FBM KLCI - bullish hammer candlestick formation

Stocks on Bursa Malaysia ended mixed yesterday, recouping early losses on late buying in recent decliners, in line with the general recovery at key regional markets. Late buying of Petronas Chemicals which was included into the 30-stock FBM KLCI yesterday and other heavyweights helped the benchmark index to close on a firmer note despite the weaker broader market. The FBM KLCI gained 3.90 points or 0.26% to close at 1495.95 after hitting an intra-day low of 1474.02. Losers outpaced gainers by 463 to 293 while 274 counters were unchanged. Turnover fell to 1.05 billion shares valued at RM1.93 billion from 1.57 billion shares valued at RM4.91 billion last Friday.

The FBM KLCI opened 3.48 points lower at 1488.57 and fell to the intra-day low of 1474.02 within the first 30 minutes, losing as much as 18.03 points at its worst, but recovered gradually on bargain-hunting activities. Strong buying interest on key heavyweights in late afternoon helped to push the key index to close at the high of the day. Chart-wise, the FBM KLCI formed a bullish white hammer candlestick, which is a strong bottom reversal pattern. The key index has now tested the support at 1476 and rebounded strongly, indicating the medium term support was strong. The key index may continue its rebound to move higher today, but strong resistance is expected at 1500 to 1506.

MACD continued to slide lower, but at a slower pace, as shown by the shorter histogram, indicating a gradual reduction in the downward momentum of the key index. RSI (14) at 49.6 has hooked up, but still below the 50 mark, and hence is in the neutral to mildly bearish zone. However, Stochastic at 33.8 has continued to move higher, indicating a possible beginning of a short term up cycle. Signals from the indicators indicate that the downward momentum of the FBM KLCI is gradually waning but has not yet turned strong, and hence, the key index is likely to remain range-bound with an upward bias.

The short term trend of the FBM KLCI remained down, as it is still below the 10 and 20-day moving averages (MA). However, it has closed above the 5-day MA yesterday, and this may exert some buying pressure to push the key index higher today. Nevertheless, strong overhead resistance is expected at 1500 to 1506, while immediate downside support zone is at 1488 to 1474. The longer term uptrend remained unspoiled.

Overnight, the Dow fell -39.51 points or -0.36% lower to close at 11,052.49. Today, the FBM KLCI is likely to trade within a range of 1459 to 1518.

This week's expected range: 1442 – 1526
Today’s expected range: 1459 – 1518

Resistance: 1503, 1511, 1518
Support: 1459, 1466, 1481

Stock to watch: KEURO, AIRASIA, MUHIBAH, KNM

FBM KLCI - further correction expected ahead

Stocks on Bursa Malaysia ended last Friday on a bearish note dragged by China's inflation worries, heightened tensions between North and South Korea coupled with Ireland's debt woes. The FBM KLCI ended the day 4.44 points or 0.30% lower at 1492.05, after opening 2.19 points higher at 1498.68. Week-on-week, it lost 14 points or 0.93% from previous Friday’s close of 1506.05. Weekly turnover increased to 6.179 billion shares valued at RM11.315 billion compared with previous week’s 4.56 billion shares worth RM6.166 billion.

The FBM KLCI opened 0.67 of a point higher at 1506.72 on last Monday; it touched the intra-week high of 1510.13 but finally settled at 1503.20. On Tuesday, the key index slumped 15.67 points or 1.04% to end at 1487.53 on news that North Korea launched a bomb strike on a South Korean island which sent shock waves across the region’s stock market. On Wednesday, stocks on Bursa Malaysia rebounded to close mostly higher as Asian stocks stabilized, the FBM KLCI rose 1.01 points to close at 1488.54. The rebound continued into Thursday with the FBM KLCI gaining 7.95 points to close at 1496.49 on steadier sentiments spurred by the strong close on Wall Street overnight. The improved sentiment did not last long, after North Korea on Friday warned of a war if its clash with the South escalated, and that sent the regional market broadly lower on Friday.

On the weekly chart, the FBM KLCI formed a bearish black candlestick with long lower shadow which indicates heavy selling pressure but strong buying support lifted the key index to close off its intra-week low near the mid range. It is now closing right above the 10-week MA which is at 1489.47. On the daily chart, the FBM KLCI formed a bearish engulfing candlestick over Thursday’s candle which indicates renewed selling pressure on the key index after two days of technical rebound. It looks like the corrective down waves is going to continue its move downward with potential targets at 1465, 1453 and 1438.

Weekly MACD continued to slide lower which indicates a continued loss of its medium term upward momentum, nonetheless, it is still above its weekly signal line, and hence the medium momentum has not turned bearish yet. Daily MACD continued to move lower and is approaching its zero-line, indicating the continuation of the short term negative momentum.

Weekly RSI (14) at 70.4 has continued to slide lower, indicating the continued loss in the medium term market strength. Daily RSI (14) is at 46.9, has again hooked downward and is at the mildly bearish zone.

Weekly Stochastic is at 80.3, and has continued to slide lower, and is sitting right on the 80 level, a break below the 80 level will confirmed the medium term down cycle. Daily Stochastic at 28.2 has, however, crossed above its slow stochastic line. Signals from the indicators indicate that the FBM KLCI is currently in a short term correction mode, and may further consolidate or correct downward.

The short term trend of the FBM KLCI is currently down as it is below all the short term moving averages (MA), it is however, still supported by the medium term 60-day MA which is currently at 1480. A break below the 1480 will likely to see the key index sliding downward to the 1465 level. The longer term uptrend still remained intact. Immediate support zone for the FBM KLCI is at 1470 to 1476 while the overhead resistance zone is at 1500 to 1530.

For the coming week, the FBM KLCI is expected to continue with its consolidation while tracking developments in the region. The outlook for the local market over the medium term is still good, underpinned by healthy economic fundamentals and ample liquidity floating around globally.

The Dow fell -95.28 points or -0.85% lower to close at 11,092.00 last Friday. This week, the FBM KLCI may trade within a range of 1442 to 1526, and for today it is likely to trade within a range of 1472 to 1513.

This week's expected range: 1442 – 1526
Today’s expected range: 1472 – 1513

Resistance: 1499, 1506, 1513
Support: 1472, 1479, 1485

FBM KLCI - rebound continued

Stocks on Bursa Malaysia closed higher yesterday with the benchmark FBM KLCI holding firmly above the 1,490 points level. The positive close on Wall Street overnight coupled with the steadier sentiment on key regional markets spurred buying interest in the local market. The FBM KLCI finished 7.95 points or 0.53% better at 1496.49 after opening 4.67 points higher at 1493.21. Gainers thumped losers by 463 to 291 while 287 counters were unchanged. Turnover was slightly lower at 1.000 billion shares valued at RM1.424 billion compared with Wednesday’s 1.065 billion shares valued at RM1.812 billion.

