Stocks on Bursa Malaysia ended broadly lower yesterday on profit-taking with glove makers topping the losers list. The FBM KLCI ended 5.09 points or 0.38% lower at 1,334.52 after opening 1.24 points higher at 1,340.85. Losers outpaced gainers by 494 to 238 while 260 counters were unchanged. Volume traded stood at 1.027 billion shares worth RM1.413 billion.
The FBM KLCI opened higher following Dow’s overnight closing above 11,000 marks, the key index, however, succumbed to selling pressure and move lower for the rest of the day. Chart wise, it formed a bearish engulfing candlestick chart pattern which indicates heavy selling pressure. It has now closed below the 5 and 10-day moving average, and more downside for the short term is expected.
MACD continued to move southward and has just cross below its slow MACD indicating a pickup in downward momentum. RSI(14) at 61.78 has hooked down and is at the lower side of its bullish zone. Stochastic at 73.42 continued to move lower, indicating the correction cycle is in place.
If the key index closed below the 1330 level, the short term down trend is confirmed, whereas the medium and longer term underlying trend remained up. Immediate support for the key index lies at 1330, if this level couldn’t hold, it may retrace to the 1318 to 1321 support zone.
Today, the FBM KLCI is likely to trade within a range of 1324 to 1348.
This week's expected range: 1312 – 1363
Today’s expected range: 1324 – 1348
Resistance: 1339, 1344, 1348
Support: 1324, 1329, 1332
An update of the stock picks:
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