FBM KLCI - profit taking

Stocks on Bursa Malaysia closed mixed yesterday on profit-taking in key heavyweights which weighed down market sentiments. The FBM KLCI closed 0.14 point or 0.01% higher at 1,319.35 after opening 3.24 points up at 1,322.45 in the morning. Decliners led advancers by 487 to 279 while 224 counters were unchanged. Turnover stood at 1.046 billion shares worth RM1.33 billion, down from Monday's 1.138 billion shares worth RM1.498 billion.

Chart wise, the FBM KLCI formed a Doji with long upper shadow, a top reversal candlestick which indicates heavy selling activities at current resistance zone of 1320 to 1334. As it was mentioned in Monday’s report that the market may profit-take after the unveiling of the New Economic Model and it did.

MACD continued to move higher indicating the continued upward momentum. RSI(14) at 64 turned flat and is mildly bullish. Stochastic continued to move higher indicating the short term up cycle is still on.

The overall conditions of the FBM KLCI remained uptrend as indicated by its short, medium and long term moving averages.

The market may consolidate its recent gains while waiting for details on how the NEM would be implemented. However, rotational play on lower liners and selected GLCs may prevail.

Today, the FBM KLCI is likely to trade within a range of 1310 to 1330.

This week's expected range: 1277 – 1339
Today’s expected range: 1310 – 1330

Resistance: 1323, 1327, 1330
Support: 1310, 1314, 1317

Stock to watch: AFG, GLOMAC

FBM KLCI - higher on positive expectation

Stocks on Bursa Malaysia ended broadly higher yesterday, ahead of the country’s New Economic Model scheduled to be announced today. The anticipation of more market liberalization in the economic model prompted gains in both heavyweights and lower liners. The FBM KLCI ended 4.07 points or 0.31% higher at 1,319.21 after opening 1.16 point lower at 1,313.98. Gainers led losers by 472 to 308 while 239 counters were unchanged. Volume stood at 1.138 billion shares worth RM1.498 billion.

The FBM KLCI rise on follow through buying to form a bullish white candlestick, and it is expected to rise further to re-test the recent high of 1334.

MACD has just made a golden cross over its slow MACD, confirming the short term uptrend and the continued pickup in upward momentum. RSI(14) at 64.2 continued to move higher into the bullish zone. Stochastic at 55 continued to climb higher confirming the short term up cycle.

The short term trend of the FBM KLCI has now turned bullish; the medium term trend has just turned up while the longer term trend remained up.

Today, the FBM KLCI is likely to trade within a range of 1310 to 1329.

This week's expected range: 1277 – 1339
Today’s expected range: 1310 – 1329

Resistance: 1322, 1325, 1329
Support: 1310, 1315, 1317

FBM KLCI - Positive week ahead

Stocks on Bursa Malaysia rebounded last week after one week of profit-taking and consolidation on the previous week. The FBM KLCI rebounded in tandem with regional bourses as the Dow continued to move higher, and buying interest was spurred by the positive sentiments ahead of the Invest Malaysia 2010 conference and the unveiling of the New Economic Model at month end.

The FBM KLCI added 18.54 points or 1.43% week-on-week to 1315.14 from 1296.60 the previous Friday. Turnover for the week rose to 5.214 billion shares worth RM7.983 billion from 3.437 billion shares worth RM5.716 billion the previous week.

On the weekly chart, the FBM KLCI formed a bullish engulfing candlestick which indicated a strong reversal of the benchmark index after a week of correction. The index is expected to stage a follow through rebound this week to re-test the overhead resistance zone at 1318 to 1334.

The weekly MACD continued to move higher with the histogram turning shorter, indicating a pickup in weekly momentum, albeit the MACD is still below its slow MACD. Weekly RSI(14) at 67 has hooked up and remained in the bullish zone. Weekly Stochastic has, however, hooked down reflecting the correction mode. The indicators giving mixed signals indicated the current consolidation mode with an upward bias.
With The FBM KLCI continued to stay above the 5-week moving averages, the short term trend is up; the medium term trend as indicated by the 10-week MA which is flat, is sideways, while the long term trend as indicated by the 30-week MA remained up.

This week, the benchmark FBM KLCI may move higher on positive expectation of good news from the NEM, however, the market may profit take after the news is released.

The FBM KLCI may trade within a range of 1277 to 1339 this week, and for today it is likely to trade within a range of 1311 to 1320.

This week's expected range: 1277 – 1339
Today’s expected range: 1311 – 1320

Resistance: 1317, 1318, 1320
Support: 1311, 1312, 1313

FBM KLCI - consolidation

Stocks on Bursa Malaysia ended higher yesterday on gains in selected key heavyweights and water-related counters, sentiments was encouraged by Bank Negara’s positive economic projections that the economy would grow by between 4.5 and 5.5 per cent this year.

