FBM KLCI - top reversal signal

Stocks on Bursa Malaysia ended broadly lower in tandem with the weak performances of regional markets, as market sentiment turned negative on renewed economic concerns and the sharp fall in China's stocks. The benchmark FBM KLCI fell 5.7 points or 0.43% to close at 1,319.84, after opening 0.66 point higher at 1,326.20. Losers outnumbered gainers by 514 to 175 while 252 counters were flat. Turnover, however, increased to 741 million shares worth RM1.059 billion from 535 million shares worth RM778 million on Monday.

The FBM KLCI opened 0.66 point higher and surged to the intra-day high of 1331.09 in the first fifteen minutes, and profit-taking activities came in thereafter to send the index lower as the day progressed, it hit the intra-day low of 1,315.82 before rebounding to close off-low. This led to the formation of a bearish engulfing candlestick, a top reversal signal, the key index is expected to correct downward further. The key index has now closed below the 5 and 10-day moving averages (MA), and is expected to move lower in the immediate term to test the lower support zone of 1300 to 1318.

MACD has started to hook downward, and the histogram continued to turn shorter, indicating a confirmed change in the direction of the momentum from up to down. RSI(14) at 55.5 fell lower into the neutral zone. Stochastic at 76.2 has crossed below the 80 level, confirming the beginning of the short term down cycle of the FBM KLCI.

The FBM KLCI is expected to correct downward after a month long rally from the recent bottom it registered on May 27th. It will re-test the support zone of 1300 to 1318, with key support levels at 1300, 1308 and 1315.

The short term trend of the FBM KLCI is starting to turn downward, the medium term trend is sideways, while the long term trend of the key index remained up.

Overnight, the Dow closed -268.22 points or -2.65% lower at 9,870.30. Today the FBM KLCI is likely to trade within a range of 1298 to 1331.

This week's expected range: 1293 – 1352
Today’s expected range: 1298 – 1331

Resistance: 1323, 1328, 1331
Support: 1298, 1307, 1313

FBM KLCI - quiet market

Stocks on Bursa Malaysia closed easier on thin trading yesterday. The FBM KLCI traded in a narrow range, moving between 1,323.62 and 1,326.06 before closing 0.91 point or 0.07% lower at 1325.54. Losers led gainers by 340 to 277 while 240 counters were unchanged. Volume decreased to 535 million shares worth RM778 million from 568 million shares valued at RM922 million last Friday.

Chart wise, the FBM KLCI formed a small dragon-fly Doji candlestick, which indicates consolidation and low volatility. As it was mentioned in previous analysis, the key index is now trapped in a consolidation zone with overhead resistance zone at 1330 to 1350 and an immediate support zone at 1300 to 1318. It might continue to drift within a narrow range.

MACD moved higher, but tapering-off with its histogram turned shorter, indicating a reduction in the upward momentum, and reflecting the current consolidation mode of the key index. RSI(14) at 59.4 is marginally lower and has slipped into the mildly bullish zone. Stochastic at 81.8 is slipping lower, albeit still above the 80 level, reflecting the current consolidation mode of the key index.

The FBM KLCI is currently closing below its very short term 5-day moving average, but is still above its short term 10-day MA, hence, short term the FBM KLCI is likely to move sideways. The underlying long term uptrend remained intact.

In view of the diminishing volume, the market is likely to remain quiet for a while and will continue to track the performance of regional markets. Overnight, the Dow closed -5.29 points or -0.05% lower at 10,138.52. Today the FBM KLCI is likely to trade within a range of 1320 to 1330.

This week's expected range: 1293 – 1352
Today’s expected range: 1320 – 1330

Resistance: 1326, 1328, 1330
Support: 1320, 1322, 1324

FBM KLCI - likely to be range-bound with a downward bias

Stocks on Bursa Malaysia went into a consolidation mode last week, after the FBM KLCI surged on last Monday in response to China's move to allow more flexibility in the Yuan exchange rate. Week-on-week, the FBM KLCI went up by 8.76 points to close at 1,326.45 on last Friday compared with 1,317.69 the previous Friday. Weekly turnover increased to 3.596 billion shares worth RM5.733 billion, up from 2.731 billion shares valued at RM4.486 billion the previous week.

The benchmark index opened the week with an up gap and hit the intra-week high of 1,335.31 on last Monday, it went into a consolidation mode thereafter due to profit-taking activities. It hit the intra-week low of 1,318.52 on last Wednesday, but rebounded quickly. On Thursday, the key index managed to hit the intra-day high of 1,333.49, but could not sustain the selling pressure and closed at the low of the day. And on last Friday, the key index was trading in a tight range in the negative territory throughout the day, but managed to close marginally higher by 0.58 point or 0.04% at 1,326.45 despite a bearish performance in most regional bourses.

On the weekly chart, the FBM KLCI formed a shooting-star like candlestick, a top reversal signal, which indicates selling pressure and distribution faced by the key index when it enters the resistance zone of 1330 to 1350. Hence, it might further correct downward if there’s no new impetus to support the short term uptrend. On the daily chart, the key index formed a pennant chart pattern, which reflected the correction and consolidation after last Monday’s up move. Technically, to continue the uptrend, the key index need to breakout from the consolidation and move above the recent high of 1335, then, there’s a good chance for it to re-test the 1350 level. On the other hand, if the key index continues to correct downward, then, it might form a head-and-shoulder pattern, which is a longer term top reversal chart pattern, and its formation can be quite bad for the FBM KLCI.

Weekly MACD was up marginally but is still below its weekly trigger-line, and its weekly histogram turned shorter upward, indicating a reduction in the downward momentum but has not fully turned bullish from the weekly perspective. Daily MACD continued to move higher, but its daily histogram turned shorter downward, indicating a reduction in the daily upward momentum. Weekly RSI(14) at 59 continued to move higher towards the bullish zone. Daily RSI(14) at 60 has however, turned flat reflecting the consolidation mode of the key index. The RSI is somehow at the borderline zone. Weekly Stochastic at 65 continued to move higher reflecting the short term technical rebound of the key index, while the daily Stochastic at 85 has crossed below its slow Stochastic and is in the short term overbought zone, and a break below the 80 mark will lead the key index into down cycle.

