Stocks on Bursa Malaysia ended mixed yesterday as investors took profit after earlier gains, while the benchmark index charted a new high for this year. The FBM KLCI rose 6.14 points or 0.46% to close at 1,351.82, after opening 4.86 points higher at 1350.54. Losers led gainers by 355 to 336 while 274 counters were unchanged. Volume declined to 850 million shares worth RM1.122 billion from 993 million shares valued at RM1.430 billion last Friday.
The FBM KLCI opened with an up gap of 4.86 points at 1350.54, and surged to the intra-day high of 1352.94 before profit-taking activities sent it down to the intra-day low of 1348.58, however, continued buying interest on selected blue-chips managed to lift the benchmark index to close above the psychological resistance of 1350 after three earlier attempts this year. Chart-wise, it formed a white spinning-top candlestick which indicates the bull and the bear was in a close fight, nevertheless, the bull has an upper hand. The key index may continue its momentum to move higher to test the next target at 1360.
MACD continued to climb higher, indicating the rise in upward momentum. RSI(14) at 66.9 continued to move higher and is bullish. Stochastic at 93.3 is short term overbought, nonetheless, it indicates the key index is very strong. Signals from the indicators are pointing toward a bullish state of the FBM KLCI, and it is expected to climb higher with intermittent pull-back on profit-taking.
The benchmark FBM KLCI is now staying above all the short, medium and long term moving averages, indicating a bullish state of the key index. The short and long term trends are up, while the medium term trend is sideways. Immediate overhead resistance zone now lies at 1355 to 1383, while the immediate support zone is at 1330 to 1340.
With positive news that most European banks had passed the stress tests coupled with better-than-expected US corporate earnings, it helped ease investor worries over the strength of the global economic recovery. Locally, the continued announcements of corporate results which are expected to be encouraging will help boost the market to move higher.
Overnight, the Dow closed +100.81 points or +0.97% higher at 10,525.43. Today, the FBM KLCI is likely to trade within a range of 1345 to 1360.
This week's expected range: 1316 – 1375
Today’s expected range: 1345 – 1360
Resistance: 1353, 1355, 1360
Support: 1345, 1347, 1349
Stock to watch: Airasia, Tebrau, L&G
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