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
No comments:
Post a Comment