Currently, the short and longer term trend of the FBM KLCI is heading up, while the medium term trend is likely to be sideways. The benchmark index is now bound on top with a strong overhead resistance zone at 1330 to 1350, while its immediate downside support is at 1300 to 1318.

With no major market impetus, the benchmark FBM KLCI is likely to continue its sideways consolidation mode with a downward bias, and will track the performance of the regional markets.

The Dow closed -8.99 points or -0.09% lower on last Friday at 10,143.81. This week, the FBM KLCI may trade within a range of 1293 to 1352, and for today it is likely to trade within a range of 1318 to 1331.

This week's expected range: 1293 – 1352
Today’s expected range: 1318 – 1331

Resistance: 1328, 1329, 1331
Support: 1318, 1320, 1323

FBM KLCI - lower on profit taking

Stocks on Bursa Malaysia ended lower after a range-bound trade yesterday with investors locking in profits or reducing their holdings after the recent run up. The FBM KLCI closed 3.83 points or 0.29% lower at 1,325.87. It had opened 2.01 points lower at 1,327.69 and moved between the 1,325.71 and 1,333.49 levels yesterday. Losers led gainers by 332 to 318, while 294 counters were unchanged. Volume traded was slightly higher at 749 million shares worth RM1.076 billion compared with 684 million shares worth RM1.118 billion on Wednesday.

The FBM KLCI had opened 2.01 points lower and gradually recovered its lost ground to be back into the positive territory near mid day, however, sellers surfaced and pushed the key index back into the negative territory to close near the lowest point of the day. The price action led to the formation of an inverted-hammer like candlestick, which is a top reversal signal when it forms at the higher end of the chart. As it was mentioned before, the key index is now bound with a strong overhead resistance zone at 1330 to 1350; and an immediate support zone at 1300 to 1320. Hence, the key index might continue to move sideways with a downward bias in the current range.

MACD continued to move higher but at a reduced rate, as shown by its shorter histogram, which indicates a reduction in the upward momentum. RSI(14) at 59.7 has hooked downward, and is back into the mildly bullish zone. Stochastic at 84.1 has crossed below its slow stochastic and moved lower, might possibly indicate the beginning of a down cycle, it will be confirmed if the Stochastic cross below the 80 level. Signals from the indicators point towards possible further correction or consolidation of the benchmark FBM KLCI.

The FBM KLCI has now closed below the 5-day moving average (MA), which indicates the key index has turned weak for the short term, hence, might corrects further downward. However, the 60-day MA at 1318 and the 10-day MA at 1313 might provide some support to the down move. Nonetheless, the underlying short term trend is still up for the time being, medium trend is sideways, while the long term trend remained up.

In view of a lack of fresh leads locally, the benchmark FBM KLCI is expected to continue tracking the performance of regional bourses. Overnight, the Dow closed -145.64 points or -1.41% lower at 10,152.80. Today, the FBM KLCI is likely to trade within a range of 1313 to 1336.

This week's expected range: 1279 – 1349
Today’s expected range: 1313 – 1336

Resistance: 1328, 1331, 1336
Support: 1313, 1318, 1322

FBM KLCI - formation of piercing line reversal candlestick

Stocks on Bursa Malaysia ended firmer yesterday after opening lower, with the benchmark FBM KLCI recouping its earlier losses as large cap stocks staged a late rebound. The FBM KLCI rose 6.26 points or 0.5% to close at 1,329.70, after touching the intra-day low of 1,318.52, it had opened 1.39 points lower at 1,322.05. Gainers led losers by 360 to 275 while 271 counters were unchanged. Overall volume improved slightly to 684 million shares worth RM1.118 billion compared with Tuesday's 672 million shares worth RM1.099 billion.

Taking cue from the 149 points loss of the DJIA overnight, the FBM KLCI opened 1.39 points lower at 1,322.05 and traded lower to hit the intra-day low of 1,318.52 before rebounding gradually to recoup its earlier losses, and a last minute buying in selected heavyweights helped pushed the key index to close in the positive territory. The price action of the FBM KLCI formed a piecing line candlestick pattern, which indicates reversal of the down move, and counter-attack of the buyers. As it was mentioned in yesterday’s analysis, the FBM KLCI indeed received a good support at 1318 level, and rebounded off it. With the formation of the reversal candlestick, the key index may continue to move higher today to re-challenge the overhead resistance zone of 1330 to 1350.

MACD continued to move higher after taking a pause, indicating the continuation of the upward momentum. RSI(14) at 62.2 has hooked up and is back to the bullish zone. Stochastic at 89.8 has crossed below its slow Stochastic, reflecting the pull-back, nonetheless, it is still above the 80 level, hence, the pull-back is just a mild correction.

The immediate short term trend as indicated by the 5 and 10-day MA continued to be trending up, the medium term trend as indicated by the 30 and 60-day MA is sideways, while the long term trend remained up.

The FBM KLCI will continue to track the performance regional markets on the lack of local fresh leads. Overnight, the Dow closed +4.92 points or +0.05% higher at 10,298.44. Today, the FBM KLCI is likely to trade within a range of 1315 to 1341.

This week's expected range: 1279 – 1349
Today’s expected range: 1315 – 1341

Resistance: 1333, 1337, 1341
Support: 1315, 1322, 1326

FBM KLCI - bearish Harami

Stocks on Bursa Malaysia ended broadly lower yesterday on profit-taking after a strong up move the day before, as bearish regional bourses also weighed down local investor sentiment. The FBM KLCI fell 11.85 points or 0.89% to close at 1323.44 after a 10-day winning streak; it had opened 1.09 points lower at 1,334.20. Losers outpaced gainers by 434 to 226 while 255 counters were unchanged. Volume was significantly lower at 672 million shares worth RM1.099 billion from 921 million shares worth RM1.515 billion on Monday.