The FBM KLCI drifted sideways and moved within a tight range for most part of the day, late buying interest help push the index to close 3.03 points or 0.23% higher at 1312.48. Gainers led losers by 461 to 303 while 247 counters were unchanged. Volume increased to 1.244 billion shares worth RM1.845 billion.

The price action of the FBM KLCI yesterday formed a candlestick with small white body which indicates low volatility and consolidation, as it was forecasted in yesterday’s report. The consolidation indicated the benchmark index was probably waiting for some encouraging news to be announced next week during the investment conference or for the unveiling of the New Economic Model.

Technically, the indicators are turning positive with MACD continued to move up and the histogram are getting shorter, indicating the gradual pickup in market momentum. RSI(14) at 61 has started to turn bullish, while Stochastic has just crossed above its slow Stochastic indicating the beginning of an up cycle has just started.

The short term 5-day MA continued to turn up and is touching the 10-day MA, a cross above the 10-day MA would indicate a short term uptrend. The medium term 30-day MA continued to move higher indicating the medium term trend has changed from sideways earlier to now up, while the longer term trend remained up.

Today, the FBM KLCI is likely to trade within a range of 1306 to 1316.

This week's expected range: 1272 – 1331
Today’s expected range: 1306 – 1316

Resistance: 1314, 1315, 1316
Support: 1306, 1308, 1310

Stock to watch: Kencana, Dufu

I m back

I went to Guilin, China for a holiday, the scenery is beautiful. However, I was having problem accessing blogger.com, hence, did not update for a few days even though I have written my outlook.

Well, here they are, four days in one-go.


Thursday 20100325 Update

Stocks on Bursa Malaysia ended higher yesterday, buoyed by the overnight rally on Wall Street. The FBM KLCI rose 4.6 points or 0.35% to close at 1309.45, after opening 4.91 points higher at 1,309.76. Gainers led losers by 453 to 255 while 295 counters were unchanged. Turnover increased to 1.136 billion shares worth RM1.688 billion.

The FBM KLCI opened with a gap up and rallied to the intra-day high of 1314.73 but heavy profit taking activities pulled the index to close lower then its opening to form a Doji with long upper shadow. This indicated strong resistance as the index move higher into the resistance zone of 1308 to 1334.

MACD has hooked up but still below its slow MACD, while the histogram has turned shorter indicating a gradual pickup in upward momentum. RSI(14) at 59.6 is moving out of its neutral zone towards the bullish zone. Stochastic has hooked up and is touching the slow Stochastic indicating a possible end to the short term down trend.

With the benchmark index closing above the short term 10-day moving average, it has reversed the short term down trend that it went through for the last two weeks. However, the 5-day MA is still remained below the 10-day MA, hence, the short term uptrend cannot be confirmed yet until they cross. The medium term trend of the index has now turned up as the 30-day MA has cross above the 60-day MA. The underlying long term trend still remained up.

Signals from the indicators indicated a possible end to the recent short term down trend, but the formation of a Doji with long upper shadow indicated heavy selling activities at this level, hence, the FBM KLCI may consolidate first before moving higher.

Today, the FBM KLCI is likely to trade within a range of 1300 to 1322.

This week's expected range: 1272 – 1331
Today’s expected range: 1300 – 1322

Resistance: 1314, 1318, 1322
Support: 1300, 1304, 1307



Wednesday 20100324 Update

Stocks on Bursa Malaysia rebounded to close higher yesterday after three consecutive days of losses, in tandem with gains in regional bourses. The FBM KLCI rose 11.20 points or 0.87% to close at 1304.85, again back above the psychological important 1300 level. Gainers outpaced losers by 447 to 253, while 278 counters were unchanged. Volume traded increased to 907 million shares worth RM1.487 billion.

Chart wise, the FBM KLCI formed a bullish reversal candlestick pattern, which opened near the low and closes near the high of the day, the price action indicated the fight back of the bull after three sessions of losses to the bear.

MACD turned flat while the histogram has reversed up, indicating a reduction in downward momentum. RSI(14) at 57.4 has reversed up. Stochastic at 28.4 has tapered off from its steep down slide. The indicators are giving out mixed signals which might indicates the possible change in direction of the current correction of the index.

The benchmark index has now break above its 5-day moving averages (MA) but is capped above by the 10-day MA at 1306, if it is able to break through the 1306 to 1308 resistance zone, the index will move higher to re-test the recent high of 1334.

What is important is that the benchmark index is able to close back above the 1300 psychological level, which will give investors confidence about the future outlook of the market, and this may stage a rally to re-test the recent high of 1334 level before month end’s announcement of the country’s New Economic Model.

Today, the FBM KLCI is likely to trade within a range of 1289 to 1315.

