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
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