The FBM KLCI opened 1.09 points lower at 1,334.20 and traded lower as the day progressed to close at the lowest point for the day, forming a bearish Harami candlestick, which indicates sellers were in control throughout the day. The appearance of this candlestick formation marked a pause to the 10 consecutive winning days of the benchmark index, and is a top reversal signal. After losing 98 points in nine consecutive days in May, the benchmark index has recovered 86 points in four weeks since late May.

MACD tapered off slightly as shown by the shorter histogram, indicating a pause in the upward momentum. RSI(14) at 59.7 has hooked down and is back to the mildly bullish zone, reflecting effect of the strong profit-taking move. Stochastic at 92.5 has also hooked down but still above its slow stochastic and is in the overbought zone. Signals from the indicators are pointing towards a possible further correction to the key index.

The FBM KLCI is now bound by a strong overhead resistance zone at 1330 to 1350 and an immediate support zone below at 1300 to 1320. The 5 and 60-day MA at 1316 and 1318 will provide immediate support if the key index corrects further. The underlying short and long term trend of the key index remained up, while the medium term trend is sideways.

In view of a lack of fresh leads locally, the FBM KLCI will continue to track the performance of regional bourses.

Overnight, the Dow closed -148.89 points or -1.43% lower at 10,293.52. Today, the FBM KLCI is likely to trade within a range of 1309 to 1338.

This week's expected range: 1279 – 1349
Today’s expected range: 1309 – 1338

Resistance: 1327, 1331, 1338
Support: 1309, 1316, 1320

FBM KLCI - turning bullish

Stocks on Bursa Malaysia rallied higher yesterday in tandem with strong performance of regional markets after China's move to allow more flexibility in the Yuan exchange rate boosted confidence in the global economy. The FBM KLCI surged 17.60 points or 1.34% to close at 1,335.29, after opening 3.09 points higher at 1,320.78. Gainers outpaced losers by 591 to 161 while 208 counters were unchanged. Volume increased substantially to 921 million shares worth RM1.515 billion from 537 million shares valued at RM1.16 billion last Friday.

The FBM KLCI opened with an up gap of 3.09 points and traded higher to close near the highest point for the day. It formed a bullish Marubozu candlestick which indicates buyers were in control for the day. The key index crossed a key resistance at 1320 easily when it opened with a gap at 1320.78. The benchmark index may continue to move higher today on follow through buying momentum; however, it may meet strong resistance when it comes close to the resistance zone at 1340 to 1350.

MACD continued to move higher and has crossed the zero-line into the positive zone, indicating the FBM KLCI has again turned bullish with a continued pick up in upward momentum. RSI(14) at 67.4 continued to surge higher into the bullish zone. Stochastic at 94.6 continued to move higher into the overbought zone, indicating the key index is full of strength. Signals from the indicators indicate a bullish state of the benchmark FBM KLCI, and it may move higher.

The short term trend of the FBM KLCI has turned up, and the longer term trend too remained up. As the benchmark index move higher, it is coming close to its strong resistance zone at 1340 to 1350, and active profit-taking activities is expected when the index move into this zone. The immediate downside support zone now lies at 1300 to 1320.

Speculation of China loosening the Yuan's peg to the US dollar should provide some short-term catalyst for the markets globally with trade tension easing on the back of the surprise announcement.

Overnight, the Dow closed -8.23 points or -0.08% lower at 10,442.41. Today, the FBM KLCI is likely to trade within a range of 1316 to 1349.

This week's expected range: 1279 – 1349
Today’s expected range: 1316 – 1349

Resistance: 1340, 1345, 1349
Support: 1316, 1325, 1330

FBM KLCI - moving higher

Stocks on Bursa Malaysia ended generally firmer last week in tandem with a firmer regional market performance following optimism that the impact of Europe debt crisis on the regional economy may be limited, and a new wave of optimism about the global economy's health.

The FBM KLCI ended last Friday at its intra-day high of 1,317.69, giving a single day gain of 13.22 points, or 1.01%. On a week-on-week basis, it gained 23.02 points or 1.78% from 1294.67 of the previous week’s close. Weekly turnover decreased to 2.731 billion shares worth RM4.486 billion from 2.878 billion shares valued at RM3.989 billion the previous week.

The FBM KLCI opened last week marginally lower, but registered gains for five consecutive days or throughout the week. The break through came on last Wednesday when it opened with an up gap of 4.77 points at 1303.14, crossing over the psychological resistance of 1300 without any struggle and finally closed the week at the intra-week high of 1317.69, with that, it has closed above the 10-week moving average (MA). This is an important breakthrough as the benchmark index normally turned bullish when it stays above the 10-week MA. On the chart, the key index formed a bullish white Marubozu candlestick on both its weekly and daily chart, which indicates a bullish outlook ahead.

Weekly MACD has turned flat, but its histogram has turned shorter, indicating a reduction in the downward momentum. The daily MACD, however, continued to surge higher, indicating the continued pick up in daily upward momentum. Weekly RSI(14) at 57.3 continued to move higher towards the bullish zone, whereas, daily RSI(14) at 60.4 has move into the short term bullish zone, hence, more upside is expected for the FBM KLCI. Weekly Stochastic at 55 has just crossed above the 50 level and its slow Stochastic, issuing a medium term bullish signal. The daily Stochastic at 89.1 is very strong for the short term and has again hooked up. Signals from the indicators are pointing towards a bullish outlook for the FBM KLCI, hence, it may continue to move higher.

With the strong closing of the FBM KLCI last Friday, all the technical indicators has turned positive, and the benchmark index is expected to continue charging higher. The short term trend has turned up, and the longer term underlying trend remained up.
The immediate overhead resistance zone now lies at 1320 to 1330, while the immediate underlying support is at 1290 to 1300.

With the mid-year school holiday over, the fund managers are back to work, and a positive outlook of the global economy, the FBM KLCI is expected to move higher this week.

The Dow closed +16.47 points or +0.16% higher on last Friday at 10,450.64. This week, the FBM KLCI may trade within a range of 1279 to 1349, and for today it is likely to trade within a range of 1298 to 1329.

