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
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