Stocks on Bursa Malaysia ended firmer across the board, lifted by buying interest as investors anticipate a string of good corporate results starting yesterday. The FBM KLCI rose for seventh consecutive days, it gained 8.21 points or 0.62% to close at 1,341.08, after opening 3.78 points higher at 1,336.65. Gainers outpaced losers by 506 to 194 while 269 counters were unchanged. Total volume surged to 801 million shares worth RM1.538 billion from 574 million shares worth RM1.085 billion previously.
The FBM KLCI opened with an up gap of 3.78 points at 1336.65, above the resistance at 1335. It surged to the intra-day high of 1341.96 within first hour of trading, and profit-taking activities set in to send it lower to 1338 before last hour buying bring it back to close near the high at 1341.08. It formed a bullish white candlestick which indicates continuation of the uptrend. The benchmark index is expected to face strong resistance as it comes close to the 1347 to 1350 resistance zone, some pull-back is expected before it continues to move higher.
MACD continued to climb higher, indicating a continuation of the upward momentum. RSI(14) at 66 continued to move higher and has entered the bullish zone. Stochastic at 93 indicates the market strength is very strong but has entered the short term overbought zone. Signals from the indicators point to a continuation of current short term uptrend.
The main hurdle for the FBM KLCI now is the 1350 psychological resistance level, which it failed to cross in the last three attempts since April 2010. If the index is able to cross this resistance level convincingly, it might be able to reach the higher target level of 1380 before year end.
Overnight, the Dow closed +3.70 points or +0.04% higher at 10,366.72. Today, the FBM KLCI is likely to trade within a range of 1333 to 1350
This week's expected range: 1283 – 1360
Today’s expected range: 1333 – 1350
Resistance: 1343, 1346, 1350
Support: 1333, 1337, 1339
Stock to watch: XDL
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