This week's expected range: 1279 – 1349
Today’s expected range: 1298 – 1329

Resistance: 1321, 1325, 1329
Support: 1298, 1302, 1310

FBM KLCI - higher in narrow range trading

Stocks on Bursa Malaysia ended firmer yesterday amid mild profit-taking on stocks that have run up earlier, buying interests were seen in selected heavyweights and some lower liners. The FBM KLCI rose 1.34 points or 0.1% to close at 1304.47 after opening 1.37 points higher at 1,304.50. Gainers led losers by 295 to 277 while 294 counters were unchanged. Volume declined to 516 million shares valued at RM757 million from 662 million shares worth RM1.012 billion on Wednesday.

The FBM KLCI traded in a narrow range of 3 points but was in the positive territory throughout the day. It formed a Doji candlestick which indicates consolidation with an upward bias as the index continued to close higher.

MACD continued to move higher, indicating the continued pick up in upward momentum. RSI(14) at 53.3 is climbing higher into the mildly bullish zone. Stochastic at 87.84 has, however, hooked down reflecting the consolidation state of the benchmark index.

The FBM KLCI has now stayed above the 1300 psychological resistance level but continued to face with the overhead resistance zone at 1305 to 1320, while the immediate support zone is now at 1290 to 1300. The short term trend of the benchmark index has turned up, while the medium term trend maybe in the sideways as indicated by the medium term 60-day MA which is still flat, and the longer term trend remained up.

In view of a lack of fresh leads, the FBM KLCI is expected to continue its consolidation at current level, and will continue to track the performance of regional bourses.

Overnight, the Dow closed +24.71 points or +0.24% higher at 10,434.17. Today, the FBM KLCI is likely to trade within a range of 1299 to 1312.

This week's expected range: 1250 – 1324
Today’s expected range: 1299 – 1312

Resistance: 1306, 1308, 1312
Support: 1299, 1301, 1303

FBM KLCI - back to above 1300

Stocks on Bursa Malaysia ended broadly higher yesterday in tandem with a regional market rally, taking cue from the strong performance of Wall Street overnight. The FBM KLCI rose by 4.76 points or 0.36%, to close at 1,303.13 on active buying interests in selected heavyweights and blue-chips. Gainers beat losers by 494 to 174 while 240 counters were unchanged. Volume rose to 662 million shares worth RM1.012 billion from 511 million shares worth RM891.308 million the day before.

The FBM KLCI opened with an up gap of 4.77 points at 1303.14, and rose to the intra-day high of 1312.10 before profit-taking activities sent it to close off-high at level equal to the opening, forming a gravestone Doji candlestick. This indicates the buyers were initially dominant in pushing the price up and later the sellers surfaced and pressed the price down.

As mentioned in yesterday’s analysis, the level above 1300 is a resistance zone where the up move of the key index will face lots of hurdles. It is indeed true that the key index hit onto the 40-day moving average (MA) at 1312 before it retrace from the intra-day high. By closing above the 1300 level and the 30-day MA, which is at 1303 now, the FBM KLCI has turned bullish for the short term. It was indeed mentioned in yesterday’s analysis that “if the key index is able to cross this level at 1304 successfully, it might trigger a run towards 1320”.

MACD continued to climb higher, albeit below the zero-line, indicating a continued increase in the upward momentum. RSI(14) at 52.46 has crossed above the 50 level, indicating the FBM KLCI has returned to the bullish zone, even though it is still in the mildly bullish area. On the other hand, Stochastic at 90.5 is in the short term overbought zone, and has hooked down slightly, indicating a potential correction is expected ahead.

With the FBM KLCI closing above the 1300 level, the short term trend of the benchmark index has turned up, while the medium term trend maybe in the sideways as indicated by the medium term 60-day MA which is still flat, and the longer term trend remained up.

Overnight, the Dow closed +4.69 points or +0.05% higher at 10,409.46. Today, the FBM KLCI is likely to trade within a range of 1291 to 1321.

This week's expected range: 1250 – 1324
Today’s expected range: 1291 – 1321

Resistance: 1309, 1315, 1321
Support: 1291, 1297, 1300

FBM KLCI - marginally higher on range-bound trading

Stocks on Bursa Malaysia ended higher yesterday in quiet trading. The FBM KLCI finished 1.21 points or 0.09% higher at 1,298.37 after opening marginally higher at 1,297.26, it had been trading in a very tight range of less than 3 points throughout the day. Gainers led losers by 296 to 291 while 270 counters were unchanged. Volume rose marginally higher to 511 million shares valued at RM891 million from 502 million shares worth RM665 million on Monday.

Chart-wise, the FBM KLCI formed a small body white candlestick which indicates consolidation with an upward bias. The benchmark index is currently trapped in a range-bound mode, with overhead resistance zone at 1300 to 1320 and support zone at 1270 to 1290. The long term 120-day MA at 1299 continued to post as strong resistance, as for the last two weeks, the key index has failed to cross this hurdle in its attempts to move higher. The short medium term 30-day MA is currently at 1304, if the key index is able to cross this level at 1304 successfully, it might trigger a run towards 1320.

MACD continued to move higher, albeit below the zero-line, indicating a gradual pick up in upward momentum. RSI(14) at 49.6 is in the neutral zone, continued to move higher and is approaching the 50 level, if it crosses this level successfully, then the key index would turn bullish in the short term. Stochastic at 90.8 continued to move higher into the short term overbought zone, and is gaining strength.

The short term trend of the FBM KLCI is currently sideways with an upward bias, while the longer term trend remained up.

In view of the low trading volume over the last few day, the school holidays, and the focus on the FIFA world cup, the local market is expected to continue drifting sideways with an upward bias, and will track the performance of regional bourses.

Overnight, the Dow closed +213.88 points or +2.10% higher at 10,404.77. Today, the FBM KLCI is likely to trade within a range of 1293 to 1305.