The FBM KLCI opened with an up gap of 4.67 points at 1493.21, and dropped to the intra-day low of 1491.80, but recovered swiftly and moved upward gradually to hit the intra-day high of 1498.05. The key index was basically moving sideways in the afternoon session, but a last minute buying of selected heavyweights helped pushed the key index to close higher at 1496.49. Chart-wise, the FBM KLCI formed a small white candlestick which indicates a continuation of the reversal that happens on Wednesday, but the market was treading cautiously. Immediate overhead resistance is now at the 1500 psychological level, and is also where the 30-day moving average (MA) located now. If the key index is able to close above this level, it will bring the bullish sentiments back to the market.

MACD continued to slide lower, but at a reduced rate, as shown by the shorter histogram. Nonetheless, the momentum is still weak. RSI (14) at 49.7 has hooked up, but still below the 50 level or is mildly bearish. Stochastic at 20.4 has gently hooked up from a previous reading of 19.3, indicating a stabilization of the downtrend. Readings from the indicators shows that the correction of the FBM KLCI has stabilized but has not turned bullish yet.

The short term trend of the FBM KLCI remained down, as it still close below the 10 and 20-day MA. However, a first sign of recovery is there, as the key index is currently closing above the 5-day MA. The key index will need to close above 1505 level in order for it to turn bullish again. Nevertheless, the medium to longer term uptrend is still intact.

US market was closed yesterday for the Thanksgiving Day holiday. Today, the FBM KLCI is likely to trade within a range of 1486 to 1505.

This week's expected range: 1470 – 1525
Today’s expected range: 1486 – 1505

Resistance: 1499, 1502, 1505
Support: 1486, 1489, 1492

FBM KLCI - rebounded to close marginally higher

Stocks on Bursa Malaysia rebounded to close mostly higher yesterday as Asian stocks stabilized after a sell-off sparked by North Korea's deadly shelling of a South Korean island. The FBM KLCI rose 1.01 points or 0.07% to close at 1488.54, after opening 7.63 points lower at 1479.9. Gainers led losers by 537 to 267 while 235 counters were unchanged. Turnover decreased to 1.065 billion shares valued at RM1.812 billion from 1.175 billion shares worth RM2.009 billion on Tuesday.

The FBM KLCI opened with a big down-gap of 7.63 points at 1479.90 on panic-selling, and fell to the intra-day low of 1476.82 within the first fifteen minutes. The key index rebounded to gradually move up to the intra-day high of 1493.01 before a last minute profit-taking sent it back below the 1490 level to close at 1488.54. Chart-wise the FBM KLCI formed a piercing-line candlestick which indicates counter-attack of the bulls after a day of sell down by the bears. The formation of this candlestick pattern indicates the market is taking a pause at the current level, and the short term down trend is not over yet until the key index close firmly above the 1500 psychological level again.

MACD continued to move lower indicating the downward momentum is still in-force. RSI (14) at 44.3 has gently hooked reflecting a weak rebound, and is still in the mildly bearish zone. Stochastic at 19.4 continued to move lower, and is entering the short term oversold zone. Readings from the indicators indicates that the FBM KLCI is still weak, however, might stage a rebound soon as it is short term oversold.

The short term trend of the FBM KLCI is still down, while its medium to longer term uptrend remained intact, hence, one should view this as an opportunity to buy quality shares at lower price level. Overnight, the Dow rose +150.91 points or +1.37% higher to close at 11,187.28. Today, the FBM KLCI is likely to trade within a range of 1463 to 1509.

This week's expected range: 1470 – 1525
Today’s expected range: 1463 – 1509

Resistance: 1495, 1502, 1509
Support: 1463, 1470, 1479

Stock to watch: Dialog, Sunway, Sunway-wc, Suncity, Mycron

FBM KLCI - lower on bear attack

Stocks on Bursa Malaysia ended yesterday on a bearish note with sentiment buoyed by external factors like the Ireland debt issue and the conflict between North and South Korea. On top of that, the just-announced third-quarter Gross Domestic Product figures were not favourable to the market. The FBM KLCI slumped 15.67 points or 1.04% to end at 1487.53, after opening 3.64 points better at 1506.84. Decliners overwhelmed advancers by 784 to 96 while 196 counters were unchanged. Turnover rose to 1.175 billion shares, valued at RM2.009 billion, from 968 million shares, worth RM1.165 billion on Monday.

The FBM KLCI opened 3.64 points higher and surged to the intra-day high of 1508.34 within the first thirty minutes. Thereafter, heavy selling pressure appeared which sent the key index lower with intermittent rebound, and end at the lowest point for the day. Chart-wise, the FBM KLCI formed a long black candlestick which confirmed the reversal signal issued by the dark-cloud-cover candlestick pattern formed on Monday. With this formation, the key index is likely to continue its momentum to move further downward. The FBM KLCI is now closing at the immediate support of 1487, it is likely to breach this support and move further southward on impulse wave ‘C’ with a likely target at 1466, 1454 and 1438.

MACD continued to slide lower with its histogram turned longer, signifying the increase in downward momentum. RSI (14) is at 43.6 and has plunged below the 50 level, marking the entry of the FBM KLCI into the bearish state. Stochastic at 26.2 has also turned downward, marking the resumption of the bearish momentum after a brief pause. Signals from the indicators are all pointing toward a bearish outlook for the FBM KLCI in the near term.

With the FBM KLCI closing below its 1500 psychological support level and also below its short term moving averages, the short term trend has turned downward. Nevertheless, the medium to longer term trend still remained up. Immediate support level for the FBM KLCI is at 1479, 1474 and 1465 while the immediate resistance is at 1500.

Overnight, the Dow fell -142.21 points or -1.27% lower to close at 11,036.37. Today, the FBM KLCI is likely to trade within a range of 1460 to 1501.

This week's expected range: 1470 – 1525
Today’s expected range: 1459 – 1501

Resistance: 1491, 1495, 1501
Support: 1460, 1474, 1479

FBM KLCI - down on profit-taking

Stocks on Bursa Malaysia closed mostly lower yesterday as investors were cautious ahead of the third quarter gross domestic product (GDP) data as economists expected a slower growth. The FBM KLCI was 2.85 points or 0.19% lower at 1503.20 after opening 0.67 points higher at 1506.72. Decliners outnumbered advancers by 398 to 350 while 289 counters were unchanged. Turnover dwindled to 968 million shares worth RM1.165 billion from 1.024 billion shares worth RM1.436 last Friday.

