FBM KLCI - mild rebound

Stocks on Bursa Malaysia ended mixed yesterday with a mild rebound on the benchmark index, supported by buying on selected finance- and plantation-related stocks. Market sentiment was underpinned by the rally in the regional bourses. The FBM KLCI rose by 2.14 points or 0.15 per cent to end at 1461.78, after opening 4.68 points higher at 1464.32. Gainers outnumbered losers by 430 to 283 while 306 counters were unchanged. Volume fell to 905 million shares worth RM1.449 billion from 976 million shares worth RM1.351 billion on Tuesday.

The FBM KLCI opened 4.68 points higher at 1464.32 and surged to the intra-day high of 1466.29 in the first fifteen minutes before profit-taking activities sent it down to the intra-day low of 1459.12. The key index was in consolidation mode for most part of the day before last minute buying of selected heavyweights which lifted it off low to close 2.14 points higher at 1461.78. Chart-wise, the benchmark index formed a small body black candlestick which indicates low volatility and consolidation. The key index is currently supported below by the 5-day moving average (MA) at 1459 while it is bound on top by the 10-day MA at 1466. A breakout in either way will see the key index moving in that direction.

MACD continued to slide lower as shown by the increasing length of the histogram, indicating a continued loss in upward momentum and a correction mode of the key index. RSI (14) at 63.5 has hooked up slightly reflecting a sideways situation; it is however, still in the mildly bullish zone. Stochastic at 65.5 has turned upward and just crossed above its slow stochastic reflecting a technical rebound of the key index. Signals from the indicators are reflecting the consolidation mode of the FBM KLCI.

For the immediate near term, the FBM KLCI has fall into a sideways consolidation mode, nonetheless, the underlying medium to long term trend still remained up. Immediate support zone for the key index lies at 1440 to 1450 while the overhead resistance zone remained at 1470 to 1480.

Overnight, the Dow fell -22.86 points or -0.21% lower to close at 10,835.28. Today, the FBM KLCI is likely to trade within a range of 1451 to 1473.

This week's expected range: 1403 – 1514
Today’s expected range: 1451 – 1473

Resistance: 1466, 1469, 1473
Support: 1451, 1455, 1458

FBM KLCI - correction

Stocks on Bursa Malaysia ended lower yesterday as the heavyweights correct after the strong rebound on Monday, in line with the weaker performance of the regional markets. The benchmark FBM KLCI fell 5.07 points or 0.35% to close at 1459.64 after opening 1.30 points lower at 1463.41. Losers outnumbered gainers by 493 to 244 while 289 counters were unchanged. Volume fell to 976 million shares worth RM1.351 billion from 1.158 billion worth RM1.623 billion on Monday.

The FBM KLCI opened 1.30 points lower at 1463.41 following the weak performance of the Dow overnight. It rebounded to touched the intra-day high of 1465.47, but succumbed to the heavy profit-taking activities which sent the key index to the intra-day low of 1457.80 before rebounding to close off low at 1459.64. Chart-wise, the FBM KLCI formed a bearish Harami candlestick, which is a reversal signal. Hence, the key index is likely to continue its consolidation with a downward bias.

MACD continued to slide lower, indicating a pick up in the downward momentum. RSI(14) at 62.7 has hooked down, nonetheless, is still in the mildly bullish zone. Stochastic at 58.6 has turned up slightly, but is still below its slow Stochastic, reflecting the rebound, however, the down cycle has not been reversed yet. Signals from the indicators are indicating a state of consolidation of the FBM KLCI with a downward bias.

The FBM KLCI is now below the immediate term 5 and 10-day MA, hence, is expected to continue moving lower, unless it can close above 1467, only then the downtrend can be reversed. For the near term, the FBM KLCI is expected to be sideways or range-bound with a downward bias, with immediate support at 1440 to 1450 while the overhead resistance zone remained at 1470 to 1480. The medium to longer term uptrend remained intact. The FBM KLCI might continue to track the performance of regional key indexes on the lack of fresh leads back home.

Overnight, the Dow rose +46.10 points or +0.43% higher to close at 10,858.14. Today, the FBM KLCI is likely to trade within a range of 1448 to 1473.

This week's expected range: 1403 – 1514
Today’s expected range: 1448 – 1473

Resistance: 1464, 1469, 1473
Support: 1448, 1453, 1456

FBM KLCI - technical rebound

Stocks on Bursa Malaysia rebounded to end firmer yesterday in tandem with the rise in regional markets, as strong gains on Wall Street last Friday helped spur buying on the local bourse. The benchmark FBM KLCI closed 13.52 points or 0.93% higher at 1464.71 led by gains in CIMB, MAYBANK, and IOICORP. Gainers led losers by 469 to 292 while 276 counters were unchanged. Turnover stood at 1.158 billion shares, worth RM1.623 billion, up from last Friday's 1.727 billion shares worth RM1.531 billion.

Taking cue from the hefty rise of the DJIA last Friday, the FBM KLCI opened with an up gap of 7.54 points at 1458.73. Mild profit-taking sent the index to its intra-day low of 1456.30 but strong buying support pushed the key index to its intra-day high of 1467.18 before easing to close at 1464.71. Chart-wise, the FBM KLCI formed a bullish white candlestick which confirmed the reversal signal of the Doji star pattern that formed last Friday.

The FBM KLCI actually retreated when it hit the resistance zone at 1463 to 1465 posted by the 5 and 10-day moving averages (MA) as was mentioned in yesterday’s analysis, and the key index is closing right below these two short term MAs. If the key index is able to close above 1467 today, then there is a high likelihood that it will move higher to re-test the resistance zone at 1470 to 1480.

MACD continued to slide lower after making the “dead-cross” last Thursday, indicating the correction is not over yet, and the rebound yesterday could be short-lived. RSI(14) at 66 has hooked up in tandem with the rebound, is still in the bullish zone. Stochastic at 57.6 continued to slide lower indicating the down cycle is not over yet. Signals from the indicators are indicating the current correction is not over yet, and the key index is likely to remain in a range-bound situation.