This week's expected range: 1272 – 1331
Today’s expected range: 1289 – 1315

Resistance: 1308, 1311, 1315
Support: 1289, 1293, 1299



Tuesday 20100323 Update

Stocks on Bursa Malaysia ended mostly lower yesterday with losses among many heavyweights dragged down the benchmark index. The FBM KLCI eased 2.95 points or 0.23% to close at 1293.65. Market breadth was negative with losers led gainers by 364 to 301 while 280 counters were unchanged. Volume stood at 674.9 million shares worth RM1.25 billion from 574.7 million shares worth RM1.12 billion last Friday.

As expected, the FBM KLCI continued to slide southward; it formed a bearish black candlestick with small body which indicates consolidation. The fact that the index had closed below the low of last Friday indicated weakness in support and might continued to slide down further.

MACD had made a dead cross last Friday and continued to slide downward, however, it is still above the zero line indicating a short term correction of the index. RSI(14) at 51.3 continued to slide southward and is approaching the 50 mark, a cross below it will led the index into the short term bearish zone. Stochastic at 29.9 is still heading south with no sign that the short term down cycle is anywhere nearing an end. Signals from the indicators reflected the correction and consolidation mode of the index.

The short term trend of the FBM KLCI is currently down, medium term is sideways while the longer term trend is still up.

Today, the FBM KLCI is likely to trade within a range of 1286 to 1304.

This week's expected range: 1272 – 1331
Today’s expected range: 1286 – 1304

Resistance: 1297, 1300, 1304
Support: 1286, 1289, 1291



Monday 20100322 update

Stocks on Bursa Malaysia went into a correction mode last week with investors continued to lock in gains on selected blue-chip stocks that had made hefty rise the previous week. There is also a lack of fresh leads that can spur buying interest while investors stayed sidelines awaiting the release of the New Economic Model at the end of the month.

The FBM KLCI lost 14.60 points or 1.11% on a week-on-week basis to close last week at 1296.60. Weekly turnover was lower at 3.437 billion shares worth RM5.716 billion from the 4.402 billion shares valued at RM8.014 billion the week before.

As it was forecasted in previous week’s report, the FBM KLCI formed a bearish black candlestick which closed the gap formed in the week before. With the formation of the bearish black candlestick which confirmed the top reversal signal of the Doji star formed the previous week, the benchmark index is expected to correct further downward and consolidate this week.

Weekly fast MACD is below its slow MACD, and has turned downward again indicating continued weakening of the momentum, and possible further correction ahead. Weekly RSI(14) at 63.6 has also hooked down but still remained in the bullish zone. Weekly Stochastic at 77 is tapering-off indicating a slow down in the upward strength. Mixed signals from the indicators reflected the correction mode of the key index.

The short term 5-week moving average has just crossed above the medium term 10-week MA. These two MA may provide cushion to the correction at 1280 to 1287 levels. The longer term 30-week MA is at 1257 and will provide important support to the index if it falls below the 1280 level.

The immediate short term trend of the index is down; the medium term trend is sideways, while the longer term trend still remained up.

This week, the FBM KLCI is expected to further correct downward and may trade within the range of 1272 to 1331, and for today it is likely to trade within a range of 1284 to 1307.

This week's expected range: 1272 – 1331
Today’s expected range: 1284 – 1307

Resistance: 1299, 1302, 1307
Support: 1284, 1289, 1293

FBM KLCI - continued profit-taking

Stocks on Bursa Malaysia closed mixed yesterday with most investors on the sideline ahead of the US inflation and employment data to be released later. Besides that, investors were also cautious on renewed concern about credit tightening in China after the country's regulators asked banks to control the pace of their lending.

The FBM KLCI had opened 4.73 points higher at 1,306.68 but slipped marginally lower into the red in the afternoon session but managed to close almost flat at 1301.94, losing 0.01 of a point. Decliners led advancers by 364 to 302 while 279 counters were unchanged. Volume was lower at 677 million shares worth RM1.217 billion.

Chart wise, the FBM KLCI formed a bearish black candlestick which reflects active profit-taking activities when the index bounces higher to the resistance zone of 1308. The benchmark index, however, managed to stay above the important 1300 psychological level despite the Bear trying to push it lower.

MACD continued to slide lower and is about to make a dead cross over its slow MACD, if the dead cross happened, it will trigger heavy selling on the index. RSI(14) is flat at 56, remained in the neutral or mildly bullish zone. Stochastic has cross below the 50 level, indicating the short term down cycle is still in force. Signals from the indicators are pointing to a bearish outlook on the benchmark index, where the index may continue to correct downward.

The FBM KLCI is currently capped on top by resistance zone at 1308 to 1312, with the short term 10-days moving average posting a resistance at 1310 level. The support below is the 1300 psychological level and the 1295 low which form three days ago, if these two levels are breached, the index might fall further to the 1280 level, which should gives a strong support to the index.

The short term trend remained down, medium term is sideway, while the long term trend is still up.