The FBM KLCI opened 0.67 of a point higher at 1506.72 and surged to the intra-day high of 1510.13 within the first thirties minutes. Thereafter, profit taking activities emerged and sent the key index gradually southward to the intra-day low of 1502.82 with intermittent rebound, and finally settled off low at 1503.20. Chart-wise, the price action of the key index formed a dark-cloud-cover candlestick pattern which is a reversal pattern. The formation of this indicates players were quick to lock-in profits on rebound, hence, sent the key index back into its consolidation range. Immediate strong resistance is seen at the 1510 level.

MACD continued to slide lower, but at a slower pace, as shown by the shorter histogram. This indicates the downward momentum is waning gradually but has not turn upward yet. RSI (14) at 53.4 has hooked downward, moving back into the neutral zone. Stochastic at 32.9 is almost flat, and continued to stay below its slow stochastic line, signifying the reversal strength is still relatively weak. Readings from the indicators indicates the FBM KLCI might continue to move sideways.

The FBM KLCI is now bound between the 10-day moving average (MA) on top and the 30-day MA below, they formed the immediate resistance at 1508 and support at 1500. A breakout in either direction would see the key index continue moving in the breakout direction. The underlying medium to longer term uptrend remained intact. Immediate overhead resistance zone is at 1510 to 1532 while the downside support zone is at 1500 to 1487.

Overnight, the Dow fell -24.97 points or -0.22% lower to close at 11,178.58. Today, the FBM KLCI is likely to trade within a range of 1493 to 1517.

This week's expected range: 1470 – 1525
Today’s expected range: 1493 – 1517

Resistance: 1508, 1513, 1517
Support: 1493, 1498, 1500

FBM KLCI - likely to move higher

Stock on Bursa Malaysia closed last Friday on a positive note with investor sentiment boosted by the overnight rally on Wall Street and strong buying in blue-chip stocks. The FBM KLCI ended last Friday 9.4 points or 0.63% higher at 1506.05, after opening 4.16 points better at 1500.81. On a Friday-to-Friday basis, the FBM KLCI closed 6.24 points higher compared with 1499.81 the previous Friday. For the holiday-shortened week, the market had moved within a tight range. Weekly turnover declined to 4.56 billion shares, worth RM6.166 billion, from 8.204 billion shares, valued at RM11.334 billion the previous week.

The FBM KLCI opened last Monday 0.2 point lower at 1499.61 and slipped to the intra-day low of 1497.04, it rebounded and traded sideways in a narrow range throughout the day to close 1.75 points higher at 1501.56. On Tuesday, the FBM KLCI fell to the intra-day low of 1491.76 before rebounding to close 1.98 points higher at 1503.54 on news that South Korea was the latest to follow China to raise interest rate. The market was closed on last Wednesday for the Hari Raya Aidiladha celebration. On Thursday, The FBM KLCI opened 3.23 points lower at 1500.31 and plunged to the intra-day low of 1487.21 within the first thirty minutes, losing 16.33 points at its worst, the key index gradually recovered its lost ground to close the day 6.89 points lower at 1496.65. And on Friday, the key index rebounded strongly to close 9.4 points higher at 1506.05.

On the weekly chart, the FBM KLCI formed a hammer candlestick which indicates sellers were initially dominant in pushing the key index to its intra-week low of 1487.21, but later buyers fought back to push the key index to close near the high of the week at 1506.05. The appearance of the hammer candlestick after the formation of bearish engulfing candlestick pattern the previous week signifies the short term correction is probably over, and the market might continue its rebound to move higher this week.

On the daily chart, the FBM KLCI formed a bullish white candlestick with short lower and upper shadows, which indicates the bull was very much in control. The candlestick formed is a confirmation to the reversal signal issued by the hammer candlestick formed on last Thursday. Hence, the key index is likely to continue its rebound to move higher.

Weekly MACD continued to slide lower, indicating the slow down in the medium term upward momentum. It is however, still positive. Daily MACD continued to slide lower, but at a slower pace, as shown by the shorter histogram, indicating a slow down in the short term downward momentum.

Weekly RSI (14) is at 76.3 and has hooked up, reflecting the rebound on the weekly chart, and is still staying firm in the very bullish zone. Daily RSI (14) has rebounded strongly from 49.4 on last Thursday to 55.5 on Friday, moving back to the neutral to mildly bullish zone.

Weekly Stochastic is at 88.8 and has crossed below its slow stochastic line, reflecting the correction, it is however, still strong until it crossed below the 80 mark. Daily Stochastic is at 32.8 and has turned upward after hitting the low at 28.9 on last Thursday, it is however, still below its slow stochastic line, and the correction would be considered over when the stochastic crossed above its slow stochastic line.

Readings from the indicators and candlestick show that the correction on the FBM KLCI is nearing over, but still require one or two more days’ data for confirmation.

On the trend side, the FBM KLCI is currently holding above the 30-day moving average and is also above the psychological support level of 1500. As it is still below the 10-day MA, the short term trend is still considered sideways. However, the medium to longer term uptrend still remained intact. Immediate overhead resistance zone of the FBM KLCI is at 1510 to 1532 while its immediate support zone lies at 1500 to 1487.

For the coming week, the FBM KLCI is expected to trade higher following positive indicators that Asian equities have stabilized as fears of China hiking interest rates fizzle out, and the European debt crisis was also effectively being contained by the European policymakers.

The Dow rose 22.32 points or +0.20% higher to close at 11,203.55 last Friday. This week, the FBM KLCI may trade within a range of 1470 to 1525, and for today it is likely to trade within a range of 1495 to 1513.

This week's expected range: 1470 – 1525
Today’s expected range: 1495 – 1513

Resistance: 1508, 1510, 1513
Support: 1495, 1498, 1501

FBM KLCI - lower with strong buying support

Stocks on Bursa Malaysia closed lower yesterday as investors remained sidelined due to lack of market-stimulating news, and continued selling of blue-chips dragged the key index to finish the day in the negative territory. The FBM KLCI finished 6.89 points easier at 1496.65 after opening 3.23 points lower at 1500.31. Advancers led decliners by 404 to 362 while 288 counters were unchanged. Turnover declined to 1.124 billion shares worth RM1.737 billion compared with Tuesday's 1.325 billion shares valued at RM1.736 billion.