This week's expected range: 1250 – 1324
Today’s expected range: 1293 – 1305

Resistance: 1299, 1302, 1305
Support: 1293, 1295, 1297

FBM KLCI - higher in quiet trading

Stocks on Bursa Malaysia ended higher yesterday in tandem with firmer regional markets and the strong finish on Wall Street last Friday. Sentiments remained cautious as evident from the low trading volume on the local bourse. The FBM KLCI ended 2.49 points or 0.19% higher to close at 1297.16 after opening marginally higher at 1294.89. Gainers led losers by 302 to 242 while 269 counters were unchanged. Volume traded remained thin at 502 million shares worth RM665 million.

The FBM KLCI opened marginally higher and traded in a narrow range of three points for most part of the day, and it formed a small white candlestick on the chart in Harami-like position, indicating low volatility with a positive bias. As mentioned in yesterday’s analysis, the benchmark index is likely to be range bound, and it did. Judging from the low volume, the market is likely to go sideways for sometimes.

MACD continued to move higher, albeit below the zero-line, indicates the momentum is picking up gradually. RSI(14) at 48.9 continued to move higher at a slow pace, is approaching the 50 level, the neutral line. Stochastic at 88.99 continued to move higher into the overbought zone. Signals from the indicators point towards a consolidation with an upward bias for the FBM KLCI.

The FBM KLCI is currently trapped in a range-bound situation with immediate overhead resistance at 1300 to 1320 and immediate support at 1270 to 1290. For the immediate short term, the key index is likely to remain in a sideways condition with an upward bias, the longer term trend, however, remained up.

Overnight, the Dow closed 20.18 points or 0.20% lower at 10,190.89. Today, the FBM KLCI is likely to trade within a range of 1289 to 1305.

This week's expected range: 1250 – 1324
Today’s expected range: 1289 – 1305

Resistance: 1299, 1301, 1305
Support: 1289, 1293, 1295

FBM KLCI - consolidation with an upward bias

Stocks on Bursa Malaysia were in consolidation last week after a rebound the previous week. The main highlight last week was the announcement of the 10th Malaysia Plan (10MP) on last Thursday which couldn’t excite the market, as its impact has already been discounted. The market, which opened the week lower, started to rebound ahead of the announcement of the 10MP, and stocks closed the week steadier across-the-board. The FBM KLCI gained 0.28 point or 0.02% week-on-week to close at 1294.67 on last Friday. Weekly turnover declined to 2.878 billion shares valued at RM3.989 billion from 3.328 billion shares valued at RM5.259 billion the previous week.

The FBM KLCI opened last week on a weak note at 1284.51 and touched the intra-week low of 1278.89 on last Monday, it gradually recovered its lost ground as the week progressed and hit the intra-week high of 1302.07 on last Friday before profit-taking activities pressed it lower to close the week off-high at 1294.67.

On the weekly chart, the benchmark index formed a bullish white candlestick which closed right above the 30-week moving average (MA) which is currently at 1292.80. This has significant importance as the 30-week MA has previously given support to the key index when it corrected in early February and help maintained the longer term uptrend. If the key index is able to stay above this long term MA in the near term, there is a good likelihood that it may re-challenge the 1300 psychological resistance level, and if successfully break-through, then it will move towards the next higher target level at 1320. The 1300 and the 1320 levels coincided with the 38.2% and the 23.6% Fibonacci levels as shown in the daily chart. On the other hand, if the benchmark index could not hold at this level and break below the immediate support at 1290, then it might move southward towards the 1270 level, which is where the 61.8% Fibonacci level and the 200-day MA meet.

Weekly MACD continued to move lower, but at a reduced pace, as shown by the histogram which has turned flat; daily MACD, however, continued to move higher, reflecting the current technical rebound state of the FBM KLCI. Weekly RSI(14) at 52 turned flat and is back into the neutral zone with a mildly bullish bias; whereas the daily RSI(14) at 47.5 continued to climb higher, is still in the mildly bearish zone. Weekly Stochastic has just hooked up but is still below the 50 level; whereas daily Stochastic at 81.5 continued to move higher, indicating the short term up-cycle remained intact, but it has just entered the short term overbought zone. Mixed signals from the weekly and daily indicators point towards short term consolidation with an upward bias for the benchmark FBM KLCI.

Short term, the FBM KLCI might continue to stay sideways with an upward bias, it is currently bound by the overhead resistance at 1300 to 1320, whilst its immediate downside support is at 1270 to 1290. The longer term trend, however, remained up.

In view of a lack of fresh leads locally after the announcement of the 10MP, the mid-year school holiday, and the FIFA world cup which has drawn much attention away from the stock market, the local bourse is likely to remain quiet and trade sideways, and will track the performance of the US and regional bourses.

The Dow closed 38.54 points or 0.38% higher on last Friday at 10,211.07. This week, the FBM KLCI may trade within a range of 1250 to 1324, and for today it is likely to trade within a range of 1285 to 1305.

This week's expected range: 1250 – 1324
Today’s expected range: 1285 – 1305

Resistance: 1297, 1300, 1305
Support: 1285, 1289, 1292

FBM KLCI - in consolidation mood

Stocks on Bursa Malaysia ended mixed yesterday after the announcement of the 10th Malaysia Plan as investors take profits. The FBM KLCI closed 1.23 points or 0.1% higher at 1,291.31 after opening 0.36 of point lower at 1,289.72. Losers led gainers by 280 to 261 while 290 counters were unchanged. Volume rose to 733 million shares worth RM743 million.

The FBM KLCI opened 0.36 points lower and gained about 3 points when it hit the intra-day high of 1293.27, profit-taking activities trimmed gains and sent the key index lower to close with just 1.23 points gain. The price action of the key index formed a white candlestick with small body and short upper shadow, which indicates a state of consolidation. The benchmark index is indeed trapped in a sideways consolidation mode for the last few days, with overhead resistance zone at 1295 to 1300 and support zone below from 1270 to 1280.

MACD continued to move higher, albeit below the zero-line, indicates a gradual pick up in the upward momentum. RSI(14) at 45.5 continued to move higher into the mildly bearish zone from the very bearish zone two weeks ago. Stochastic at 67.5 is gradually picking up strength, continued to move higher, indicating the short term up-cycle is still intact. Signals from the indicators point towards consolidation with upward bias for the FBM KLCI.