Today, the FBM KLCI is likely to trade within a range of 1292 to 1313.

This week's expected range: 1277 – 1359
Today’s expected range: 1292 – 1313

Resistance: 1306, 1310, 1313
Support: 1292, 1296, 1299

FBM KLCI - technical rebound

Stocks on Bursa Malaysia rebounded to close higher yesterday after four consecutive days of declines. The FBM KLCI rose in tandem with major Asian bourses as investors cheered the US Federal Reserve's pledge to keep rates near zero for a prolonged period. The benchmark FBM KLCI rose 3.09 points or 0.24% to close at 1301.95 after opening 4.18 points better at 1,303.04. Gainers led losers by 405 to 268 while 289 counters were unchanged. Volume increased slightly to 741 million shares worth RM1.218 billion.

The FBM KLCI opened 4.18 points higher at 1303.04 and surged to the intra-day high of 1307.08 before profit-taking activities pressed the index to the intra-day low of 1300.29, and last minute buying lifted it off-low to close at 1301.95 forming a black Spinning Top candlestick. The price action of the index reflected a technical rebound which was met with heavy profit-taking activities.

MACD continued to move lower indicating the gradual loss in upward momentum. RSI(14) at 56.6 has hooked up reflecting the technical rebound, and is still in the neutral zone. Stochastic at 49.3 continued to move lower and is below the 50 level indicating the index is turning weak. The signals from the indicators reflected the consolidation mode of the index.

The short term trend of the FBM KLCI is down as the index continued to stay below its 5 and 10-days moving average. The medium term trend is sideways, while the longer term trend of the index remained up.

The fact that FBM KLCI is able to close above the 1300 psychological support level is important in stabilizing the market sentiments. As mentioned in yesterday’s report, the 1308 to 1312 levels will be the immediate overhead resistance zone; if a follow-through on the technical rebound is able to bring the index through this zone, the benchmark index may go higher to re-test the recent high of 1334. The strong support zone lies at 1265 to 1280.

Today, the FBM KLCI is likely to trade within a range of 1292 to 1314.

This week's expected range: 1277 – 1359
Today’s expected range: 1292 – 1314

Resistance: 1306, 1310, 1314
Support: 1292, 1296, 1299

FBM KLCI - taking a breather

Stocks on Bursa Malaysia closed lower yesterday on continued profit-taking in recent gainers, as most investors stayed on the sidelines awaiting fresh leads. At the close the FBM KLCI was 0.81 points or 0.06% lower at 1298.86 after hitting an intra-day low of 1295.31. Market breadth was negative with losers led gainers by 361 to 290 while 293 counters were unchanged. Turnover was lower with 678 million shares worth RM1.059 billion changed hand.

The FBM KLCI continued to fall for the fourth consecutive day after hitting two-years high at 1334.34. The price action of the benchmark index yesterday formed a Doji candlestick which indicates a pause in the recent fall. The index might take a breather to consolidate at the current level before it tries to re-challenge the recent high.

MACD continued to slide lower indicating the loss in momentum. RSI(14) at 55.19 is in the neutral zone, while Stochastic at 55.95 continued to slide lower. Signals from the indicators reflected the current correction mode of the index.

The short term trend of the FBM KLCI has turned down; the medium term is in the sideways, while the long term trend still remained up.
Currently the overhead resistance lies at 1308 to 1312. If the index cannot hold at the current level, it might move lower to the 1280 level where it will find strong support.

Today, the FBM KLCI is likely to trade within a range of 1285 to 1314.

This week's expected range: 1277 – 1359
Today’s expected range: 1285 – 1314

Resistance: 1303, 1308, 1314
Support: 1285, 1290, 1295

FBM KLCI - the gap was closed

Stocks on Bursa Malaysia came under selling pressure yesterday. The decline was in line with the fall across Asian bourses, and lower commodity prices in anticipation that China will initiate liquidity tightening measures that could curb growth in the world's third-largest economy. The FBM KLCI fell 12.45 points to the intra-day low of 1,298.75 points before closing slightly higher at 1,299.67 points for an 11.53 points or 0.88% loss. Decliners led advancers by 461 to 211 while 240 counters were unchanged. Volume stood at 764 million shares worth RM1.098 billion.

Technically, the FBM KLCI’s move to close its gap formed last Monday was anticipated when we mentioned in last Friday’s reports that “the FBM KLCI looks a little congested at the current level of 1320 to 1330 as the candlesticks had been overlapping for the last four day, it could be a sign of distribution”, it might come down to close the gap, and it did just that.

The FBM KLCI had for the short term made a top reversal when it breaks below the short term 5 and 10-day moving averages. The formation of a bearish long black candlestick indicated strong selling pressures on the benchmark index; nonetheless, the index may find some support at the 1300 psychological level, if it does not, then the fall might continue to the 1280 level in the short term.

