Stocks on Bursa Malaysia ended mixed yesterday as a lack of fresh leads led investors to lock in gains from previous day’s rally. The FBM KLCI opened in the negative territory and traded in a narrow range of four points throughout the day before closing flat at 1266.43. Gainers led losers by 383 to 267 while 262 counters were unchanged. Volume traded remained low at 664 million shares worth RM1.144 billion. The low volume over the last few days indicated the lack of interest and investors were mainly sidelined waiting for a clearer direction.
The FBM KLCI formed a small body white spinning top candlestick which indicates consolidation and hesitation of the market to move forward, it might also forewarn of a possible market top at current level.
MACD albeit made a golden-cross, but it could be a weak cross, as the MACD is still in its negative zone. RSI(14) is flat, while Stochastic has entered its short term overbought zone.
The FBM KLCI is currently faced with an immediate overhead resistance zone at 1268 to 1277, which is a big hurdle for the index to cross at the moment. The support below is at 1240 to 1250. The 1250 is a critical support level, if the index breaks below it; it might trigger a sell on fear which could see the index plunging to re-test the 1224 support level.
Today, the FBM KLCI is likely to trade within a range of 1255 to 1273.
This week's expected range: 1240 – 1276
Today’s expected range: 1255 – 1273
Resistance: 1268, 1271, 1273
Support: 1255, 1258, 1262
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