Stocks on Bursa Malaysia ended mixed yesterday with mild profit taking on selected heavyweights. Sentiment was firmer with investors appeared to have shrugged off concerns over the Goldman Sachs suit which triggered the sell off on Monday. The FBM KLCI opened 2.17 points higher at 1338.07 and touched the intra-day high of 1339.15 before profit-taking activities sent the benchmark index into the negative territory to close 2.26 point or 0.17% lower at 1333.64. Market breadth was positive throughout the day. At the close, gainers led losers by 399 to 288 with 300 counters traded unchanged. Volume improved slightly to 875 million shares valued at RM1.292 billion.
Chart wise, the price action of the FBM KLCI formed a bearish dark cloud cover candlestick pattern which indicates sellers were dominant. With this formation, the key index is expected to continue its consolidation, and may find immediate support at the 1330 level.
MACD continued to move lower indicating the downward momentum is still dominant. RSI(14) at 57 again hooked down, and is still in the mildly bullish to neutral zone. Stochastic at 45.5 continued to move lower, indicating the correction cycle is still in place.
The FBM KLCI is now resting on the 5-day moving average (MA), but is just below the 10-day MA, hence, it may faced some continued selling pressure form the short term players. The 20-day MA may provide some support to the key index at 1331, and the crucial support lies at the 30-day MA which is at 1322 currently. The underlying longer term trend is, however, still up
The benchmark FBM KLCI may continue to be in consolidation mode while some second and third liners may continue to be in rotational play.
Today, the FBM KLCI is likely to trade within a range of 1325 to 1344.
This week's expected range: 1308 – 1358
Today’s expected range: 1325 – 1344
Resistance: 1338, 1341, 1344
Support: 1325, 1329, 1331
Stock to watch: JCY
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