The 5-day MA has just crossed below the 10-day MA, indicating the short term trend is beginning to turn southward, unless the key index is able to close above 1467, only then the downtrend might reversed up. The medium to longer term underlying uptrend remained intact for the moment. The FBM KLCI is expected to remain in a range-bound situation with the overhead resistance zone at 1470 to 1480 while its immediate support zone lies at 1440 to 1450. The overall market is expected to remain active with rotational play on lower liners while heavyweight counters consolidate.

Overnight, the Dow fell -48.22 points or -0.44% lower to close at 10,812.04. Today, the FBM KLCI is likely to trade within a range of 1447 to 1478.

This week's expected range: 1403 – 1514
Today’s expected range: 1447 – 1478

Resistance: 1469, 1474, 1478
Support: 1447, 1451, 1458

FBM KLCI - likely to be range-bound consolidation

Stocks on Bursa Malaysia closed mixed last Friday on continued profit-taking and losses among heavyweights. The benchmark FBM KLCI reached a new two-and-a-half year high on Tuesday, buoyed by strong performance in regional markets and following the announcement of the government's ETP. However, profit-taking emerged for the following three consecutive days, with heavyweight stocks recording heavy losses. The benchmark FBM KLCI lost 15.78 points or 1.08% to 1,451.19, week-on-week, from 1,466.97 the previous week. Weekly turnover rose to 5.958 billion shares worth RM7.865 billion from 3.575 billion shares worth RM7.460 billion the previous week.

The FBM KLCI opened 3.76 points higher at 1470.73 on last Monday and went into a correction mode for most part of the day before rebounding to close off low at 1469.69. On Tuesday, the key index continued its rebound from Monday to close 6.3 points higher at 1475.99, charting a new two-and-a-half-year high on the back of the announcement of the government’s Economic Transformation Programme. The FBM KLCI paused to consolidate within a tight trading range on Wednesday to close 1.24 points lower at 1474.75 after hitting an intra-day high of 1479.44. The benchmark index suffered heavy loss of 16.67 points to 1458.08 on Thursday as the market sentiments weakened, marking the first deep correction in 2 two months. On Friday, the key index continued its down move to hit the intra-week low of 1445.33 before rebounding to close 6.89 points lower at 1451.19.

On the weekly chart, the price action of the FBM KLCI formed a dark-cloud-cover candlestick pattern which indicates profit-taking and correction. It, however, is still staying above the 5-week moving average (MA) which is now at 1440, indicating the underlying short term trend remained up. If the key index closes below the 1440 level, then it will move lower to test the support at 1428.

On the daily chart, the FBM KLCI formed a Doji candlestick with long lower shadow in a possible star position, and the fact that the key index is able to rebound to close above the 1450 psychological level, there’s a high chance that it may continue to move upward. However, it may meet strong resistance posted by the 5 and 10-day MA at 1463 to 1465 area.

Weekly MACD continued to climb higher but at a slower pace, as shown by the shorter histogram, indicating a slow down in the medium term upward momentum. Daily MACD, however, continued to fall lower after making the “dead-cross” on last Thursday, indicating a pick up in the short term downward momentum.

Weekly RSI(14) at 73.7 has fell from the high of 79.6 registered on the previous week, reflecting the current correction. It is, nonetheless, still bullish in the medium term perspective. Daily RSI(14) at 60.8 continued to slide lower from the recent high reading of 86 registered on September 14, reflecting the rapid correction and is now at the edge of the mildly bullish zone.

Weekly Stochastic at 91.5 continued to slide lower and is below its weekly slow Stochastic, reflecting the continuous loss in weekly momentum. Daily Stochastic at 65 continued to slide lower, indicating the continuation of the short term down cycle.

Signals from the indicators are indicating that the medium term upward momentum of the FBM KLCI is slowing down; whereas for the short term, the key index is undergoing a correction which has just begun and might continue in the coming week.

The FBM KLCI is now staying below the short term 5 and 10-day MA, which indicates short term downtrend. The medium to longer term uptrend is, however, still very much intact. An important moving average to watch is the 30-day MA which is currently at 1422. The key index has been able to stay above this MA in the last three months when it corrects, if the key index could not hold above the 30-day MA in the current correction, it might move further downward to the 1400 level.

For this week, the FBM KLCI is likely to be range-bound or consolidate as investors might adopt a wait-and-see attitude amid prevailing concerns about weaknesses in the US and European economies. Immediate support level is at 1428 to 1441 while the overhead resistance zone is at 1463 to 1480.

The Dow rose +197.84 points or +1.86% higher to close at 10,860.26 on last Friday. This week, the FBM KLCI may trade within a range of 1403 to 1514, and for today it is likely to trade within a range of 1437 to 1463.

This week's expected range: 1403 – 1514
Today’s expected range: 1437 – 1463

Resistance: 1455, 1459, 1463
Support: 1437, 1441, 1446

FBM KLCI - correction finally sets in

Stocks on Bursa Malaysia ended broadly lower yesterday, dragged by losses in key heavyweights. A correction sets in after the benchmark index touched a two-and-a-half-year high on Tuesday with investors tracking losses on Wall Street amid pessimistic assessment by the US Federal Reserve's Federal Open Market Committee on Tuesday that the US economic recovery had slowed. The benchmark FBM KLCI lost 16.67 points or 1.13% to 1458.08. Losers beat gainers by 523 to 221 while 254 counters were unchanged. Turnover was lower at 999 million shares worth RM1.416 billion from 1.332 billion shares worth RM2.021 billion on Wednesday.
The FBM KLCI opened 0.95 point higher at 1475.7 and traded to the intra-day high of 1477.03 before selling pressure sent it to the intra-day low of 1456.64, the key index rebounded weakly to close at 1458.08 on late buying of selected blue-chip stocks. Chart-wise, the benchmark index formed a bearish black candlestick which confirms the top reversal signal of the dark-cloud-cover pattern formed on Wednesday. The key index is expected to correct further downward. As the index has penetrated the support level at 1460 by the 10-day moving average (MA), the immediate support level to watch is the psychological support at 1450 and the pivot high which turned support at 1441.

MACD has turned southward and has just made a “dead-cross” over its trigger line, indicating that a serious correction has started. RSI(14) plunged steeply from 81 to 65.7, indicating a deep correction. Stochastic at 82.6 continued to slide lower, indicating a down cycle had started. Signals from the indicators are indicating a correction of the FBM KLCI which is long overdue had started, and the key index may continue to move lower to test the lower support levels.

