Stocks on Bursa Malaysia extended their losses yesterday, tracking the weak performances of regional markets as concerns over a slowing economy continued to weigh on investor sentiment. The FBM KLCI fell 5.26 points or 0.40% to 1,308.76 points after opening 1.05 points lower at 1,312.97 points. Losers outnumbered gainers by 413 to 206 while 238 counters were unchanged. Volume eased to 557 million shares valued at RM1.022 billion from Wednesday's 563 million shares worth RM987 million.
The FBM KLCI opened 1.05 points lower but move into the positive territory briefly before selling pressure sent it lower as the day progressed. It traded within the range of previous day’s candle and formed a bearish Harami candlestick, signifying uncertainty of the market at this level, hence, it might move lower.
The key index found its immediate support by the 100-day MA at 1306 when it rebounded off it twice over the last two days. The lower support zone at 1298 to 1306 has now become a critical support area for the key index, if this support zone is breached, then, the index might plunge towards the 1270 level.
MACD continued to slide lower indicating the pick up in downward momentum. RSI(14) at 48.5 has turned bearish. Stochastic at 50 continued to slide lower, indicating the down cycle is picking up steam. Signals from the indicators point towards possible more downside to come for the FBM KLCI.
Sentiment remained weak because of numerous uncertainties on Wall Street and even in China. In view of a lack of fresh leads, the FBM KLCI is expected to continue drifting lower. Overnight, the Dow closed -41.49 points or -0.42% lower at 9,732.53. Today the FBM KLCI is likely to trade within a range of 1295 to 1320.
This week's expected range: 1293 – 1352
Today’s expected range: 1295 – 1320
Resistance: 1311, 1315, 1320
Support: 1295, 1301, 1305
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