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
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