As mentioned in yesterday’s analysis that if the benchmark index breaks below 1470, it might slide lower to the 1460 level, it did. For the immediate short term, the FBM KLCI is expected to correct further downward, nonetheless, the underlying medium and long term trend is still up and may give buffer to the short term correction. Immediate key support for the index lies at 1450, 1441, 1428. Overhead resistance zone is at 1465 to 1480.

Overnight, the Dow fell -76.89 points or -0.72% lower to close at 10,662.42. Today, the FBM KLCI is likely to trade within a range of 1430 to 1480.

This week's expected range: 1403 – 1520
Today’s expected range: 1430 – 1480

Resistance: 1465, 1471, 1480
Support: 1430, 1443, 1450

FBM KLCI - lower on profit taking

Stocks on Bursa Malaysia ended mixed yesterday as the market succumbed to selling pressure after recent gains. The government's Economic Transformation Programme (ETP) unveiled on Tuesday did not have an immediate impact on the market as investors awaited specific details on its long-term implementation. The FBM KLCI fell 1.24 points or 0.08% to close at 1474.75 after opening 1.85 points higher. Gainers led losers by 398 to 363 while 280 counters were unchanged. Turnover increased to 1.332 billion shares worth RM2.021 billion from 1.049 billion shares worth RM1.513 billion on Tuesday.

The FBM KLCI opened with 1.85 points up gap at 1477.84 and surged to the intra-day high of 1479.44 within the first fifteen minutes. Profit-taking activities sent the key index lower. The index was moving in and out of the positive territory within a 4.71 points range, and eventually settled near the low of the day at 1474.75. Chart-wise, the key index formed a bearish black spinning-top candlestick and dark-cloud-cover pattern, which is a top reversal pattern. In fact, the key index has been congesting between the recent high of 1479.59 and the low of 1465.03 over the last five days, a sign that the key index has loss the upward momentum and may turn southward anytime.

MACD has just started to turn downward, but is still above the trigger line, while the histogram is turning shorter, indicating a loss in upward momentum. RSI(14) at 81.2 has hooked downward, nonetheless, is still in the overbought zone. Stochastic at 90.7 has hooked up, but is still below the slow stochastic line. Signals from the indicators are indicating that the benchmark index is gradually losing its upward momentum, and may continue to slide lower.

The underlying longer term uptrend remained intact. The near term 5-day moving average (MA) s at 1472 and has turned flat, while the 10-day MA is now at 1460. If the index breaks below 1470 level, it might slide lower to the immediate support at 1465 and 1460. Overhead resistance zone remained at 1480 to 1500.

Overnight, the Dow fell -21.72 points or -0.20% lower to close at 10,739.31. Today, the FBM KLCI is likely to trade within a range of 1466 to 1485.

This week's expected range: 1403 – 1520
Today’s expected range: 1466 – 1485

Resistance: 1478, 1481, 1485
Support: 1466, 1471, 1473

FBM KLCI - closed at new two-and-a-half-year high!

Stocks on Bursa Malaysia ended higher yesterday, buoyed by strong buying interest in selected blue-chips, pushed the benchmark FBM KLCI to close at a new two-and-a-half-year high at 1475.99, gaining 6.3 points or 0.43%. The unveiling of the government's Economic Transformation Programme (ETP) yesterday, aimed at boosting Malaysia's economy at 6% every year between 2011 and 2020, boosted market sentiment. Gainers led losers by 368 to 345 while 319 counters were unchanged. Turnover was higher at 1.049 billion shares, worth RM1.513 billion, from 850 million shares, worth RM1.381 billion on Monday.

The FBM KLCI opened 1.46 points higher at 1471.15 and surged to the intra-day high of 1479.59 within the first half-an-hour, the same resistance level registered on last Friday, and heavy profit-taking activities sent the key index down to the intra-day low of 1471.03. Buying interest on selected blue-chips which surfaced in late afternoon helped lift the key index to close 6.3 points higher at 1475.99. Chart-wise, the price action of the key index formed a bullish white candlestick which confirmed the reversal signal generated by the Hammer-like candlestick formed on Monday. The index is likely to continue moving higher; nonetheless, the level at 1479.59 is a major resistance to cross before it can chart new high.

MACD continued to move higher, but at a slower pace, as shown by the shorter histogram, which indicates a reduction in the upward momentum. RSI(14) at 81.4 is climbing marginally higher, indicating a very bullish undertone of the benchmark index, albeit in the overbought zone. Stochastic at 88.45, however, continued to slide lower, indicating a gradual loss in market strength. Signals from the indicators are indicating a bullish undertone of the FBM KLCI, with a gradual loss in upward momentum, and a correction is imminent.

The underlying trend of the FBM KLCI remained very bullish as indicated by the index staying above all the short, medium and long term moving averages that are all pointing northeast. Immediate support zone now lies at 1450 to 1465, while the overhead resistance zone remained at 1480 to 1500. As the market undertone is still very bullish, any correction should be viewed as an opportunity to accumulate quality stocks at lower price level. The market is likely to be in rotational play for the next three weeks until the budget 2011 announcement on October 15.

Overnight, the Dow rose +7.41 points or +0.07% higher to close at 10,761.03. Today, the FBM KLCI is likely to trade within a range of 1463 to 1488.

This week's expected range: 1403 – 1520
Today’s expected range: 1463 – 1488

Resistance: 1480, 1484, 1488
Support: 1463, 1467, 1471

Stock to Watch: KENCANA, SAPRES, TGUAN, XINQUAN

FBM KLCI - rebounded to close off-low

Stocks on Bursa Malaysia were mostly lower yesterday on profit-taking after the gains last week. The benchmark FBM KLCI rose by 2.72 points or 0.19% higher to close at 1469.69 on late buying interest in selected heavyweights. Decliners led advancers by 417 to 316 while 269 counters were unchanged. Turnover declined to 850 million shares worth RM1.381 billion from 967 million shares worth RM1.906 billion last Friday.