For the short term, the FBM KLCI is trapped in a sideways consolidation range with an upward bias, while the underlying long term trend remained up.

As the 10th Malaysia Plan has been unveiled, it may give some fresh direction to the local bourse, however, as it is a long term plan, the impact may not be felt immediately.

Overnight, the Dow closed 273.28 points or 2.76% higher at 10,172.53. Today, the FBM KLCI is likely to trade within a range of 1284 to 1300

This week's expected range: 1245 – 1320
Today’s expected range: 1284 – 1300

Resistance: 1293, 1296, 1300
Support: 1284, 1287, 1289

FBM KLCI - higher in quiet trading

Stocks on Bursa Malaysia closed firmer yesterday with buying support in selected heavyweights, while trading was cautious, as the market awaits the unveiling of the 10th Malaysia Plan (10MP) today. The FBM KLCI closed 1.9 points or 0.15% higher at 1,290.08 after opening 3.63 points higher at 1,291.81. Gainers led losers by 344 to 266 while 260 counters closed unchanged. Volume rose to 629 million shares worth RM795 million, from 521 million shares worth RM767 million on Tuesday.

The FBM KLCI opened 3.63 points higher on the back of Dow’s 123 points gain overnight, however, it couldn’t move up further, but stayed in a narrow trading range in the positive territory throughout the day. Chart wise, it formed a black spinning-top candlestick which indicates indecision of the market to move forward, which is true, as reflected in the lethargic trading activities on relatively low volume. As was mentioned in yesterday’s analysis, the market is in a consolidation mode with upward bias.

MACD continued to move higher, indicating the gradual pick up in the upward momentum. Nonetheless, it is below the zero-line, indicating the up move is just part of a technical rebound. RSI(14) at 44.8 continued to move higher at a slow pace, but is still in the mildly bearish zone. Stochastic at 55 has passed the mid-range and continued to move higher, indicating the short term up cycle is still intact.

The FBM KLCI is now trapped in a consolidation range with immediate overhead resistance at 1295 to 1300 and support at 1270 to 1280. If it can clear the immediate strong resistance posted by the 120-day moving average (MA) at 1298, then there is a good chance that the benchmark index will move above the psychological resistance of 1300.

For the short term, the FBM KLCI is trapped in a sideways consolidation range with an upward bias, while the underlying long term trend remained up.

The unveiling of the 10th Malaysia Plan (10MP) today may give the market a short lift; however, as this is a long term plan, the effect of its benefits may be felt only over a longer period of time.

Overnight, the Dow closed 40.73 points or 0.41% lower at 9,899.25. Today, the FBM KLCI is likely to trade within a range of 1281 to 1300

This week's expected range: 1245 – 1320
Today’s expected range: 1281 – 1300

Resistance: 1293, 1296, 1300
Support: 1281, 1285, 1288

Stock to Watch: HAIO

FBM KLCI - closed marginally higher with upward bias

Stocks on Bursa Malaysia ended firmer yesterday following gains in regional bourses and improved investor sentiments ahead of the unveiling of the 10th Malaysia Plan tomorrow. The FBM KLCI ended 1.91 points or 0.15% higher to close at 1288.18 on sustained buying of heavyweights blue-chips, it had opened 0.49 points easier at 1285.78. Gainers led losers by 349 to 271 while 221 counters closed unchanged. Volume improved slightly to 512 million shares worth RM767 million from 491million shares worth RM844 million on Monday.

Despite the 115 points fall of the Dow overnight, sentiments on Bursa Malaysia was not very much affected. The FBM KLCI opened marginally lower and moved upward in a narrow range for most part of the day, it touched the intra-day high of 1290.80 before last minute profit-taking sent it to close off-high. Chart-wise, it formed a small body white candlestick which indicates consolidation with an upward bias. The key index is now trapped in a consolidation range with overhead resistance at 1290 to 1300 and support at 1270 to 1280. If it can clear the immediate strong resistance posted by the 120-day moving average (MA) at 1298, then there is a good chance that the benchmark index will move above the psychological resistance of 1300.

MACD continued to move higher after making the golden-cross on Monday, indicating the continuous gradual pick up in upward momentum. RSI(14) at 43.8, has hooked up slightly reflecting the marginal gain of the index, but is still in the mildly bearish zone. Stochastic at 51.2 has tapered-off, indicating a pause in the upward strength, nonetheless, the short term up-cycle is still intact. Signals from the indicators point towards a potential continuation of the short term uptrend.

Short term, the FBM KLCI is trapped in a sideways consolidation range with an upward bias, while the longer term trend is still remained up.

The unveiling of the 10th Malaysia Plan tomorrow may give investors a lead in the local market and may help push the benchmark index higher. Overnight, the Dow closed 123.49 points or 1.26% higher at 9,939.98.

Today, the FBM KLCI is likely to trade within a range of 1279 to 1300

This week's expected range: 1245 – 1320
Today’s expected range: 1279 – 1300

Resistance: 1291, 1294, 1300
Support: 1279, 1282, 1285

FBM KLCI - down with hidden buying support

Stocks on Bursa Malaysia ended lower yesterday led by selling on heavyweights. The fall was in tandem with the weak performances of regional markets following Wall Street's slump last Friday on disappointing US jobs data and fears that Hungary could face a debt crisis like Greece's. The FBM KLCI fell 8.12 points or 0.63% to 1,286.27 after opening 9.88 points lower. Losers outpaced gainers by 463 to 151 while 206 counters closed unchanged. Volume fell to 491 million shares worth RM844 million from 674million shares worth RM988 million last Friday.

The FBM KLCI opened with a down gap of 9.88 points lower and lost as much as 15.50 points when it hit the intra-day low of 1278.89, but recovered much of its lost ground as the day progressed, the loss was narrowed to 3.71 points when it hit the intra-day high of 1290.68 before last minute profit-taking sent it to close 8.12 points lower at 1286.27. The price action of the FBM KLCI indicates that there were actually buying on weakness of blue-chip shares when the fearful investors sell out, hence, the key index formed a Doji type candlestick which closed above its mid-point for the day, indicating the buyers were in control.

