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
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