The FBM KLCI opened 3.76 points higher at 1470.73, it surged to the intra-day high of 1472.31 briefly and traded in a southward direction for most part of the day. It touched the intra-day low of 1465.03 but rebounded to close in the positive region on late buying of selected heavyweights. Chart-wise, the key index formed a Hammer-like candlestick which is a bottom reversal signal; it indicates the bulls are buying on correction. The key index hit the 5-day moving average at 1468 and rebounded of it, indicating the short-term support for the key index is still strong, and the immediate short term uptrend remained intact.

MACD continued to move higher, but at a slower pace as indicated by the shorter histogram, which signaled a slow down in the upward momentum. RSI(14) at 79.9 is very bullish and has hooked up, nonetheless, it is still in the overbought zone. Stochastic at 89.9 continued to move lower, reflecting the current correction mode of the index. Signals from the indicators are reflecting the current mild pullback of the key index, and the underlying tone is still very bullish.

The underlying uptrend of the benchmark FBM KLCI remained very strong as indicated by the index staying above all the short, medium and long term moving averages that are all pointing northeast. Immediate support zone lies at 1450 to 1461 provided by the short term 5 and 10-day MA, while the overhead resistance zone is at 1480 to 1500. As the market undertone is still very bullish, any correction should be viewed as an opportunity to accumulate quality stocks at lower price level. The market is likely to be in rotational play for the next three weeks until the budget 2011 announcement.

Overnight, the Dow rose +145.77 points or +1.37% higher to close at 10,753.62. Today, the FBM KLCI is likely to trade within a range of 1458 to 1480.

This week's expected range: 1403 – 1520
Today’s expected range: 1458 – 1480

Resistance: 1473, 1476, 1480
Support: 1458, 1461, 1465

Stock to watch: KEURO

FBM KLCI - correction amid bullish undertone

Stocks on Bursa Malaysia ended broadly higher last week despite Raya holiday mood and the Malaysia Day holiday on last Thursday with the benchmark index continuously charting new high for the year. The FBM KLCI rose another 29.19 points or 2.03%, week-on-week, to close at 1466.97 on last Friday after hitting an intra-week high of 1479.59, as overall market sentiments weakened on Friday due to profit-taking activities. Weekly turnover rose to 3.575 billion shares worth RM7.460 billion from 2.442 billion shares worth RM4.493 billion the previous week.

The benchmark FBM KLCI opened last Monday on a positive note with an up gap of 1.48 points at 1439.26 which became the intra-week low and traded higher to close at 1456.96, advancing 19.18 points. The key index continued its bullish momentum on Tuesday to make another strong gain of 17.48 points to close at 1474.44, a record close for the year which was last seen 32 months ago in January 2008. It took a breather on last Wednesday when it ended slightly lower on mild profit-taking to close 1.49 points lower at 1472.95. Bursa Malaysia was closed last Thursday for Malaysia Day celebration, and on Friday, the benchmark index opened on a positive note to touch the intra-week high of 1479.59 before buying momentum fizzled out as investors lock-in profits after recent sharp gains ahead of the weekend to close the week at 1466.97, losing 5.97 points from Wednesday’s close.

On the weekly chart, the FBM KLCI formed a bullish white candlestick which indicates a continuation of the weekly upward trend. On the daily chart, it however, formed a bearish black inverted-hammer candlestick on last Friday, which is a top reversal signal. Its formation confirmed the possible reversal signal indicated by the Doji candlestick formed last Wednesday. The key index may continue to correct or consolidate in the coming week; nevertheless, a brief or shallow correction is expected as the undertone of the market still remained bullish. Immediate support zone is expected at 1449 to 1461 provided by the very short term 5-day moving average (MA) at 1461 and the short term 10-day MA at 1449. Overhead resistance zone is at 1480 to 1500.

Weekly MACD continued to climb higher, indicating a strong medium term upward momentum for the FBM KLCI. Daily MACD, however, has tapered off, as shown by its shorter histogram, indicating a loss in the daily upward momentum. Weekly RSI(14) at 79.6 is in a very bullish state, nonetheless, is entering the overbought zone. Daily RSI(14) at 79.3 continued to move lower from the reading of 86.4 charted on Tuesday, reflecting the current correction. It, however, is still in the short term overbought zone, hence, is expected to further correct downward. Weekly Stochastic at 95.6 continued to move lower and has crossed below its weekly slow Stochastic, and daily Stochastic at 94 has also crossed below its slow Stochastic, indicating possible further downward correction. Signals from the indicators are telling an overbought situation for the FBM KLCI, a pullback is imminent.

The underlying uptrend of the FBM KLCI remained bullish as indicated by the short, medium and longer term moving averages that are all pointing northeast. Hence, any correction or pullback in the key index is expected to be shallow, and should be viewed as an opportunity to accumulate quality shares at lower price level, as the index is expected to move higher after the correction. Immediate support zone is at 1449 to 1461, while overhead resistance zone is at 1480 to 1500.

The overall market is expected to trade higher this week amid anticipation of positive news from the key announcement by the government on the details of the Economic Transformation Program (ETP) and the Entry Point Projects (EPPs). Besides that, there is also Budget 2011 coming up on Oct 15, 2010, which may come up with more goodies. So, for the next few weeks there are enough positive impetus to spur the market to move upwards.

The Dow rose +13.02 points or +0.12% higher to close at 10,607.85 on last Friday. This week, the FBM KLCI may trade within a range of 1403 to 1520, and for today it is likely to trade within a range of 1450 to 1492.

This week's expected range: 1403 – 1520
Today’s expected range: 1450 – 1492

Resistance: 1475, 1484, 1492
Support: 1450, 1458, 1462

FBM KLCI - mild correction

Stocks on Bursa Malaysia ended slightly lower Wednesday on mild profit-taking, mainly in financial counters after recent rally; losses were marginal as sentiment remained robust. The benchmark FBM KLCI index shed a marginal 1.49 points or 0.1% to 1472.95 after opening 1.73 points lower at 1472.71. Decliners outnumbered advancers by 416 to 299 while 301 counters were unchanged. Turnover dropped to 725 million shares worth RM1.436 billion from Tuesday’s 1.04 billion shares worth RM2.127 billion. Bursa Malaysia was closed for the Malaysia Day holiday yesterday.