MACD has turned downward, and the histogram too has turned shorter indicating a reduction in the upward momentum and a change in the short term uptrend of the index into a correction mode. RSI(14) at 55.64 has turned weak and moved into the neutral zone from the bullish zone. Stochastic at 64.47 has come below its 80 level indicating the beginning of another short term down cycle.

Today, the FBM KLCI is likely to trade within a range of 1280 to 1318.

This week's expected range: 1277 – 1359
Today’s expected range: 1280 – 1318

Resistance: 1304, 1309, 1318
Support: 1280, 1290, 1295

FBM KLCI - might further consolidate

Stocks on Bursa Malaysia closed lower yesterday on profit-taking activities after the market rallied to a two-year high on Wednesday. The FBM KLCI had opened 1.87 point lower and rallied to an intra-day high of 1334.34 before closing 6.79 points or 0.51% lower at 1321.43. Market breadth was negative throughout the day with losers led gainers by 440 to 274, while 276 counters were unchanged. Volume was lower at 792 million shares valued at RM1.346 billion.

The price action of the FBM KLCI formed a bearish dark cloud candlestick with long upper shadows indicated heavy selling pressure when the index moved above the 1330 level. The 1330 to 1334 zone will now post as a barrier to the up move of the index. The index was supported at the 1318 level as it rebounded from there. The 5-day moving average (MA) at 1318 also provided the support. If the index breaks the support at 1318, it may move downward to test the 10-day MA support which is currently at 1300. The underlying short and long term trend remained up, while the medium term trend is sideway as indicated by the moving averages.

MACD continued to move higher but tapering off slightly, while the histogram has turned shorter indicating a reduction of the upward momentum. RSI(14) at 69.36 has crossed below the 70 mark, and Stochastic has also crossed below its slow Stochastic indicating a short term correction is in sight.

The benchmark index looks a little congested at the current level of 1320 to 1330 as the candlesticks had been overlapping for the last four day, it could be a sign of distribution.

Today, the FBM KLCI is likely to trade within a range of 1308 to 1334.

This week's expected range: 1260 – 1330
Today’s expected range: 1308 – 1334

Resistance: 1325, 1330, 1334
Support: 1308, 1312, 1316

Stock to watch: ENG

FBN KLCI - down on profit taking

Stocks on Bursa Malaysia closed lower yesterday on profit-taking activities after the market rallied to a two-year high on Wednesday. The FBM KLCI had opened 1.87 point lower and rallied to an intra-day high of 1334.34 before closing 6.79 points or 0.51% lower at 1321.43. Market breadth was negative throughout the day with losers led gainers by 440 to 274, while 276 counters were unchanged. Volume was lower at 792 million shares valued at RM1.346 billion.

The price action of the FBM KLCI formed a bearish dark cloud candlestick with long upper shadows indicated heavy selling pressure when the index moved above the 1330 level. The 1330 to 1334 zone will now post as a barrier to the up move of the index. The index was supported at the 1318 level as it rebounded from there. The 5-day moving average (MA) at 1318 also provided the support. If the index breaks the support at 1318, it may move downward to test the 10-day MA support which is currently at 1300. The underlying short and long term trend remained up, while the medium term trend is sideway as indicated by the moving averages.

MACD continued to move higher but tapering off slightly, while the histogram has turned shorter indicating a reduction of the upward momentum. RSI(14) at 69.36 has crossed below the 70 mark, and Stochastic has also crossed below its slow Stochastic indicating a short term correction is in sight.

The benchmark index looks a little congested at the current level of 1320 to 1330 as the candlesticks had been overlapping for the last four day, it could be a sign of distribution.

Today, the FBM KLCI is likely to trade within a range of 1308 to 1334.

This week's expected range: 1260 – 1330
Today’s expected range: 1308 – 1334

Resistance: 1325, 1330, 1334
Support: 1308, 1312, 1316

FBM KLCI - continued higher

Stocks on Bursa Malaysia ended broadly higher yesterday after one day of consolidation on Tuesday. The FBM KLCI registered another new 2-year high when it rose 10.28 points or 0.78% to close at 1328.22, making it the best performing benchmark gauge in Asia Pacific. Market breadth was positive with 451 gainers to 292 losers, while 270 counters were unchanged. Volume traded rose to 934 million shares valued at RM1.619 billion.

The FBM KLCI opened 0.9 point higher and moved to the intra-day high of 1330.28 before profit taking trimmed gains to close at 1328.22, forming a bullish white candlestick, which indicates the continuation of the uptrend and is poised to test the next higher level of resistance at 1340, while the immediate overhead resistance is at 1332.

MACD continued to climb higher, indicating the pickup in upward momentum. RSI(14) at 74.47 remained in the very bullish zone. Stochastic at 94.86 indicates the index is at the very strong state for the short term.

