Stocks on Bursa Malaysia ended broadly lower yesterday with heavy selling of heavyweight finance and plantation counters. The FBM KLCI ended 4.97 points or 0.37% easier at 1,336.05, after trading between a range of 1,332.92 and 1,339.98 points. Losers outnumbered gainers by 388 to 318 while 251 counters were unchanged. Turnover was lower at 872 million shares worth RM1.145 billion, compared with 874 million shares worth RM1.268 billion, registered on Wednesday.
The FBM KLCI opened with a 1.94 point down gap and traded lower to hit the intra-day low of 1332.92. Bargain-hunting activities in late afternoon lifted the key index to close off low at 1336.05. The price action of the key index formed a bearish black candlestick which is a confirmation to the reversal signal from the shooting-star candlestick formed the day before. The key index rebounded off the 10-day moving average (MA) after hitting it, and managed to close above the immediate support at 1335.
MACD has curved downward with its histogram turning shorter, indicating a slow down in the upward momentum. RSI(14) at 59.4 has hooked downward and moved into the mildly bullish zone. Stochastic at 88.5 has turned flat and remained in the overbought zone. Signals from the indicators are mixed, hence, the key index may go sideways.
The short term trend of the FBM KLCI remained up as indicated by the 10 and 30-day MA which is pointing upward. The medium term trend is likely to move sideways, as indicated by the 60-day MA which is lying flat, while the long term trend remained up. The FBM KLCI is expected to be in a range-bound mode with overhead resistance zone at 1340 to 1350, while immediate support zone remained at 1320 to 1330.
Overnight, the Dow closed +201.77points or +1.99% higher at 10,322.30. Today, the FBM KLCI is likely to trade within a range of 1326 to 1347.
This week's expected range: 1300 – 1360
Today’s expected range: 1326 – 1347
Resistance: 1339, 1343, 1347
Support: 1326, 1329, 1332
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