The FBM KLCI opened 1.46 points lower at 1427.71 and traded in the negative territory throughout the day. It touched an intra-day low of 1469.86 before rebounding to close off-low at 1472.95 on last minute buying of selected heavyweights. Chart-wise, the benchmark index formed Doji candlestick, which indicates a pause to the up move or hesitation of the market to climb further after a substantial gain in two days; and the key index is expected to continue its correction and consolidation.

MACD continued to climb higher, as shown by its histogram, indicating strong upward momentum. RSI(14) at 84.9 has hooked downward, reflecting the correction. It is however, still in the seriously overbought zone. Stochastic at 99.3 is in the overbought zone, and continued to climb up further; indicating the short term up cycle remained intact. Signals from the indicators are indicating a very strong underlying uptrend, which is seriously overbought, and a correction is expected to bring down the overbought situation.

The underlying uptrend of the FBM KLCI remained very strong as indicated by the index staying above all the short, medium and long term moving averages that are all pointing northeast. The key index is expected to correct downward; however, it should be viewed as an opportunity to accumulate quality stocks at lower price level.

Overnight, the Dow rose +22.10 points or +0.21% higher to close at 10,594.83. Today, the FBM KLCI is likely to trade within a range of 1463 to 1478.

This week's expected range: 1412 – 1490
Today’s expected range: 1463 – 1478

Resistance: 1474, 1476, 1478
Support: 1463, 1468, 1470

FBM KLCI - close at 32-months new high!

Stocks on Bursa Malaysia closed broadly higher yesterday led by finance stocks on reports of positive response to the new banking sector guidelines and a firmer Ringgit. Buying across-the-board intensified as the underlying sentiments remain bullish, with Genting and Public Bank topping the gainers' list. The benchmark FBM KLCI index gained 17.48 points or 1.20% to close at 1,474.44, a record for the year and last seen 32 months ago in January 2008. Gainers outnumbered losers by 503 to 274 while 270 counters were unchanged. Turnover advanced to 1.040 billion shares worth RM2.127 billion from Monday's 843 million shares worth RM1.991 billion.

The FBM KLCI opened 0.66 points higher at 1457.62 and continued to move higher throughout the day with intermittent mild intra-day profit-taking, however, buyers were in full-charged, which pushed the key index to close at the highest level for the day. Chart-wise, the key index formed another bullish Marubozu candlestick which indicates the bulls were in full control of the day. However, the appearance of an overly bullish candlestick near the top may be a sign of pushing up for distribution, hence, beware of the bear.

MACD continued to surge higher, indicating the upward momentum remained very strong. RSI(14) at 86.4 is seriously overbought but also indicates the index is extremely bullish, this reading of RSI for the FBM KLCI was last seen in February 8, 2007, may forewarn of an imminent correction, and the index may continue to move higher after the correction. Stochastic at 97.9 continued to move higher, indicates the short term up cycle continued to remain strong. Signals from the indicators are indicating an overly bullish state of the FBM KLCI, and a correction is expected ahead.

The underlying uptrend of the FBM KLCI remained very strong as indicated by the index staying above all the short, medium and long term moving averages that are all pointing northeast. A pullback correction to the overbought situation is expected to take place; however, it should be viewed as an opportunity to further accumulate quality stocks at lower price level.

Overnight, the Dow fell -17.64 points or -0.17% lower to close at 10,526.49. Today, the FBM KLCI is likely to trade within a range of 1445 to 1492.

This week's expected range: 1412 – 1490
Today’s expected range: 1445 – 1492

Resistance: 1480, 1486, 1492
Support: 1445, 1451, 1463

FBM KLCI - up on bullish sentiments

Stocks on Bursa Malaysia ended broadly higher yesterday with the benchmark FBM KLCI index at its highest level since January 2008, the bullish market was in line with the positive sentiment in regional markets on encouraging economic data from China and the US. The FBM KLCI advanced 19.18 points to 1,456.96 after opening 1.48 points higher at 1,439.26. Gainers led losers by 542 to 218 while 254 counters were unchanged. Turnover advanced to 843 million shares worth RM1.991 billion from last Thursday's 449 million shares worth RM861.1 million.

The FBM KLCI opened with an up gap of 1.48 points and traded higher for the rest of the day to close at the highest level for the day at 1456.96. It formed a bullish Marubozu candlestick, which indicates the bulls or buyers were in control throughout the day. With the strong buying momentum, the key index is expected to move higher to test the next higher target levels at 1465 and 1473.

Daily MACD hooked up sharply, indicating a strong increased in upward momentum. RSI(14) at 83.3 surged up strongly from 78.5 on last Thursday, indicating an extremely bullish state of the key index, and is short term overbought. Stochastic oscillator at 93 has crossed above its slow stochastic, indicating the up cycle is continuing its uptrend after pausing for a short while last week. Signals from the indicators are indicating a very bullish state of the benchmark FBM KLCI index, and the index is likely to continue moving higher.

The underlying uptrend of the FBM KLCI remained very strong as indicated by the index staying above all the short, medium and long term moving averages that are all pointing northeast.

Overnight, the Dow rose +81.36 points or +0.78% higher to close at 10,544.13. Today, the FBM KLCI is likely to trade within a range of 1427 to 1475.

This week's expected range: 1412 – 1490
Today’s expected range: 1427 – 1475

Resistance: 1463, 1468, 1475
Support: 1427, 1433, 1445

FBM KLCI - range-bound with an upward bias

Stocks on Bursa Malaysia ended last week ahead of the Hari Raya holiday on a positive note, recovering from recent losses, amid improved sentiments on Wall Street. The market was in negative territory throughout the week after the strong run-up over the past few weeks, as investors were reluctant to take any long positions and is unwinding ahead of the Raya holidays. The benchmark FBM KLCI index advanced 3.64 points higher at 1,437.78, after a half-day trading on last Thursday, the eve of Hari Raya. Week-on-week, it gained 2.11 points, or 0.15% compared with 1,435.67 the previous Friday. The weekly turnover dwindled to 2.442 billion shares worth RM4.493 billion from 2.861 billion shares valued at RM7.428 Billion the previous week.