MACD continued to move higher and has indeed made a golden-cross, which is a buy signal. However, this is a weak buy signal as the cross happened below the zero-line, and reflected just the technical rebound that took place over the last few days, which could be short-lived. RSI(14) at 42.85 has again hooked down and reflected the correction, is in the bearish zone. Stochastic at 51 continued to move higher indicating the short term rebound is still in force. Mixed signals from the indicators point towards a corrective mode of the key index.

The FBM KLCI is now bound on top by the resistance post by the 120-day moving average (MA) at 1298, and is supported below by the 5 and 200-day MA which form the support zone at 1270 to 1276. The short term trend of the key index is range-bound with a downward bias, the long term trend is, however, still up.

In view of a lack of fresh leads locally, the FBM KLCI is expected to continue tracking the performance of the regional key indexes.

Overnight, the Dow closed 115.48 points or 1.16% lower at 9816.49. Today, the FBM KLCI is likely to trade within a range of 1268 to 1297

This week's expected range: 1245 – 1320
Today’s expected range: 1268 – 1297

Resistance: 1290, 1294, 1297
Support: 1268, 1273, 1280

FBM KLCI - consolidation expected ahead

Stocks on Bursa Malaysia staged a technical rebound last week after two consecutive weeks or nine straight days of fall, as investors bargain-hunt stocks that have fallen heftily over the last two weeks. The FBM KLCI rose 25.23 points to 1,294.39 from 1,269.16 week-on-week. Weekly turnover fell slightly to 3.328 billion shares valued at RM5.259 billion compared with the 3.397 billion shares valued at RM6.423 billion the previous week.

The FBM KLCI opened last week with a strong follow-through rebound which gave 15.85 points gains on last Monday. This was followed by two days of mild correction on Tuesday and Wednesday, and Thursday saw another 18 points up swing of the key index which hit the intra-week high of 1297.75, before profit-taking activities sent the key index off its intra-week high to close the week at 1294.39.

On the weekly chart, the FBM KLCI formed a bullish white candlestick which closed near its high. On the daily chart, however, a Doji candlestick with a long lower shadow was formed last Friday, which indicates a pause in the up move of the key index.

The rebound of the FBM KLCI last week has led the key index into the resistance zone of 1290 to 1300. On the weekly chart, it is closing above the 30-week moving average (MA), but is faced with the psychological resistance at 1300 and the resistance post by the 5-week MA at 1304. On the daily chart, the 120-day MA has post as a hurdle to the up move as the key index retraces after hitting it. The key index is now faced with multi-level of resistances from 1297 to 1320 as it tries to recover its recent losses. The key support for the key index lies at 1270, which is where the 200-day MA is now, and the psychological 1250 level to the 1244 level, the recent low.

Weekly MACD continued to slide lower, indicating the continuation of the downward momentum on the weekly time frame. However, daily MACD continued to move higher, albeit below the zero-line, reflecting the technical rebound of the key index last week. Weekly RSI(14) at 52 has hooked up, and has returned to the neutral zone, whereas, daily RSI(14) at 46 has turned flat, is still in the mildly bearish zone. Weekly Stochastic at 35 continued to move lower, indicating the down cycle is still in action; whereas the daily Stochastic continued to move higher, reflecting the up move due to the technical rebound. As the indicators signals from the longer term weekly chart is still negative, the current rebound may be short-lived, and may faced a pull-back before it move to challenge the higher resistance levels.

The short term trend of the FBM KLCI has now reversed up, the medium term trend is sideways with a downward bias, whereas the long term trend is still up.

On a lack of fresh leads, with the two weeks mid-year school holiday starting today and the FIFA world cup starting this Friday, the market is expected to go into a consolidation mode.

The Dow closed 323.31 points or 3.15% lower on last Friday at 9,931.97, this may affect the sentiments today towards the negative side, and will lead to a correction to the gain last week. This week, the FBM KLCI may trade within a range of 1245 to 1320, and for today it is likely to trade within a range of 1281 to 1302.

This week's expected range: 1245 – 1320
Today’s expected range: 1281 – 1302

Resistance: 1297, 1299, 1302
Support: 1281, 1285, 1290

FBM KLCI - short term trend turned up

Stocks on Bursa Malaysia ended higher across the board yesterday in tandem with gains in most major regional bourses. The FBM KLCI rose 18.42 points or 1.44% to close at 1,294.44, after opening 9.52 points higher at 1,285.54. It touched the intra-day high of 1297.75 before profit-taking activities sent it lower to close off high. Gainers overwhelmed losers by 542 to 154 while 244 counters were unchanged. Turnover was higher at 655 million shares valued at RM1.243 billion from 585 million shares valued at RM802 million on Wednesday.

The FBM KLCI formed a bullish white candlestick with a breakaway gap indicating bullish buying support for index-link counters. It breaks into the immediate resistance zone of 1285-1300 and encountered some resistance when it hit the 120-day moving average (MA) at 1297.55, hence, it retrace from the intra-day high of 1297.75 to close below this immediate resistance at 1297. If the key index is able to cross this resistance and the 1300 psychological resistance level, then it might run towards the 1316 level.

MACD continued to move higher but is still below its trigger-line and in the negative zone, indicating the current rise of the benchmark index is in technical rebound state after a steep falls. Nonetheless, the upward momentum is gaining strength as indicated by the histograms, and a golden-cross is about to happen. RSI(14) at 46 has turned up and move into the neutral zone from the bearish zone, indicating a gain in the positive strength. Stochastic at 39.8 continued to move higher, indicating the short term up cycle or rebound is still in place. Signals from the indicators are pointing towards a continuation in the current rebound.

The short term trend of the FBM KLCI has reversed up yesterday when the key index crossed above the 10-day MA. The medium term trend is in the sideways as indicated by the 30 and 60-day MA, while the long term trend is still up.

In view of a lack of fresh leads locally, the FBM KLCI will continue to track the performances of major regional markets. Overnight, the Dow closed 5.74 points or 0.06% higher at 10,255.28, and the European markets also closed in the positive zone.

Today, the FBM KLCI is likely to trade within a range of 1280 to 1310.

