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
No comments:
Post a Comment