The FBM KLCI opened last Monday on a weak note, and was in a correction mode, it lost a marginal 0.99 point and formed a black spinning-top candlestick. It continued to slide lower on Tuesday when it closed 0.41 point lower to 1434.27 on low volume, forming a Doji candlestick. On Wednesday, the key index fell to the intra-week low of 1428.66 but rebounded to close a marginal 0.13 point lower at 1434.14, forming a Hammer candlestick, which is a bottom reversal signal, and the index continued the rebound on last Thursday to close the week at 1437.78, forming a bullish white candlestick, confirming the reversal signal of the Hammer candlestick.

On the weekly chart, the benchmark index formed a black spinning-top candlestick which indicates indecision of the market to move up further and marked a pause or consolidation to the three-week uptrend. In the coming week, if the key index could not march above the recent high or resistance of 1441.80, then, it is likely that it will continue its consolidation. On the daily chart, it formed a bullish candlestick on last Thursday, which is a confirmation to the reversal signal of the Hammer candlestick formed last Wednesday, hence, it may continue its upward momentum to re-test the recent high of 1441.80. However, the index is expected to meet strong resistance at the 1441 to 1450 zone.

Weekly MACD continued to climb higher, indicating the medium term upward momentum is still strong. Daily MACD, however, continued to slide lower for the fifth consecutive days as indicated by its histogram, reflecting the correction and consolidation mode of the benchmark index over the last few days.

Weekly RSI(14) at 76.4 is tapering off indicating a slow down in the medium term upward strength. Daily RSI(14) at 78.5, has however, hooked up, reflecting the rebound and a possible end to the correction over the four days, and it is still in the very bullish zone.

Weekly Stochastic at 97, has hooked down, nevertheless, it is still very strong as it remained above its weekly slow Stochastic. Daily Stochastic at 88.7 has hooked up, but is still below its daily slow Stochastic, indicating the correction is not over yet.

The underlying uptrend of the FBM KLCI remained intact as indicated by the short medium and long term moving averages that are all pointing northeast. As the key index again closed above the 5-day moving average, it indicates the short term correction might be over and the key index might continue its upward journey.

As this week is also a holiday-shortened week due to the Malaysia Day holiday which falls on Thursday, 16 September, and the market is likely to be still in the Raya mood as many take extended leave till Wednesday, hence, the market is likely to go sideways or range-bound with an upward bias and might track the performance of key regional indexes.

The Dow rose +47.53 points or +0.46% higher to close at 10,462.77 on last Friday. This week, the FBM KLCI may trade within a range of 1412 to 1458, and for today it is likely to trade within a range of 1430 to 1443.

This week's expected range: 1412 – 1458
Today’s expected range: 1430 – 1443

Resistance: 1439, 1441, 1443
Support: 1430, 1432, 1434

FBM KLCI - marginally lower with the formation of Hammer candlestick

Stocks on Bursa Malaysia closed mostly lower yesterday with the benchmark index extending its loss for the fourth consecutive day in quiet trading ahead of the long weekend holiday. Regional market sentiments were sluggish amid renewed fears of Europe’s debt crisis. The FBM KLCI lost 0.13 point or 0.01% to 1434.14. Losers outnumbered gainers by 409 to 263 while 281 counters were unchanged. Turnover dwindled to 607 million shares worth RM1.038 billion from 641 million shares worth RM1.172 billion on Tuesday.

The FBM KLCI opened 1.29 point lower at 1432.98 and was trading in the negative territory for the whole day, it touched the intra-day low of 1428.66, and a last minute buying of selected heavyweights help lift the benchmark index to close off low, reducing the loss to a marginal 0.13 point. Chart-wise, the key index formed a Hammer candlestick which is a bottom reversal signal, and the index is likely to rebound today. The key index has tested the support of its immediate support zone at 1422 to 1431 and rebounded off it. Overhead resistance zone remained at 1437 to 1442.

MACD continued to slide lower, indicating the loss in upward momentum. As it is still above its signal line, the downward move of the index is viewed as just a mild correction. RSI(14) at 77.3 continued to slide lower but is tapering off, reflecting the current correction mode of the index. Stochastic at 88 continued to slide southward is reflecting the loss in market strength, as it is still above the 80 mark, the move is considered a mild correction.

The underlying longer term uptrend of the FBM KLCI remained intact, with the immediate very short term 5-day trend starting to turn weak as the key index is now below the 5-day MA. Immediate downside support for the key index is at 1422 to 1431, while the overhead resistance zone is at 1437 to 1442.

Today, trading on Bursa Malaysia will be closed for the afternoon session in conjunction with the eve of Hari Raya Aidilfitri, and is close tomorrow for Hari Raya celebration, the market is expected to remain quiet, and the benchmark index is likely to continue drifting or track the performance of regional indexes.

Overnight, the Dow rose +46.32 points or +0.45% to close at 10,387.01. Today, the FBM KLCI is likely to trade within a range of 1425 to 1440.

This week's expected range: 1389 – 1473
Today’s expected range: 1425 – 1440

Resistance: 1436, 1438, 1440
Support: 1425, 1427, 1430

FBM KLCI - marginally lower

Stocks on Bursa Malaysia ended broadly lower yesterday with the benchmark index staying in the negative region amid continued profit-taking in heavyweights, there were however buying interest in some lower liners and plantation stocks despite the generally weak market sentiment, as investors were reluctant to take any long positions and unwound ahead of the Hari Raya holidays starting on Friday. The FBM KLCI fell 0.41 point or 0.03% to 1434.27 on low volume. Market breadth was negative with decliners leading advancers by 354 to 336 while 286 counters were unchanged. Turnover was lower at 641 million shares worth RM1.172 billion from 743 million shares worth RM1.421 billion the day before.

The FBM KLCI opened 0.35 point lower and traded in a narrow range; it was fluctuating between the intra-day high of 1436.65 and the low of 1432.52, and was staying in the negative territory for most part of the day. Chart-wise, the key index formed a Doji candlestick which indicates consolidation and indecision of market direction. The index is now closing below the 5-day moving average (MA) which is at 1435.53; it is likely to exert some short term selling pressure on the key index and the index is likely to further correct downward. However, the 10-day MA at 1422 is likely to provide support to the key index.

