Stocks on Bursa Malaysia closed mixed yesterday with profit-taking trimming gains on those stocks that have risen in the past few days. The FBM KLCI continued to close higher with a gain of 2.62 points or 0.2% to end the day at 1344.37. Most of the index’s gains came from TENAGA which rose RM0.28 or 3.5%. Gainers led losers by 406 to 369 while 288 counters were unchanged. Volume traded is higher at 1.122 billion shares worth RM1.545 billion.
The FBM KLCI was very much in the profit-taking mode yesterday. It rose as much as 4.5 points in the morning session hitting the high of 1346.23, but profit-taking push the index to slide lower for most part of the day before last minute buying lifted it to close higher. The price action of the benchmark index formed a Spinning Top candlestick which indicates a possible pause to the current uptrend which has run for 11 trading days consecutively.
MACD continued to move higher. RSI(14) is higher at 74.9, is very bullish. Stochastic is also higher at 97.6, but is tapering off. The oscillators are indicating a short term overbought conditions, and the index may take a breather.
The index has entered the resistance zone of 1344 to 1354, and may try to challenge the 1350 psychological level. The underlying short, medium and long term trend of the benchmark index is up.
The general market may continue to be in a rotational play while the index may consolidate, any short term correction should be viewed as an opportunity to accumulate quality stocks at lower price level.
Today, the FBM KLCI is likely to trade within a range of 1335 to 1352.
This week's expected range: 1297 – 1361
Today’s expected range: 1335 – 1352
Resistance: 1347, 1349, 1352
Support: 1335, 1338, 1341
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