The FBM KLCI opened 3.23 points lower at 1500.31 and plunged to the intra-day low of 1487.21 within the first thirty minutes, losing 16.33 points at its worst. Thereafter, the key index gradually recovered its lost ground to close the day 6.89 points lower at 1496.65. Chart-wise, the FBM KLCI formed a hammer candlestick, which is a bottoming signal. It indicates strong buying support from the bulls which helped to push the price far up from its low. The key index have tested the 1487-1488 level twice and rebounded strongly off it, and hence is likely to have seen its bottom for the current correction.

MACD continued to slide lower, indicating the continued loss in momentum of the key index. RSI (14) at 49.4 has hooked downward and move into the mildly bearish territory. Stochastic at 28.9 continued to move lower but is tapering off, indicating a slow down in the downward momentum. Readings from the indicators are indicating a relatively weak market, and hence, the key index may continue to consolidate in the near term.

The short term trend of the FBM KLCI is currently down, while its medium to longer term trend is still up. The key index is currently closing below the 30-day moving average (MA), which is now at 1499.08, and is also below its other short term MAs; they may continue to exert selling pressure on the key index, however, the medium term MAs will continued to provide support for the key index when it corrects. Immediate support zone is at 1470 to 1487 and the overhead resistance zone is at 1500 to 1532.

As the current correction is just part of a bigger uptrend, one should view it as an opportunity to accumulate quality shares at lower price level. Overnight, The Dow rebounded strongly by +173.35 points or +1.57% higher to close at 11,181.23. Today, the FBM KLCI is likely to trade within a range of 1476 to 1513.

This week's expected range: 1450 – 1528
Today’s expected range: 1476 – 1513

Resistance: 1503, 1508, 1513
Support: 1476, 1481, 1487

FBM KLCI - maintained above 1500

Stocks on Bursa Malaysia closed broadly lower on Tuesday in line with the fall in regional markets as fears loomed over the possibility of China further tightening its monetary policies. South Korea was the latest to follow China with the Bank of Korea raising the seven-day repurchase rate on Tuesday by 0.25 percentage point to 2.5%. The local market was closed for Hari Raya Aidil Adha yesterday and this also prompted investors to off load their positions ahead of the holiday.

However, the FBM KLCI finished 1.98 points higher at 1503.54 led by modest gains in selected blue-chips. Decliners led advancers by 645 to 203 while 253 counters were unchanged. Turnover increased to 1.325 billion shares valued at RM1.736 billion, compared with Monday’s 1.087 billion shares, worth RM1.256 billion.

The FBM KLCI opened 1.55 points higher at 1503.11 and was holding well in the positive territory throughout the morning session. However, the index plunged to the intra-day low of 1491.76 in the afternoon session following the plunged in regional markets on news of Korea’s interest rate rise. Nevertheless, bargain-hunting in late afternoon helped lift the key index off-low and a last minute buying of selected heavyweights pushed the key index back to the positive territory to close at 1503.54.

Chart-wise, the FBM KLCI formed a Doji candlestick with long lower shadow which indicates strong buying support for index-link counters when the key index came below the 1500 psychological support level. The key index is now below the short term 5 and 10-day moving averages (MA) which will continue to exert selling pressure to the key index. However, the medium term 30, 50 and 60-day MAs will continue to provide support to the key index at 1497, 1481 and 1470.

MACD continued to slide lower indicating the increased in downward momentum, nevertheless, as MACD is still above the zero line, the current weakness is just a short term correction. RSI (14) at 54.5 has climb higher, but still in the neutral zone. Stochastic oscillator has dropped to 30.9, indicating the continuation of downward momentum and the down cycle. Mixed signals from the indicators indicate the key index will continue its consolidation with a downward bias.

The short term trend is currently down as the 5-day MA has just crossed below the 10-day MA. The medium to longer term trend is, however, still up and will provide support to the short term correction. Immediate support zone for the key index is at 1488 to 1470, while the overhead resistance zone is at 1510 to 1532. Critical support levels at the moment are the 1500 psychological level and the 1497 support level provided by the 30-day MA, if the FBM KLCI closes below these levels, it may trigger another round of sell down.

Overnight, The Dow fell -15.62 points or -0.14% lower to close at 11,007.88. Today, the FBM KLCI is likely to trade within a range of 1482 to 1517.

This week's expected range: 1450 – 1528
Today’s expected range: 1482 – 1517

Resistance: 1508, 1513, 1517
Support: 1482, 1487, 1495

FBM KLCI - rebounded to close above 1500

Stocks on Bursa Malaysia ended mixed yesterday with the benchmark FBM KLCI rebounded to close 1.75 points or 0.12% higher at 1501.56 after two consecutive days of heavy profit-taking last week. Losers led gainers by 442 to 330 while 288 counters were unchanged. Turnover dropped drastically to 1.086 billion shares worth RM1.256 billion from Friday’s 1.724 billion shares worth RM2.393 billion.

The FBM KLCI opened 0.2 of a point lower at 1499.61and slipped to the intra-day low of 1497.04 within the first half-an-hour; it then rebounded to the intra-day high of 1503.56 and traded sideways in a narrow range throughout the day. Chart-wise, the FBM KLCI formed a small white spinning-top candlestick, which indicates indecision of the market direction and consolidation. The key index is likely to consolidate around current level for a while before making its way back to re-visit the top.

MACD continued to slide lower, nonetheless, is still above the zero line, indicating the loss of upward momentum and the key index is going into a correction or consolidation mode. RSI (14) at 53.2 has hooked up slightly, reflecting the mild rebound, and the market strength is currently neutral. Stochastic at 37.9 continued to slide lower, indicates the continuation of the down cycle. Readings from the indicators indicates the FBM KLCI is likely to go into a consolidation mode.

The FBM KLCI is currently staying below its short term 5, 10 and 20-day moving averages (MA), but is above its 30-day MA, which indicates short term correction. However, the moving averages have not made any dead-cross yet, if the key index is able to close above 1512, it may resume its uptrend, and otherwise it may consolidate around current level. If the key index closes below the 30-day MA support at 1496, it may slide lower to re-test its immediate support at 1488.

The benchmark FBM KLCI is likely to continue with its consolidation, while the second and third liners are likely to remain active and in rotational play. Overnight, The Dow rose +9.39 points or +0.08% higher to close at 11,201.97. Today, the FBM KLCI is likely to trade within a range of 1491 to 1513.