MACD continued to curve down as shown by its shorter histogram, indicating a slow down in the upward momentum. RSI(14) at 77.4 continued to slide lower indicating a gradual loss in market strength, is still in the overbought zone, and might slide further downward. Stochastic at 90.3 is also sliding lower but still in the short term overbought zone. Signals from the indicators are indicating a loss in upward momentum of the key index, and it may transform into a downward momentum.

The underlying short, medium and long term uptrend of the FBM KLCI remained intact, with the immediate very short term 5-day trend starting to turn weak. Immediate downside support for the key index is at 1422 to 1431, while the overhead resistance zone is at 1437 to 1442.

As Bursa Malaysia will open for only half a day on Thursday, September 9, and close on Friday for Hari Raya celebration, the market is expected to remain quiet, and the benchmark index is likely to continue drifting or track the performance of regional indexes.

Overnight, the Dow fell -107.24 points or -1.03% to close at 10,340.69. Today, the FBM KLCI is likely to trade within a range of 1426 to 1441.

This week's expected range: 1389 – 1473
Today’s expected range: 1426 – 1441

Resistance: 1436, 1438, 1441
Support: 1426, 1430, 1432

FBM KLCI - mild correction

Stocks on Bursa Malaysia closed mostly lower yesterday as the local bourse consolidates its recent gains. The market lost its momentum after the strong run-up over the last three weeks, however, sustained buying interest in selected banking stocks such as CIMB, AMMB and RHBCAP helped to narrow overall losses. The benchmark FBM KLCI lost 0.99 point or 0.07% to close at 1434.68 after opening 0.44 point higher at 1436.11. Losers led gainers by 370 to 316 while 277 counters were unchanged. Turnover decreased to 743 million shares worth RM1.421 billion from 922 million shares worth RM1.718 billion last Friday.

The FBM KLCI opened 0.44 point higher and traded to the intra-day high of 1440.01 in the first half an hour before profit-taking activities sent it to the intra-day low of 1431.68. Late buying interest on selected heavyweights lifted the index to close off-low. Chart-wise, the key index formed a spinning-top candlestick which indicates indecision of market direction and consolidation. The key index tested the support by the 5-day moving average (MA) at 1433.17 and rebounded off it, if the index can’t hold above 1430 it may come down to test the next lower support by the 10-day MA at 1419.

Daily MACD continued to move higher but is tapering off, as shown by its shorter histogram, indicates a loss in upward momentum. RSI(14) at 77.8 continued to slide lower, indicating a loss in upward strength. Stochastic at 94.2 has crossed below its slow stochastic, however, is still in the overbought zone, reflecting the current state of consolidation.

The underlying short, medium and long term trend of the FBM KLCI remained in the upward direction. For the immediate term, the benchmark index may continue to consolidate or correct downward as indicated by the technical signals. However, the correction may be shallow; hence, it should be viewed as an opportunity to accumulate quality shares at lower price level. Second and third liners may continue to be in rotational play.

The US market was closed for Labor Day holiday yesterday. Today, the FBM KLCI is likely to trade within a range of 1423 to 1448.

This week's expected range: 1389 – 1473
Today’s expected range: 1423 – 1448

Resistance: 1440, 1444, 1448
Support: 1423, 1427, 1431

FBM KLCI - ripe for consolidation

Stocks on Bursa Malaysia were in two different trends last week with the benchmark index charting new highs, pushed up by index link heavyweights while second and third liners were in correction mode. The FBM KLCI rose 24.62 points or 1.74%, week-on-week, to close at 1435.67 on Friday. Weekly turnover decreased to 2.861 billion shares valued at RM7.428 billion from 4.02 billion shares worth RM7.55 billion the previous week, as last week had only four trading days due to the National Day holiday.

The FBM KLCI opened last Monday on a positive note with an up gap of 1.93 points at 1412.98, and this become the intra-week low as the key index continued to climb higher from there. Bursa Malaysia was closed on Tuesday for National Day celebration. The index continued to close higher on Wednesday despite heavy profit-taking activities during the day. The key index opened with an up gap of 5.55 points on Thursday and was faced with heavy profit-taking during the day, but last hour buying managed to push the index to close near the day’s high, forming a Hanging-man candlestick, which is a top reversal signal, and true enough, the index corrected on Friday which confirmed the reversal signal of the Hanging-man candlestick.

On the weekly chart, the benchmark FBM KLCI formed a bullish white candlestick which indicates continuation of the current up trend. On the daily chart, the index, however, formed a bearish black candlestick which confirmed the reversal signal generated by the Hanging-man candlestick formed on Thursday, hence, the index may continued to consolidate in the coming week. However, the underlying longer term trend as indicated by the weekly chart is still strong, and the correction may be shallow.

Weekly MACD continued to move higher, reflecting the strong medium term upward momentum. Daily MACD too is climbing higher, however, its histogram has turned shorter, reflecting the slow down in upward momentum caused by the correction on last Friday. Weekly RSI(14) at 76.2 is very bullish, but is overbought. Daily RSI(14) at 78.8 has hooked down from its high of 83.9 on Thursday, is still in the overbought territory. Weekly Stochastic at 97.9 continued to move higher, indicates the medium term uptrend is very strong. Daily Stochastic at 95.6 has turned sideways, but remained overbought.

Signals from the indicators are indicating a very strong medium term uptrend, and the index may continue to test higher level of resistances. For the short or immediate term, the index may face correction, as it is technically ripe for it. However, the correction maybe shallow due to a strong underlying trend, hence, it should be viewed as an opportunity to accumulate quality stocks at lower price levels during the correction.

As the encouraging second quarter corporate results were already reflected in the bullish FBM KLCI, and the coming week is also a holiday-shortened week, the market is expected consolidate its recent gains and to track the performance of regional bourses. Immediate overhead resistance zone for the coming week is envisaged at 1440 to 1473, while the immediate support zone will lies at 1400 to 1418.

The Dow rose +127.83 points or +1.24% higher to close at 10,447.93 on last Friday. This week, the FBM KLCI may trade within a range of 1389 to 1473, and for today it is likely to trade within a range of 1423 to 1448.

