Stocks on Bursa Malaysia ended mostly lower yesterday but modest gains in finance heavyweights Maybank and CIMB managed to push the benchmark index into the positive territory. Lack of follow-through support after the market barometer crossed the 1,500-mark in early trade, kept the benchmark index in the red most of the day. Investors were cautious and the global markets were volatile ahead of the US Federal Reserve's monetary policy meeting next week. The benchmark FBM KLCI ended almost unchanged at 1499.44, making a marginal gain of 0.33 of a point or 0.02%. Decliners led advancers by 427 to 350 while 287 counters were unchanged. Turnover was lower at 1.137 billion shares worth RM1.634 billion from 1.169 billion shares worth RM1.636 billion on Wednesday.
The FBM KLCI opened 1.08 points higher at 1500.19 and climb to the intra-day high of 1501.57 in the first hour of trade, heavy profit-taking activities that appeared pressed the key index to the intra-day low of 1495.55, before bargain hunting activities that surfaced in the afternoon lift the key index off low to closed at 1499.44. Chart-wise, the FBM KLCI formed a Doji candlestick with a long lower shadow which indicates the key index was taking a pause, and was undecided to move further. Hence, the key index might goes into consolidation before making its move to challenge the historical high level of 1524.69.
MACD continued to slide lower but in a much reduced pace and is turning almost flat, its histogram, however, is getting shorter upward, indicating a reduction in the bearish momentum. RSI (14) at 68.9 is marginally higher, but is tapering off, indicating a slow down in the upward momentum. Stochastic at 79.5 continued to climb higher, signifying the short term up cycle is still intact. Mixed signals of the indicators are indicating a possible consolidation of the FBM KLCI.
The FBM KLCI is currently still in a bullish state as it stays above all its short, medium and long term moving averages. However, from the readings of the indicators, it shows sign of tiredness, hence, might goes into consolidation before picking up steam to challenge the historical high of 1524.69. Overnight, the Dow fell -12.33 points or -0.11% lower to close at 11,113.95. Today, the FBM KLCI is likely to trade within a range of 1490 to 1508.
This week's expected range: 1459 – 1516
Today’s expected range: 1490 – 1508
Resistance: 1503, 1505, 1508
Support: 1490, 1493, 1496
Stocks to watch: GHLSYS, KFC, VS
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