This week's expected range: 1450 – 1528
Today’s expected range: 1491 – 1513

Resistance: 1504, 1507, 1513
Support: 1491, 1494, 1498

Stock to watch: SALCON

FBM KLCI - expect to correct further

Stocks on Bursa Malaysia finally succumbed to profit-taking pressure last Friday after rising consecutively for six straight weeks as Asian markets plunged on concern over possible further monetary tightening in China, and renewed worries concerning the Euro-zone crisis as investors fretted over the possibility of Ireland defaulting on its sovereign debt. The FBM KLCI fell 13.89 points or 0.92% to close at 1499.81 on last Friday, and week-on-week, it lost 11.93 points compared with 1511.74 the previous week. The total weekly turnover soared to 8.204 billion shares valued at RM11.334 billion from 5.075 billion shares valued at RM6.168 billion the previous week.

The FBM KLCI opened last Monday with an up gap of 5.27 points at 1517.01 and surged to the intra-day high of 1522.77 in the morning, and close at 1519.84, charting a new record close for the key index. The FBM KLCI continued to chart another record high when it closed 6.68 points higher at 1526.53 on last Tuesday. And on Wednesday, the benchmark FBM KLCI gained 1.48 points to post a second consecutive historic high of 1528.01 but was off its intra-day high of 1531.99. The key index saw its main decline last Thursday when it lost 14.31 points to close at the lowest level of the day at 1513.70, and Friday was a continuation of the downtrend which saw panic selling sending the key index to the intra-day low of 1488.06 before rebounding to close the week at 1499.81.

On the weekly chart, the FBM KLCI formed a bearish engulfing candlestick which confirmed the weakness signal issued by the previous week’s black spinning-top candlestick. With this bearish candle formation, the market is expected to further correct itself. On the daily chart, the FBM KLCI formed another bearish candlestick but with a long lower shadow, which indicates buying support from the bargain-hunters. Having closed below the 1500 psychological level will trigger further selling activities which will send the key index further southward. Nonetheless, the underlying longer term uptrend is still strong, and the key index may get good support at the 1480 to 1465 level provided by the 50 and 60-day moving average (MA), and the critical support will be at 1450.

Weekly MACD had started to turn downward, indicating a loss in the upward momentum, nevertheless, it is still above its weekly signal-line, and hence, it could just well be a short term correction. Daily MACD, on the other hand, had just made a dead-cross over its daily signal-line, and hence, the short term correction is expected to continue.

Weekly RSI (14) has hooked downward to 75.5 from an extremely overbought reading of 80.7 the previous week. Daily RSI (14) is at 52.1, had plunged further downward into the neutral zone from a reading of 63.1 on last Thursday, indicating bearish momentum is gaining strength.

Weekly Stochastic at 93.5 has just crossed below its weekly slow stochastic line, indicating the beginning of a medium term correction. Daily Stochastic, however, has plunged downward to 58.1, indicating the short term down cycle is picking up in momentum.

On the trend side, the FBM KLCI has closed below all its short term 5, 10 and 20-day MA, indicating the short term trend has begun to turn downward. The medium term uptrend, as indicated by the 30, 50 and 60-day MA is still intact, and is expected to provide good support to the key index when it corrects itself. And the long term uptrend is basically un-spoilt.

For the coming week, the benchmark FBM KLCI is expected to further correct itself with support zone expected at 1488 to 1465, while the immediate resistance zone is at 1500 to 1512. The Dow fell -90.52 points or -0.80% lower to close at 11,192.58 last Friday. This week, the FBM KLCI may trade within a range of 1450 to 1528, and for today it is likely to trade within a range of 1463 to 1524.

This week's expected range: 1450 – 1528
Today’s expected range: 1463 – 1524

Resistance: 1512, 1516, 1524
Support: 1463, 1475, 1488

FBM KLCI - closed 1% lower but a healthy correction

Stocks on Bursa Malaysia ended broadly lower yesterday with the benchmark index down by almost one per cent as investors locked in profits with losses led mainly by finance stocks. The FBM KLCI declined by 14.31 points or 0.937 % to close at the lowest level of the day at 1513.70, after opening 1.39 points lower at 1526.62. Decliners led advancers by 447 to 381 while 287 counters were unchanged. Total turnover dropped to 1.576 billion shares worth RM2.279 billion from Wednesday’s 1.741 billion shares worth RM2.274 billion.

The FBM KLCI opened 1.39 points lower at 1526.62 and traded lower throughout the day with intermittent weak rebound. The key index ended the day at its lowest point at 1513.70 on heavy selling pressure. Chart-wise, the FBM KLCI formed a bearish Marubozu candlestick which indicates sellers were in total control of the day. In fact, the appearance of this candlestick pattern is a confirmation of the top reversal signal issued by the spinning-top candlestick which formed on the day before. The key index is expected to correct downward further, and is viewed as a healthy correction to the one month long bulls run which had not have a proper correction.

MACD has turned downward, reflecting the current correction of the key index, nonetheless, it is still above its signal line and its underlying momentum is still positive. RSI (14) dropped rapidly from the overbought zone at 79.3 to 63.2 in the neutral zone. Stochastic at 83.5 has crossed below its slow stochastic, but is still above its 80 mark, hence, is considered a pullback; the up cycle would turn into down cycle when the stochastic crosses below the 80 mark. However, could this be the beginning of a major correction? The market will unfold itself.

With the FBM KLCI closing below the short term 5-day moving average (MA) yesterday, the short term trend is likely to turn southward. Nevertheless, the underlying medium to longer term uptrend still remained intact at the moment. The key index is expected to correct downward to the 1494 support level, provided by the 30-day MA. Immediate support zone is at 1512 to 1494 with 1500 being the key support level, while the overhead resistance zone is at 1527 to 1532.

Overnight, the Dow fell -73.94 points or -0.65% lower to close at 11,283.10. Today, the FBM KLCI is likely to trade within a range of 1495 to 1532.

This week's expected range: 1492 – 1540
Today’s expected range: 1495 – 1532

Resistance: 1523, 1527, 1532
Support: 1495, 1504, 1509

FBM KLCI - closing at another fresh record high despite profit-taking

Stocks on Bursa Malaysia closed mixed yesterday with the market's barometer ended higher in the eleventh hour-buying in key heavyweights, in otherwise an easier market amid profit-taking after the recent sharp gains. The benchmark FBM KLCI gained 1.48 points or 0.097% to post a second consecutive historic high of 1528.01 but it was still off its intra-day high of 1531.99. Advancers almost matched decliners by 441 to 420 while 268 counters were unchanged. Total turnover soared to 1.741 billion shares worth RM2.274 billion from Tuesday’s 1.643 billion shares worth RM2.136 billion.

The FBM KLCI opened 0.45 of a point higher at 1526.98 and surged to the intra-day high of 1531.99 within the first ten minutes of the morning session, heavy profit-taking activities immediately surfaced and persisted throughout the day which sent the key index to its intra-day low of 1523.92, losing 2.61 points at its worst, before a last minute buying support of key heavyweights which lifted the key index off-low to close at 1528.01, charting another historical high for the FBM KLCI.