The underlying short and long term trend remained up, while the medium term trend is sideway as indicated by the moving averages.

Today, the FBM KLCI is likely to trade within a range of 1310 to 1342.

This week's expected range: 1260 – 1330
Today’s expected range: 1310 – 1342

Resistance: 1332, 1337, 1342
Support: 1310, 1314, 1321

FBM KLCI - down on profit taking

Stocks on Bursa Malaysia closed broadly lower yesterday as investors locked-in profit after two days of rally. The FBM KLCI fell 6.28 points or 0.47% lower to close at 1,317.94. Market breadth was negative throughout the day with losers led gainers by 455 to 254 while 257 counters were unchanged. Volume was lower at 797 million shares valued at RM1.452 billion.

The FBM KLCI opened 0.53 point lower at 1,323.69 and traded in the negative zone throughout the day, it fell as much as 7.93 points to the intra-day low of 1316.29 before rebounding to close off low. The index formed a bearish Harami candlestick formation, which might forewarn of a possible reversal, nonetheless, it still require another candle to confirm. In the case where the index continues to correct downward, it might come down to close the gap formed two days ago; however, it will get support at the 1308 level.

MACD continued to move higher and remained above the zero line. RSI(14) at 71.5 hooked down slightly but still in the very bullish zone. Stochastic at 94.9 indicates that the current price is very strong. The indicators reflected the current bullish condition of the index.

The short term trend as indicated by the 5 and 10-day moving average (MA) is up, the medium term trend as indicated by the 30 and 60-day MA is sideway, while the underlying long term trend remained up.

Today, the FBM KLCI is likely to trade within a range of 1308 to 1331.

This week's expected range: 1260 – 1330
Today’s expected range: 1308 – 1331

Resistance: 1322, 1327, 1331
Support: 1308, 1312, 1315

FBM KLCI - higher on bullish sentiments

Stocks on Bursa Malaysia rallied to close broadly higher on positive sentiments following the 0.25% rate hike announced by Bank Negara Malaysia last Thursday, as well as the rally on Wall Street last Friday. The rate hike benefited the banking sector which comprised a large portion of FBM KLCI by weightage. The FBM KLCI opened 12.4 points higher at 1,312.18 and rallied to an intra-day high of 1325.69 before closing at 1324.44, making a strong 24.44 points or 1.88% gains. Gainers outpaced losers by 583 to 194 while 256 counters were unchanged. Volume traded rose to 1.160 billion shares worth RM2.259 billion.

Chart wise, the benchmark FBM KLCI opened with a gap above the 1308 resistance level indicating strong buying interests which overwhelm the sellers, pushing the index to 2 years fresh high, the index formed a bullish white candlestick which indicates buyers are fully in control. With the strong upward momentum, the key index may continue to move higher to test the next key resistance at 1332 and 1344.

MACD continued to move higher with a surge in the histogram indicating a strong increased in upward momentum. RSI(14) at 76.54 is very bullish, albeit in the overbought zone, it might continue to surge higher to hit the 80 mark before strong profit taking activities surface. Stochastic at 93.9 continued to stay in the very strong zone. The indicators are reflecting the very bullish sentiments of the key index.

As it was pointed out in previous reports that when the index breaks above the 1280 level, it might trigger a rally towards the 1300 level, it has come true. The short and long term trend of the index is up, while the medium term is sideway.

With the positive sentiments remained in place on positive expectation of the improving economy and the soon-to-be-unveiled new economic model, it may provide a strong catalyst for Bursa Malaysia to move higher. The key index might continue to move upward to challenge higher targets at 1332, 1344 and 1355 in weeks to come.

Today, the FBM KLCI is likely to trade within a range of 1308 to 1339.

This week's expected range: 1260 – 1330
Today’s expected range: 1308 – 1339

Resistance: 1329, 1334, 1339
Support: 1308, 1316, 1320

FBM KLCI - poised to re-test 1308

Stocks on Bursa Malaysia closed sharply higher last Friday with the benchmark FBM KLCI surging 15.69 points to close at 1299.78, the highest level since January 25, 2010. On a weekly basis, the FBM KLCI gain 29 points or 2.28% from 1270.78 the previous Friday. The week's turnover increased to 4.42 billion shares valued at RM7.636 billion from 2.78 billion shares valued at RM4.98 billion the previous week.

Last week, the market started off on high note, bolstered by announcement of the country's better than expected fourth quarter economic growth of 4.5% last year. However, the market drifted lower on Wednesday and Thursday ahead of Bank Negara Malaysia''s monetary policy committee meeting on Thursday evening. This follows by Thursday’s announcement of an increase in the overnight policy rate (OPR) to 2.25% which was within expectation against the backdrop of an improving economy. Gains in banking stocks, led by Maybank, propelled the market indices.

