Stocks on Bursa Malaysia ended mixed yesterday in line with regional markets performance. The FBM KLCI opened 0.34 point lower and surged to an intra-day high of 1341.52, gaining almost 7 points on technical rebound but pulled-back to close the day 1.37 points or 0.1% higher at 1335.89 on strong profit-taking activities. Gainers led losers by 375 to 325 while 282 counters were unchanged. Volume shrank to 845 million shares worth RM1.364 billion.
Chart wise, the FBM KLCI formed an inverted-hammer candlestick, which indicates a temporary bottom at 1334. The benchmark index remains trapped in a sideways trading range of 1331 to 1344 over the last five days due to a lack of positive driving factors in the local market to push it higher.
MACD had made a dead cross over its slow MACD indicating the continued waning of the momentum and consolidation of the key index. RSI(14) at 62.55 has hooked up and is mildly bullish. Stochastic at 71.05 continued to move lower indicating the correction or consolidation cycle is not over yet. Signals from the indicators shows that the key index may continue to be in consolidation mode.
The FBM KLCI is in a consolidation mode for the short term with immediate support at 1330 and overhead resistance at 1344 to 1354. The underlying medium and longer term trend is, however, still up.
The benchmark index is likely to continue its consolidation while the second and third liners will be on rotational play.
Today, the FBM KLCI is likely to trade within a range of 1326 to 1349.
This week's expected range: 1312 – 1363
Today’s expected range: 1326 – 1349
Resistance: 1340, 1345, 1349
Support: 1326, 1330, 1333
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