Stocks on Bursa Malaysia ended mixed yesterday on profit-taking after two days of rebound. The benchmark FBM KLCI, however, managed to break and stayed above the 1340 resistance level to close 6.75 points or 0.51% higher at 1340.72. Losers led gainers by 399 to 302 while 272 counters were unchanged. Volume traded was lower at 781 million shares worth RM1.343 billion.
Chart wise, the FBM KLCI formed a bullish white candlestick which pierced through the various short terms, i.e. 5, 10 and 30-day moving averages which formed the overhead resistance. It also closed the down gap formed four days ago. With this steady up move, the key index is expected to move higher to re-test the recent high of 1349.
MACD has hooked up after four days of downward sliding, indicating a possible reversal of the downward momentum. RSI(14) at 56.98 continued to move higher and has turned mildly bullish. Stochastic at 58.99 has also hooked up and crossed above its slow Stochastic, signaling a possible beginning of another up cycle. Confluence of the indicators signals point to a possible further upside for the FBM KLCI.
Now, the short term trend of the key index has just turned up, with the underlying medium and longer term trend continue to stay up.
Immediate overhead resistance zone of the FBM KLCI remained at 1349 to 1354 with 1350 as the key psychological resistance level. If the key index is able to break above the 1350 level, it might trigger a short term rally. The underlying immediate support zone remained at 1330 to 1324.
The FBM KLCI may continue to stay within the current trading range of 1324 to 1349 as many investors may stayed on the sidelines ahead of Malaysia's first quarter gross domestic product figure which is expected to be out by end of this week.
Today, the FBM KLCI is likely to trade within a range of 1325 to 13501
This week's expected range: 1283 – 1367
Today’s expected range: 1325 – 1351
Resistance: 1344, 1348, 1351
Support: 1325, 1329, 1335
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