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
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