This week's expected range: 1208 – 1305
Today’s expected range: 1280 – 1310

Resistance: 1300, 1305, 1310
Support: 1280, 1285, 1290

FBM KLCI - down on low volume

Stocks on Bursa Malaysia ended mixed yesterday in a range-bound, directionless and low volume trading day. The FBM KLCI lost 6.95 points or 0.52% to close at 1,276.02, after opening 2.63 points lower at 1,280.34. Losers led gainers marginally by 294 to 287 while 269 counters were unchanged. Volume shrink to a two months new low at 585 million shares worth RM802 million.

The FBM KLCI traded in a narrow three points range throughout the day before last minute profit taking activities sent it to close at the lowest point for day. Chart wise, it formed a bearish black Harami candlestick which signifies uncertainties with a bearish outlook. The formation of this candlestick also confirmed the reversal signal sent out by the previous hanging-man candlestick.

The benchmark FBM KLCI is now trapped in a consolidation range with immediate overhead resistance at the three days high of 1285 and immediate support at 1270.

MACD continues to bounce higher with the histograms turning shorter, indicating the downward momentum is slowing down. As it is still below the zero-line, it indicates the key index is still in a corrective mode. RSI(14) at 36.9 continues to slide down, is still in the bearish zone. Stochastic at 39.9 is tapering off, which indicates a slow down in the upward swing. Mixed signals from the indicators point towards a corrective and consolidation mode for the FBM KLCI.

The short term trend of the FBM KLCI is currently down. In order to reverse the short term downtrend, the key index has to close above the 1300 level. The underlying long term trend is, however, still up. Immediate overhead resistance zone for the key index lies at 1285 to 1300, whereas the immediate support zone lies at 1270 to 1250.

Overnight, DJIA gains 225.52 points or 2.52% to close at 10,249.54, and the fall in most major European key indexes has slow down. In view of a lack of fresh leads locally, the FBM KLCI is likely to track the trend of regional bourses.

Today, the FBM KLCI is likely to trade within a range of 1268 to 1290.

This week's expected range: 1208 – 1305
Today’s expected range: 1268 – 1290

Resistance: 1280, 1285, 1290
Support: 1268, 1272, 1274

FBM KLCI - profit taking after technical rebound

Stocks on Bursa Malaysia ended broadly lower yesterday in tandem with the weak performances of the regional markets. The FBM KLCI ended 2.04 points or 0.16% lower to close at 1282.97 after opening 0.76 point lower, and lost as much as 10.45 points before last minute buying lift it off low to close just marginally lower. Losers outpaced gainers by 487 to 200 while 214 counters were unchanged. Volume was lower at 653 million shares worth RM758 million.

The price action of the FBM KLCI yesterday formed a hanging-man candlestick, which is a top reversal signal especially after a strong rise, it indicates heavy selling initially but late buying support lifted the price to close off-low. The key index is now blocked on top by the short term 10-day moving average (MA) and the overhead resistance zone at 1290 to 1300. The immediate lower support zone lies at 1268 to 1250.

MACD continued to move higher but is still below the zero-line, which indicates the current up move is just a technical rebound. RSI(14) at 39.23 is still in the bearish zone, has hooked down slightly reflecting the pull-back of the index. Stochastic continued to move higher reflecting the rebound of the index but is still in the weak zone.

Despite the rebound last three days, the FBM KLCI is still in a short term down trend, as it is still staying below the short term 10-day MA. The underlying long term trend as indicated by the long term 240 and 360-day MA is still up.

The FBM KLCI is currently in a critical position, as a break below the 1250 level could trigger-off a confidence crisis which can lead into another round of sell down, which will see the key index slides toward the 1200 level.

Overnight, the Dow closed 112.61 points or 1.11% lower at 10024.02. Today, the FBM KLCI is likely to trade within a range of 1267 to 1290.

This week's expected range: 1208 – 1305
Today’s expected range: 1267 – 1290

Resistance: 1285, 1288, 1290
Support: 1267, 1271, 1277

FBM KLCI - follow-through rebound

Stocks on Bursa Malaysia ended firmer yesterday with heavyweight blue-chip stocks making strong gains after recent sell-down. The FBM KLCI opened higher and stayed in the positive territory throughout the day to end 15.85 points or 1.25% higher at 1285.01. Nevertheless, the benchmark index was down 4.56% for the month of May. Gainers led losers by 364 to 306 with 242 counters traded unchanged. Volume declined to 760 million shares valued at RM1.467 billion from 864 million shares valued at RM1.240 billion last Thursday.

The FBM KLCI staged a follow-through technical rebound after opening 7.27 points higher and ended near the highest point for the day. Chart wise, it formed a bullish white candlestick which indicates the bull was in control. The key index may continue to move higher today, however, it is faced with the immediate overhead resistance zone at 1290 to 1300, which was the gap area formed six days ago, and the 120-day moving average at 1297 will also post as a strong resistance to the rebound.

MACD has turned up, indicating a reverse in the downward momentum caused by the technical rebound. RSI(14) at 39.9 continued to move higher after touching the deeply oversold state three trading days ago. Stochastic at 22 has crossed above the oversold level and may continue to move higher. Signals from the indicators are pointing towards a technical rebound for the FBM KLCI.

The short term trend of the FBM KLCI is still down, as the up-move over the last two days was just a technical rebound which could be short-lived. If only the key index can clear the resistance zone at 1290 to 1300 and stay above the 1300 level, then the short term down trend is considered reverse up. The underlying long term trend of the key index is, however, still up.

Looking forward, in view of a lack of fresh leads locally, with the Europe debt crisis still unsettled and the rising tension in the Korean Peninsular, the FBM KLCI may consolidate at the current level of 1250 to 1300 before any strong up-move can take place. The downside support still lies at 1250 to 1243.

The US market was closed for a holiday yesterday. Today, the FBM KLCI is likely to trade within a range of 1267 to 1300.

This week's expected range: 1208 – 1305
Today’s expected range: 1267 – 1300

Resistance: 1289, 1295, 1300
Support: 1267, 1276, 1280