Stocks on Bursa Malaysia ended steadier yesterday, recovering some lost ground following the fall in the previous day, aided by the positive close of the Dow overnight. The FBM KLCI traded in a very narrow range but was in the positive territory throughout the day and closed 2.69 points or 0.2% higher at 1335.86. Losers led gainers by 363 to 347 while 279 counters were unchanged. Volume stayed around 898 million shares valued at RM987 million.
Chart wise, the FBM KLCI formed a bullish white candlestick which is a follow-through up move from the previous day’s price action. The key index is back into its consolidation zone, and was met with resistance at the 1337 level, as mentioned in yesterday’s report. It may continue to drift in the consolidation zone while waiting for any market moving positive leads.
MACD continued to slide lower reflecting the current consolidation mode of the key index. RSI(14) at 56.4 rebounded slightly, is still in the neutral zone. Stochastic, however, has hooked down and just crossed its slow Stochastic. Mixed signals from the indicators reflected the consolidation mode of the benchmark index.
For the short term, the FBM KLCI is expected to be in sideways consolidation, while the underlying medium and longer term trend still remained up.
The FBM KLCI is bound on top by the immediate resistance zone at 1340 to 1347; it will need some extra market moving impetus to breakthrough this zone to move to a higher level. The key index is supported below at 1328 to 1330.
In view of a lack of market moving impetus, the benchmark FBM KLCI will continue its consolidation and track the performance of regional bellwether indices, while the second and third liners will be on rotational play.
Today, the FBM KLCI is likely to trade within a range of 1329 to 1341.
This week's expected range: 1308 – 1358
Today’s expected range: 1329 – 1341
Resistance: 1337, 1339, 1341
Support: 1329, 1331, 1333
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