Stocks on Bursa Malaysia ended slightly higher on the first trading day of February as overnight gains on Wall Street and positive economic news from the United States helped lift market sentiment. The FBM KLCI opened with a gap up and traded in the positive territory for the whole day, it gained as much as 9 points on an intra-day high of 1268.21, but profit-taking on heavyweights trimmed gains, the index ended 4.6 points or 0.36% higher to close at 1263.76. Market breadth was positive with gainers led losers by 359 to 347 while 251 counters were unchanged. Volume was lower at 928 million shares worth RM1.345 billion.
As it was mentioned in yesterday’s report, the rebound of FBM KLCI was expected. The price action of the benchmark index formed a white candlestick with long upper shadow which indicates strong profit-taking during the day. The reversal of the index may well be just a technical rebound after six day of continuous fall in late January; it is still vulnerable to any less positive news and will follow the direction of regional bourses.
On the indicators, MACD has crossed below its zero line, indicating a medium term correction. RSI at 37 has hooked up slightly but still in the bear territory and Stochastic at 12 too has reversed up but still within its very weak or oversold zone.
The FBM KLCI may continue its rebound but upside is capped at the strong resistance zone of 1270 to 1280 level for the time being.
Today, the FBM KLCI is likely to trade within a range of 1253 to 1275
This week's expected range: 1225 – 1287
Today’s expected range: 1253 – 1275
Resistance: 1268, 1271, 1275
Support: 1253, 1257, 1260
No comments:
Post a Comment