On the weekly chart, the FBM KLCI formed a bullish white candlestick which staged a breakout from the 1280 resistance level posted by the 10-week moving average. It was mentioned in last week’s report that a break above the 1280 level will lead into a re-test of the 1300 level, in fact, it did. The 10-week MA has all this while supported the bull-run of the FBM KLCI from 840 points, since April, 2009 to current level of 1300. Hence, with the bullish close last week above the 10-week MA, the FBM KLCI may continue to rise further to re-test the high of 1308.52 registered on January 21, 2010, and if successfully break through, it may move on the test the 1340 level in weeks to come.

Weekly MACD has started to curve up with its histogram turning shorter, indicating a pickup in upward momentum of the benchmark index. Weekly RSI(14) at 66.9 continued to move higher in the bullish zone. Weekly Stochastic at 61 has crossed its 50 level, indicating a continuation of the upward strength.

The short term trend is up as indicated by the 5-week MA which has started to curve up, albeit still below the 10-week MA. The medium term trend is sideway, while the underlying long term trend of the FBM KLCI remained up.

With positive expectation on the improving economy and the soon-to-be-unveiled new economic model may provide a strong catalyst for the local stock market.

This week the FBM KLCI is likely to trade within a range of 1260 to 1330, and for today it is likely to trade within a range of 1286 to 1312.

This week's expected range: 1260 – 1330
Today’s expected range: 1286 – 1312

Resistance: 1304, 1308, 1312
Support: 1286, 1293, 1296

Stock to watch: BSTEAD, D&O

FBM KLCI - may corrects further

Stocks on Bursa Malaysia ended mostly lower yesterday in a directionless trading as the market turned cautious ahead of Bank Negara's monetary policy committee meeting yesterday evening. The FBM KLCI stayed within a tight range before closing 2.01 points or 0.16% lower at 1284.09. Losers led gainers by 385 to 281 while 282 counters were unchanged. Volume slipped lower to 726 million shares worth RM1.267 billion.

As expected in yesterday’s report, the FBM KLCI stayed weak and formed a bearish small black candlestick which indicates consolidation with a downward bias. The key index may correct further downward, and may find support at 1270 level.

MACD turned flat with its histogram turning shorter, RSI continued to moved lower and Stochastic has just crossed its slow Stochastic. Signals from the indicators are reflecting the correction mode of the index.

The FBM KLCI may find its immediate support at 1280, if this level can’t hold, then it may move lower to the next lower support level at 1271. The underlying short and long term trend is up, whereas the medium term trend is sideway.

Today, the FBM KLCI is likely to trade within a range of 1276 to 1291

This week's expected range: 1245 – 1295
Today’s expected range: 1276 – 1291

Resistance: 1287, 1289, 1291
Support: 1276, 1280, 1282

FBM KLCI - taking a breather

Stocks on Bursa Malaysia drifted sideways to lower for most part of yesterday. The FBM KLCI opened higher but slipped into the negative territory to close 1.97 points or 0.15% lower at 1286.10, dragged down by profit-taking in key heavyweights. Market breadth was negative throughout the day with losers led gainers by 402 to 294 while 270 counters were unchanged at the close. Volume was marginally higher at 863 million shares worth RM1.510 billion.

Chart wise, the FBM KLCI formed a bearish engulfing candlestick which indicates selling pressure was heavy and confirmed the bearish signals indicated by the shooting-star candlestick formed the day before. The key index rise to the intra-day high of 1292.35 but was sold down to close lower, signifying the presence of strong resistance at 1292 level.

MACD continued to move higher into the positive territory indicating the increased in upward momentum. RSI(14) at 62.5 hooked down slightly but still in the bullish zone. Stochastic continued to stay flat but remained in the very strong zone. Mixed signals from the indicators signify that the index may correct or consolidate.

The underlying short and long term trend is up, whereas the medium term trend is sideway at the moment. The benchmark index may find immediate support at 1280 and a stronger support at 1272 level.

The market may trade cautiously today while waiting for the announcement on monetary policy decision by Bank Negara, and from the technical side, the FBM KLCI may take a breather first before revisiting the 1300 level.

Today, the FBM KLCI is likely to trade within a range of 1275 to 1299

This week's expected range: 1245 – 1295
Today’s expected range: 1275 – 1299

Resistance: 1291, 1296, 1299
Support: 1275, 1279, 1283

FBM KLCI - shooting-star in formation

Stocks on Bursa Malaysia closed mixed yesterday with gains in key heavyweights sustaining the markets in positive territory. The FBM KLCI opened 3 points higher and hit the intra-day high of 1292.81 with a gain of 9.41 points before profit-taking activities trimmed gains to closed 4.67 points or 0.36% higher at 1288.07. Market breadth was negative with 405 losers to 323 gainers while 252 counters were unchanged. Volume was lower at 839 million shares worth RM1.549 billion compared with 1.051 million shares valued at RM1.746 billion on Monday.