Chart-wise, the FBM KLCI formed a spinning-top candlestick which indicates indecision of the market to move higher at this juncture, as indicated by the heavy intra-day selling pressure. However, the bull still has an upper hand, as the key index continue to close higher. With the appearance of the spinning-top candlestick at this high level, the market may take a breather here to consolidate its gains.
MACD continued to move higher, indicating a continuation in the upward momentum. RSI (14) at 79.3 continued to move higher, but is tapering off; nonetheless, the key index is still very bullish although overbought. Stochastic at 94.9 indicates very strong market strength, but has hooked downward; nevertheless, it is still above its slow stochastic line.

The underlying trend of the FBM KLCI remained bullish as it continued to stay above all its moving averages, and readings from the indicators are also indicating a very bullish state of the key index. The upward momentum is expected to remain strong for the short term despite the first weakness sign from the candlestick. Immediate overhead resistance is at 1532 while the downside support zone is at 1516 to 1500.

The overall market is expected to remain buoyant with rotational play on lower liners remained the main theme of the market. Overnight, the Dow rose +10.29 points or +0.09% higher to close at 11,357.04. Today, the FBM KLCI is likely to trade within a range of 1515 to 1540.

This week's expected range: 1492 – 1540
Today’s expected range: 1515 – 1540

Resistance: 1532, 1536, 1540
Support: 1516, 1520, 1524

Stocks to watch: MALTON, MUHIBAH, TASCO, MRCB, BJASSET, VS

FBM KLCI - a fresh record high of 1526

Stocks on Bursa Malaysia ended mixed yesterday with persistent buying for heavyweights which pushed the FBM KLCI to a new all-time high level, despite some profit-taking in the local bourse as well as key regional markets. The FBM KLCI which has been on an uptrend since last week ended 6.68 points higher at 1526.53, although it had seen an intra-day all time high of 1526.67 earlier. The historical intraday high record was 1524.69 seen on Jan 14, 2008. Gainers led losers by 447 to 412 while 270 counters were unchanged. Total turnover increased to 1.643 billion shares worth RM2.136 billion from Monday’s 1.52 billion shares worth RM2.252 billion.

The FBM KLCI opened 1.87 points higher at 1521.71 and surged to the morning session high of 1524.03 within the first half-an-hour, profit-taking immediately surfaced which sent the key index to its intra-day low of 1520.03 before lunch break. The afternoon session saw an increased in buying of heavyweights which pushed the key index to its intra-day high of 1526.67 before ending the day off high to close at a new record close of 1526.53.

Chart-wise, the FBM KLCI formed a bullish white candlestick which indicates buyers were dominant throughout the day. With the breaking of the all-time-high level, the FBM KLCI is now in an uncharted territory, and is expected to continue its upward momentum to chart new high. However, a pull-back is expected before the benchmark index heads for its next target level of 1550.

MACD continued to climb higher after making a golden-cross yesterday, indicating the picking up of the positive upward momentum. RSI (14) is at 78.8 and continued to move higher, indicates a very bullish state of the key index, albeit is short term overbought. Stochastic is at 96.4 and continued to climb higher, indicates very strong market strength. Readings from the indicators signalled a very bullish state of the FBM KLCI, and it is expected to continue its bullish up move in the near term.

The underlying uptrend of the FBM KLCI remained very strong with the key index staying above all the short, medium and long term moving averages. After breaching the record high level of 1524-point successfully, the FBM KLCI is expected to test the next target level of 1550 in the near term. Immediate strong resistance is expected at the 1530 level, while the immediate downside support zone is at 1500 to 1516.

Overnight, the Dow fell -60.09 points or -0.53% lower to close at 11,346.75. Today, the FBM KLCI is likely to trade within a range of 1515 to 1533.

This week's expected range: 1492 – 1527
Today’s expected range: 1515 – 1533

Resistance: 1529, 1531, 1533
Support: 1515, 1518, 1522

Stocks to watch: OSK, TA, PMCAP

FBM KLCI - New record high!

Stocks on Bursa Malaysia ended firmer yesterday amid buoyant sentiment for plantation stocks amid a rally in crude palm oil price but profit taking capped further gains. The FBM KLCI gained 8.1 points or 0.54% to close at 1519.84 after opening 5.27 points higher at 1517.01, it had touched an intra-day high of 1522.77, up by 11.03 points. Advancers outnumbered decliners by 592 to 289 while 253 counters were unchanged. Turnover increased to 1.520 billion shares worth RM2.252 billion from last Thursday’s 1.278 billion shares worth RM1.61 billion.

The FBM KLCI opened with an up gap of 5.27 points at 1517.01 and surged to the intra-day high of 1522.77 in the morning. Profit-taking activities set in and pushed the key index to the intra-day low of 1517.01 before last minute buying of selected key heavyweights lift the benchmark index to close at 1519.84, a new record close for the FBM KLCI. Chart-wise, the FBM KLCI formed a possible shooting-star candlestick which indicates heavy selling pressure encountered by the key index. With the bullish sentiments remained intact, the key index is expected to test the record high of 1524.69 anytime this week.

MACD moved higher and made a golden-cross, which is a strong buy signal. The golden-cross also indicates a resumption of the upward momentum. RSI (14) climb higher into the overbought zone, a reading of 76.3 indicates the key index is very bullish. Stochastic is at 93 and has hooked up, indicates very strong underlying market strength. Readings from the indicators signalled a very bullish state of the FBM KLCI, and it is expected to continue its bullish up move in the near term.

The underlying uptrend of the FBM KLCI remained very strong. Immediate strong resistance is expected at the 1524 level, while the immediate downside support zone is at 1500 to 1516. If the key index is able to breach the 1524-point level successfully, it is expected to test the next target level of 1550.

Overnight, the Dow fell -37.24 points or -0.33% lower to close at 11,406.84. Today, the FBM KLCI is likely to trade within a range of 1511 to 1529.

