Millionaire Trend Trader: FBM KLCI - closed marginally higher with upward bias

Wednesday, June 9, 2010

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

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Wednesday, June 9, 2010

FBM KLCI - closed marginally higher with upward bias

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