This week's expected range: 1389 – 1473
Today’s expected range: 1423 – 1448

Resistance: 1440, 1444, 1448
Support: 1423, 1427, 1431

FBM KLCI - appearance of hanging-man candlestick

Stocks on Bursa Malaysia ended broadly higher yesterday with the benchmark index touching another new high supported by buying interests on selected key heavyweights. The FBM KLCI rose by 9.11 points or 0.64% to close at 1441.07, after opening 5.55 points steadier at 1437.51. It had touched an intra-day high of 1441.8, surpassing the 1439.49 points set on Jan 18, 2008. Advancers outnumbered decliners by 511 to 256 while 258 counters were unchanged. Turnover increased to 1.075 billion shares valued at RM1.872 billion from 949 million shares valued at RM2.077 billion the day before.

The FBM KLCI opened with an up gap of 5.55 points and surged to hit the intra-day high of 1441.80 within the first fifteen minutes, profit-taking activities immediately surfaced and sent the key index to the intra-day low of 1431.71 before late afternoon buying interests lifted it to close near the day high. Chart-wise, the price action of the key index formed a hanging-man like candlestick which is a top reversal signal; however, it needs a confirmation today. As the key index continued moving higher, the next level of key resistance to watch out is the 1450 psychological level, where the index is expected to face heavy selling.

MACD continued to climb higher, indicates the continuation of upward momentum is still strong. RSI(14) at 83.9 is extremely bullish and is short term seriously overbought. Stochastic at 95.8 indicates very strong market strength, and is short term overbought. Signals from the indicators are indicating a very bullish state of the benchmark index, it is, however, very much overbought and a correction is imminent.

The underlying short, medium and long term trend of the FBM KLCI remained strongly pointing up, however, a short term correction is imminent as the index approaches its key resistance area. Immediate overhead resistance zone is now at 1445 to 1450 while the immediate downside support zone is at 1400 to 1423.

Overnight, the Dow rose +50.63 points or +0.49% higher to close at 10,320.10. Today, the FBM KLCI is likely to trade within a range of 1424 to 1452.

This week's expected range: 1370 – 1445
Today’s expected range: 1424 – 1452

Resistance: 1445, 1448, 1452
Support: 1424, 1428, 1434

Stock to watch: UEMLAND

FBM KLCI - higher amidst heavy profit taking

Stocks on Bursa Malaysia ended mixed yesterday with the benchmark index continued to chart new high supported by strong buying interest in key heavyweights, while second and third liners undergo corrections. The FBM KLCI rose 9.47 points or 0.67% to close at 1431.96 after opening 7.28 points higher. Losers outpaced gainers by 476 to 307 while 270 counters were unchanged. Turnover increased to 949 million shares, worth RM2.077 billion, compared with Monday's 769 million shares valued at RM1.76 billion.

The FBM KLCI opened with an up gap of 7.28 points at 1429.77 and surged to the intra-day high of 1436.73 within the first hour of trading, thereafter, heavy profit-taking activities set in and sent the index to the intra-day low of 1424.98, however, last minute buying of selected heavyweights artificially lifted the key index to close at 1431.96, forming a spinning-top candlestick in a possible star position. The price action of the key index indicates heavy distribution at this level, and the appearance of this candlestick indicates indecision of the market to move higher, and may take a pause. 1436 was the pivot high formed on February 14, 2008 and marked an important resistance level and will attract heavy selling activities. If the key index is able to break through the 1436 key resistance level, then it may test the next target level at 1450.

MACD continued to move higher indicating the upward momentum is still strong. RSI(14) at 82.1 has move into the heavily overbought zone and a correction is imminent, however, it also indicates that the market strength is very strong and may continue to scale new high after the correction. Stochastic at 94.1 has hooked down reflecting the pull-back of the index from its intra-day high; nevertheless, it is still in the very bullish zone and is also short term overbought.

The underlying short, medium and long term trend of the FBM KLCI remained strongly pointing up, however, a short term correction is imminent as the index approaches its key resistance area. Immediate overhead resistance zone is now at 1436 to 1450 while the immediate downside support zone is at 1400 to 1420.

Overnight, the Dow rose +254.75 points or +2.54% higher to close at 10,269.47. Today, the FBM KLCI is likely to trade within a range of 1414 to 1448.

This week's expected range: 1370 – 1445
Today’s expected range: 1414 – 1448

Resistance: 1437, 1443, 1448
Support: 1414, 1419, 1425

FBM KLCI - bullish close on 31-month high

Stocks on Bursa Malaysia closed mixed on Monday while the benchmark FBM KLCI index continued to chart new high. The FBM KLCI rose 11.44 points or 0.81% to close at 1422.49 on Monday, a 31-month high, since February 2008, driven by strong buying interest in key heavyweights like Genting, Maybank and Sime Darby. Market breadth was negative with losers led gainers by 377 to 334 while 281 counters were unchanged. Turnover increased to 769 million shares valued at RM1.759 billion compared with last Friday's 762 million shares worth RM1.532 billion. Bursa Malaysia was closed for the National Day celebration yesterday.

The FBM KLCI opened 1.93 points higher at 1412.98 and surged to the intra-day high of 1428.44 within the first half an hour and corrected itself on profit-taking activities. However, the key index was trading in the positive territory throughout the day, and traded higher after the intra-day correction. Chart-wise, it formed a bullish white candlestick which marked a continuation of the uptrend, and is likely to test the next level of resistance at 1436.

Daily MACD continued to climb higher and so is its histogram, signifying a strong upward momentum. RSI(14) at 79.9 is moving higher into the very bullish zone, and is short term overbought. Stochastic at 95.5 has hooked up and crossed above its slow stochastic, remained in the short term overbought zone, indicates very strong market strength.

The underlying uptrend of the FBM KLCI remained intact, with the short term 5 and 10-day moving averages providing support at 1410 and 1400 level. Immediate overhead resistance zone is at 1428 to 1445, while support zone is at 1400 to 1410.

In view of the announcement of corporate results has just ended and a lack of fresh leads, while weak external economic indicators might continue to influence sentiment on the local bourse, the market is likely to consolidate.

Overnight, the Dow rose +4.99 points or +0.05% higher to close at 10,014.72 after losing 141 points on Monday. Today, the FBM KLCI is likely to trade within a range of 1399 to 1444.

This week's expected range: 1370 – 1445
Today’s expected range: 1399 – 1444

Resistance: 1429, 1436, 1444
Support: 1399, 1406, 1414