA rising 156 points on the first day of the New Year. The FBM KLCI opened with a gap up of 2.51 point at 1278.26 and traded higher to chart an intra-day high of 1290.55 before closing at 1288.24 with a gain of 12.49 points or 0.98%, the highest close since May 16, 2008. Market breadth was positive with gainers leading losers by 658 to 184, while 180 counters were unchanged. Volume surges to a fresh high of 1.863 billion shares worth RM1.984 billion. The high volume was contributed by active trading in the lower liners.
Chart wise, the FBM KLCI formed a bullish white candlestick with a breakaway gap which denotes strong buying interest. It tested the high of 1288.42 which was charted on Nov 17, 2009 and closed 0.18 of a point below it, signifying strong resistance of the level. MACD continued to climb higher indicating a pickup in market momentum. RSI at 67 has turned bullish, and Stochastic too is in the bullish zone.
With the bullishness of all the indicators and strong volume, the FBM KLCI is likely to test the 1300 level soon.
Today, the FBM KLCI is likely to trade within a range of 1278 to 1298
This week's expected range: 1248 – 1300
Today’s expected range: 1278 – 1298
Resistance: 1291, 1295, 1298
Support: 1278, 1281, 1285
Stock to watch: HIL
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