Chart wise, the FBM KLCI formed a shooting-star like candlestick which is a top reversal signal. It, however, requires one more day’s candle to confirm the signal. The appearance of this candlestick after a number of days of run up indicates the surfacing of strong intra-day profit-taking activities, and might cause a reversal if the selling continues. The benchmark index is now faced with another resistance zone at 1290 to 1300.

MACD continued to move higher and has just crossed the zero line into the positive territory indicating the correction was over. RSI(14) at 64 continued to move higher in the bullish zone. Stochastic has turned flat, but remained in the very strong zone.

The key index has now turned positive, and the short term trend remained up with the 5-day moving average (MA) continued to stay above the 10-day MA. The medium term trend as indicated by the 30 and 60-day MA is sideway, whereas the long term trend is up.

The benchmark FBM KLCI is poised to re-visit the 1300 target after it clears off the selling in the resistance zone.

Today, the FBM KLCI is likely to trade within a range of 1270 to 1293

This week's expected range: 1245 – 1295
Today’s expected range: 1278 – 1299

Resistance: 1292, 1296, 1299
Support: 1278, 1282, 1285

FBM KLCI - turning bullish

Stocks on Bursa Malaysia closed mostly higher yesterday led by gains in key heavyweights. Sentiments were boosted by gains in key heavyweights, positive economic data and overnight gains on Wall Street. The FBM KLCI gained 12.62 points or 1% to close at 1283.40. Losers outpaced gainers by 398 to 355 while 233 counters were unchanged. Volume increased to 1.051 billion shares worth RM1.746 billion.

The FBM KLCI continued its upward move after opening 5.74 points higher. It breaks through the resistance zone of 1275 to 1280 convincingly on increased volume and formed a bullish white candlestick. It is poised to move higher to challenge the next level of resistance at 1288.

MACD continued to move higher indicating the continued gained in upward momentum. RSI (14) at 61.8 continued to stay bullish. Stochastic at 93.2 remained very strong and further upside is expected.

With the FBM KLCI closing above the 30 and 60-day moving averages (MA), the benchmark index has turned bullish. The short term 5 and 10-day MA too are pointing northeast and about to cross the medium term 30-day MA. The underlying longer term 120 and 200-day MAs continued to stay uptrend.

With the positive indications, the benchmark FBM KLCI is poised to move higher to re-test the 1300 level in a week or two.

Today, the FBM KLCI is likely to trade within a range of 1270 to 1293

This week's expected range: 1245 – 1295
Today’s expected range: 1270 – 1293

Resistance: 1287, 1290, 1293
Support: 1270, 1273, 1278

FBM KLCI - poised to move higher

The month of February was indeed a roller coaster month for Bursa Malaysia as sentiments was weighed down by external factors such as China’s move to tighten liquidity, Greece’s sovereign debt woes and US raising the discount rate.

Last week, sentiment on Bursa Malaysia was buoyed by the stronger than expected GDP growth in the last three months of 2009, where Malaysia’s GDP grew 4.5% y-o-y in the fourth quarter of 2009.

The FBM KLCI registered a gain of 13.11 points or 1.04% w-o-w to close the week at 1270.78 after hitting an intra-week high of 1277.66 on Thursday. Weekly turnover increased to 2.78 billion shares valued at RM4.98 billion from 1.767 billion shares valued at RM3.175 billion end of the previous week.

On the weekly chart, the FBM KLCI formed a bullish white candlestick and continued to move higher. It tested the resistance zone from 1265 to 1278 last week when it charted an intra-week high of 1277.66 before pulling back on profit-taking to close at 1270.78. The benchmark index has closed above the 5-week moving average (MA), but was still capped by the 10-week MA at 1272, while the underlying 30-week MA continued to give support at 1245.

Weekly MACD continued to slide lower but the histogram has turned shorter, indicating the slowing of the downward momentum. Weekly RSI(14) at 61 has move back to the bullish zone from the mildly bullish zone three weeks ago. Stochastic has just crossed its slow stochastic indicating there could be more upside to come. Signals from the indicators are indicating that the index is slowly turning bullish from its earlier bearish outlook.

On the daily chart, the short term trend of the FBM KLCI is up, the medium term trend is sideway and the longer term trend is still up. The benchmark index is now capped by the resistance zone from 1275 to 1280 on top, and supported below at 1245 to 1260. If it is able to break above the 1280 level convincingly with good volume, it might rally to re-test the 1300 level. If it breaks below the 1245 level, then it might move downward to test the support at 1224.

For this week, the FBM KLCI is likely to trade within a range of 1245 to 1295, and for today it is likely to trade within a range of 1260 to 1285.

This week's expected range: 1245 – 1295
Today’s expected range: 1260 – 1285

Resistance: 1275, 1280, 1285
Support: 1260, 1265, 1268