Stocks on Bursa Malaysia ended mixed yesterday in tandem with regional markets performance. Most stocks rebounded in the morning session taking cue from Wall Street’s rebound on last Friday, but profit-taking activities trimmed gains. The FBM KLCI opened 2.41 points better at 1,336.39 and touched the intra-day high of 1344.12 before profit-taking trimmed gains to close 5.63 points or 0.42% higher at 1339.61. Gainers and losers are almost equal at 374 to 369 while 265 counters were unchanged. Volume traded was lower at 1.206 billion shares worth RM1.658 billion.
Chart wise, the FBM KLCI formed a white candlestick with long upper shadow, its shadow indicated the resistance that the index faces when it came into the resistance zone of 1344 to 1354. However, with a strong rebound yesterday, the key index is expected to re-challenge the recent high of 1347 and the psychological barrier of 1350 soon.
MACD continued to move lower but is still above its slow MACD, indicating the reduction in upward momentum and the correction mode but is still bullish. RSI(14) at 66.5 has hooked up and is still in the bullish zone. Stochastic at 75.33, however, continued to move lower and has crossed below the 80 level, reflecting the short term correction mode of the index.
The FBM KLCI is now resting on the 5-day moving average (MA) and is still above the 10-day MA which is now at 1334 which gives support to the short term uptrend of the index. The medium and long term uptrend is very much intact.
The current overhead resistance of the key index is at 1344 to 1354, if the index is able to successfully break through this zone, it will challenge the next target level of 1380. The underlying support lies at 1330, 1315 and 1300.
Today, the FBM KLCI is likely to trade within a range of 1328 to 1352.
This week's expected range: 1312 – 1363
Today’s expected range: 1328 – 1352
Resistance: 1344, 1348, 1352
Support: 1328, 1332, 1336
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