Stocks on Bursa Malaysia ended mixed on rotational play in selective heavyweights and lower liners yesterday in the absence of fresh leads. The FBM KLCI rose 3.37 points or 0.25% to close at 1337.01 after drifting in and out the positive and negative territory the whole day. Gainers led losers by 333 to 307 while 324 counters were unchanged. Volume traded was marginally lower at 833 million shares valued at RM1.189 billion.
Chart wise, the FBM KLCI formed a bullish candlestick known as piercing line pattern, which indicates counter attack of the bull. Nevertheless, the key index is still remained trapped in the sideways range of 1330 to 1344.
MACD continued to move lower but at a slower pace as indicated by its slightly shorter histogram, indicating a state of consolidation. RSI(14) at 59.3 has rebounded slightly, is still in the mildly bullish zone. Stochastic, however, has hooked up and cross-over its slow Stochastic after its down cycle started on 8th April, indicating the possible beginning of an uptrend cycle.
The FBM KLCI has now closed above its short term 5 and 10-day moving average, but it need a bigger effort to breakout from its current sideways range in order to trigger another uptrend to challenge the 1350 psychological resistance level. The underlying medium to longer term trend remained up.
In the absence of strong fresh leads, the FBM KLCI is expected to remain in a range-bound state with rotational play on selective second and third liners.
Today, the FBM KLCI is likely to trade within a range of 1328 to 1343.
This week's expected range: 1308 – 1358
Today’s expected range: 1328 – 1343
Resistance: 1339, 1341, 1343
Support: 1328, 1330, 1333
Stock to watch: WCT
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