Stocks on Bursa Malaysia ended firmer yesterday as the market continued to profit-take during the day. The FBM KLCI traded in a narrow range and bounced between the positive and negative territories through the day before closing 1.22 points or 0.09% higher at 1320.57. Market breadth was negative with losers outpaced gainers by 441 to 275 while 274 counters were unchanged. Volume fell to 961.37 million shares worth RM1.54 billion from 1.046 billion shares worth RM1.33 billion on Tuesday.
Chart wise, the FBM KLCI formed a small body candlestick with lower shadow which indicates consolidation. The benchmark index is support below by the 5-day moving average at 1317, albeit it had penetrated the MA on intra-day. If this level can’t hold, then it might further correct downward to the 1308 level.
MACD continued to move higher but on a slow pace indicating weak upward momentum. RSI(14) at 64.9 is almost flat. Stochastic continued to climb higher indicating the short term up cycle is still intact.
The underlying short, medium and long term trend as indicated by the moving averages remained up. However, signals from the various indicators indicated that the index might continue to consolidate or correct downward, while rotational play on lower liners and selected GLCs may prevail.
Today, the FBM KLCI is likely to trade within a range of 1313 to 1326.
This week's expected range: 1277 – 1339
Today’s expected range: 1313 – 1326
Resistance: 1322, 1324, 1326
Support: 1313, 1315, 1318
Stock to watch: MPHB
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