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
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