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
No comments:
Post a Comment