This week's expected range: 1492 – 1527
Today’s expected range: 1511 – 1529

Resistance: 1523, 1526, 1529
Support: 1511, 1514, 1517

Stocks to watch: CEPAT, DAYA, GHLSYS, GUNUNG, IJMPLNT, MASTEEL, TDM

FBM KLCI - inching closer to all time high level

Stocks on Bursa Malaysia ended last week broadly higher. Bursa Malaysia was closed for Deepavali celebration on Friday. The market barometer, FBM KLCI ended last week at 1511.74, or 6.08 points higher from 1505.66 the previous week. It is getting closer to its all time high close of 1516, recorded on Jan 11, 2008. The total weekly turnover decreased to 5.075 billion shares valued at RM6.168 billion from 6.275 billion shares valued at RM8.958 billion the previous week.
The FBM KLCI ended firmer on last Monday with a gain of 4 points to close at 1509.66, led by oil & gas stocks after the strong listing the previous Friday of Petronas subsidiary MHB, and in line with regional markets on the back of China's strong manufacturing growth. The market ended lower on Tuesday on profit-taking amid regional weakness after Australia unexpectedly raised interest rates, with the FBM KLCI down 3.09 points to close at 1506.57. On Wednesday, The FBM KLCI inched up by 1.03 points to close at 1507.6 after trading in a tight range, with most investors switching trading positions to fast moving lower liners and plantation stocks. Stocks extended gains on last Thursday, on Deepavali eve, after news of UEM Land's merger plan with Sunrise, which boosted buying interest in lower liner property stocks.

On the weekly chart, the FBM KLCI formed a spinning-top candlestick which indicates a balanced in the bull’s and bear’s fight with the bull having a slight edge as the key index closed above its weekly opening price, this candle formation also indicates indecision in the market to move forward. Nevertheless, this is the sixth straight week of gain in the benchmark index. On the daily chart, The FBM KLCI too formed a Doji candlestick after opening with an up gap of 4.46 points higher last Thursday; the formation of a Doji indicates the benchmark index was indecisive to move further ahead of a long weekend. Nevertheless, it still made a gain of 4.14 points on a day-on-day basis.

Weekly MACD continued to move higher, however, its weekly histogram is getting shorter, indicating a slow down in the weekly or medium term upward momentum. Daily MACD was turning flat but is still below its signal line, and its daily histogram has turned shorter upward, indicating a state of consolidation. Just a slight gain in the key index will lead to a golden-cross.

Weekly RSI (14) continued to move higher, and is at 80.7, a level which is strongly overbought, and a correction is imminent. Daily RSI (14) at 72.7 continued to climb higher and is still in a bullish state.

Weekly Stochastic is at 97.1 and continued to move higher, indicating a very strong medium term underlying strength of the FBM KLCI. Daily Stochastic at 90.6 has, however, turned flat and has stick to its slow stochastic, reflecting the consolidation.

Technical signals on the weekly chart are indicating a still very strong underlying strength, with the appearance of a spinning-top candlestick and weekly RSI moving into extremely overbought zone, a correction is imminent. Signals from the daily chart are indicating a strong underlying strength with a slow down in the upward momentum, hence, the key index might continue to move sideways with an upward bias.

Having said so, the bullish trend indicators should offset the overbought situation on momentum oscillators for the FBM KLCI which could persist for a while, especially given the firm external market tone as global stocks and commodities rally on optimism the second round of quantitative easing by the US further weakens the dollar and boost growth.
The Dow rose a marginal +9.24 points or +0.08% higher to close at 11,444.08 last Friday. This week, the FBM KLCI may trade within a range of 1492 to 1527, and for today it is likely to trade within a range of 1504 to 1518.

This week's expected range: 1492 – 1527
Today’s expected range: 1504 – 1518

Resistance: 1514, 1516, 1518
Support: 1504, 1506, 1509

FBM KLCI - range-bound consolidation

Stocks on Bursa Malaysia remained in positive territory at the close yesterday, with the benchmark index up 0.07% on persistent buying interest from local institutions in selected lower-liners, plantation and consumer counters. Investors continued to snap up plantation stocks as they were bullish about the earnings of plantation companies following the higher crude palm oil prices. The FBM KLCI rose 1.03 points to close at 1507.60 after opening 0.82 point higher at 1507.39. Gainers led losers by 503 to 280 while 307 counters were unchanged. Turnover increased to 1.325 billion shares worth RM1.436 billion from Tuesday’s 1.200 billion shares worth RM1.609 billion.

The FBM KLCI opened 0.82 of a point higher at 1507.39 and surged to the intra-day high of 1509.65 within the first fifteen minute after opening. Profit-taking activities immediate took over and sent the benchmark index to its intra-day low of 1596.60. The key index traded in the positive territory but in a narrow range throughout the day, which was really a range-bound trading day. Chart-wise, the FBM KLCI formed a Doji candlestick in Harami position which indicates consolidation and indecision of the market in its direction. Hence, the market is expected to continue its consolidation until some clearer signals surface to either push it higher or lower.

MACD continued to slide lower albeit in a slow pace, indicates the continued loss of market momentum, nevertheless, it is still above its signal line which indicates a bull market consolidation. RSI (14) at 70.6 has hooked up marginally, reflecting the marginal gain in the key index. Nonetheless, the RSI reading shows that the key index is still in the bullish zone. Stochastic at 90.5 has turned downward, but is still above its slow stochastic line, reflecting the consolidation but the underlying short term market strength remained strong. Mixed signals from the indicators indicate that the FBM KLCI might continue its range-bound consolidation.

The underlying trend remained up as the key index continues to stay above all its moving averages. Immediate overhead resistance zone remained at 1511 to 1524 while its support zone is at 1500 to 1490. Overnight, the Dow rose +26.41 points or +0.24% higher to close at 11,215.13. Today, the FBM KLCI is likely to trade within a range of 1503 to 1513.

This week's expected range: 1481 – 1524
Today’s expected range: 1503 – 1513

Resistance: 1509, 1511, 1513
Support: 1503, 1504, 1506

FBM KLCI - a healthy profit-taking correction

Stocks on Bursa Malaysia ended lower yesterday, with the key index falling 0.20%, dragged down by losses in heavyweight counters. The benchmark FBM KLCI which has been hovering above the 1,500 psychological level, slipped 3.09 points to close at 1506.57 after opening 0.15 point lower at 1509.51. Decliners outnumbered advancers by 463 to 279 while 320 counters were unchanged. Turnover dropped to 1.200 billion shares worth RM1.609 billion from Monday’s 1.271 billion shares worth RM1.512 billion.

The FBM KLCI opened 0.15 point lower at 1509.51 and continued to slip lower throughout the day. Last minute bargain-hunting of selected key heavyweights helped lift the key index off its intra-day low of 1504.72 to close the day at 1506.57. Chart-wise the key index formed a bearish black candlestick which covered the gap formed on Monday. The price action of the FBM KLCI yesterday also confirmed the reversal signal issued by the spinning-top candlestick formed on Monday. The key index, however, still manage to close above the 5 and 10-day moving average lines.

MACD has hooked downward and continue to remain below its signal line, indicating a resumed of the downward momentum. RSI (14) has retraced from the reading of 73.8 the day before to 70, reflecting the current correction, nevertheless is still in the very bullish zone. Stochastic at 93.8 continued to climb higher but is tapering off. Mixed signals from the indicators indicate that the FBM KLCI might goes into a short term consolidation.

The overall uptrend remained intact as the FBM KLCI continued to stay above all its short, medium and long term moving averages. Immediate overhead resistance zone is at 1511 to 1524 while the downside support zone is at 1500 to 1490.

Overnight, the Dow rose +64.10 points or +0.58% higher to close at 11,188.72. Today, the FBM KLCI is likely to trade within a range of 1499 to 1515.

This week's expected range: 1481 – 1524
Today’s expected range: 1499 – 1515

Resistance: 1509, 1512, 1515
Support: 1499, 1502, 1504

FBM KLCI - stood firmly above 1,500

Stocks on Bursa Malaysia ended mixed in range-bound trading yesterday but the key index increased 0.27%, supported by finance and plantation stocks. The FBM KLCI, which hovered at the 1,500 mark, advanced 4.00 points to close at 1509.66 after opening 5.03 points higher at 1510.69. Decliners outnumbered advancers by 440 to 343 while 317 counters were unchanged. Turnover dropped to 1.271 billion shares worth RM1.512 billion from 1.462 billion shares worth RM2.342 billion last Friday.

The FBM KLCI opened with an up gap of 5.03 points at 1510.69, and traded to the intra-day high of 1511.24 within the first five minutes. Heavy profit-taking activities immediately appeared and sent the key index to its intra-day low of 1506.31. The key index hover in a tight range for most part of the day, and a last minute buying of selected key heavyweights pushed the key index to close higher at 1509.66. Chart-wise, the FBM KLCI formed a black spinning-top candlestick which indicates indecision of the key index to move further, and was faced with heavy selling activities. The key index has now stood firm above the 1,500 psychological resistance level, and will try to challenge its next target levels at 1516 and 1524 soon.

MACD has turned upward, albeit still below its signal line, indicates a pick up in the upward momentum. In fact, its histogram has shown the subtle increase in upward momentum since four days ago. RSI (14) continued to climb higher into the overbought zone, and is at 73.8, indicates the key index is getting more bullish. Stochastic at 92.9 has moved higher into the short term overbought zone, and is expected to continue climbing higher. Signals from the indicators indicate that the FBM KLCI has regained its bullishness after the recent consolidation.

The underlying uptrend remained very strong and intact, as shown by the moving averages that are all pointing northeast. Immediate overhead resistance zone is now at 1511 to 1524, while the immediate downside support zone lies at 1500 to 1490. The overall market is expected to remain buoyant with lower liners continued to be in rotational play.

Overnight, the Dow rose a marginal +6.13 points or +0.06% higher to close at 11,124.62. Today, the FBM KLCI is likely to trade within a range of 1501 to 1516.

This week's expected range: 1481 – 1524
Today’s expected range: 1501 – 1516

Resistance: 1512, 1514, 1516
Support: 1501, 1504, 1506

Stocks to watch: CHUAN, CIHLDG, DIALOG, DNP, K1, SUNRISE, TOMEI, TSH

FBM KLCI - closing above 1,500 at 33-month high

Stocks on Bursa Malaysia ended last week mostly higher, with gains in banking stocks boosting the major indices. The listing of Malaysia Marine and Heavy Engineering Bhd, the rig-building arm of MISC Bhd last Friday, also gave the market a boost. The benchmark FBM KLCI ended last week 15.02 points or 1.01% higher, week-on-week, to 1505.66 from 1490.64 the previous Friday, charting a 33-month high compared to its all-time historical high of 1,524.69 on January 14 2008. Weekly turnover declined to 6.275 billion shares valued at RM8.958 billion from 6.971 billion shares valued at RM8.674 billion the previous week.

The FBM KLCI opened 2.89 points higher last Monday but ended 0.80 of a point to 1491.44 after trading in a narrow range. The key index rebounded on Tuesday to close 5.50 points at 1496.94. On Wednesday, the key index staged a follow through rebound to close 2.17 points higher at 1499.11. Coming to Thursday, the overall market sentiment on Bursa Malaysia remained firm amid range-bound trading activities, and the benchmark index rose a marginal 0.33 point to 1499.44. On Friday, the FBM KLCI continued its rebound to close the week at the intra-week high of 1505.66, charting a 33-month new high.

On the weekly chart, the benchmark FBM KLCI formed a bullish white candlestick without any upper shadow, which indicates the bulls were very much in control. This candlestick also confirmed the reversal signal issued by the Doji formed the previous week. With the bullishness shown, the key index is likely to continue its up move to test the historical highest close level of 1516.22 registered on Jan 11, 2008.

On the daily chart, the FBM KLCI also formed a similar bullish white candlestick without upper shadow on last Friday, signifying the bull is in full control and is likely to continue its surge upward. Immediate overhead resistance lies at 1516, 1521 and 1524, while the immediate support zone is at 1500 to 1490.

Weekly MACD continued to move higher, indicating a strong continuation of the upward momentum. However, the weekly histogram is turning shorter, indicating a slower upward pace. Daily MACD has turned upward but still below its signal-line, indicating a gradual pick up in the upward momentum.

Weekly RSI (14) continued to move higher, and is at 80.05, indicating the medium to long term market strength of the FBM KLCI is very bullish. However, do beware of a possible strong pullback when the key index moves into this very bullish or overbought zone. Daily RSI (14) at 72 is currently entering the short term overbought zone, indicating the key index is turning very bullish for the short term, and may continue its upward momentum to move higher.

Weekly Stochastic is at 94.8, and is above its slow Stochastic, indicates a very strong underlying medium to longer term market strength. Daily Stochastic at 87.9 continued its up move into the overbought zone, indicating the FBM KLCI has move out of its short term consolidation to swing into an up cycle.

The underlying uptrend of the FBM KLCI remained very strong as all its moving averages are pointing northeast. For this coming week, the FBM KLCI is expected to continue moving higher to challenge the historical all-time high levels, while the overall market will remain buoyant with active rotational play on second and third liners.

The Dow rose a marginal +4.54 points or +0.04% higher to close at 11,118.49 last Friday. This week, the FBM KLCI may trade within a range of 1481 to 1524, and for today it is likely to trade within a range of 1492 to 1514.

This week's expected range: 1481 – 1524
Today’s expected range: 1492 – 1514

Resistance: 1508, 1511, 1514
Support: 1492, 1495, 1500