FBM KLCI - higher on continued buying support

Stocks on Bursa Malaysia closed broadly higher yesterday as investors continued to pick up selected heavyweight stocks, signaling the possibility of a pre-new year rally. The FBM KLCI closed 6.9 points or 0.45% higher at 1524.34. Its all-time high was 1528.01, recorded on Nov 10. Winners thumped losers by 468 to 294 while 314 counters were unchanged. Total volume rose to 908 million shares valued at RM1.394 billion from 822 million shares worth RM1.22 billion on Tuesday.

The FBM KLCI opened 3.01 points higher at 1520.45 and surged to the intra-day high of 1526.93 within the first 30 minutes of the morning session. Active profit-taking activities immediately pressed the key index lower and the key index hovers between 1520.19 and 1526.93 for the rest of the day. Chart-wise, the FBM KLCI formed a bullish white candlestick which indicates strong continuous buying strength which helped to push the benchmark index higher. The key index is now just 3.67 points below the historical highest close of 1528.01, and, there is a high possibility that the benchmark index may close at the highest level for the year, as today will be the last trading day for the year. Meanwhile, the Prime Minister had just declared tomorrow, Friday as a public holiday to celebrate Malaysia’s first ever victory in the Asean Football Federation (AFF) Suzuki Cup 2010 championship last night in Jakarta.

MACD continued to move higher, as shown by the longer histogram, indicating a pick up in the upward momentum. RSI (14) had moved higher to 62.5, back to the bullish zone. Stochastic surged up to 76.7, indicating the continuation of the upward strength and the up cycle. Readings from the indicators shown that the FBM KLCI has again turned bullish, and hence, there could be more upside to come.

With the FBM KLCI closing above the resistance level of 1523, the short term trend of the benchmark index has turned up, and is likely to continue moving higher, and the medium and long term uptrend remained intact. Immediate strong overhead resistance zone is now at 1528 to 1532, while the downside support zone is at 1509 to 1500.

Overnight, the Dow rose +9.84 points or +0.09% higher to close at 11,585.38. Today, the FBM KLCI is likely to trade within a range of 1513 to 1534.

This week's expected range: 1471 – 1544
Today’s expected range: 1513 – 1534

Resistance: 1528, 1531, 1534
Support: 1513, 1517, 1520

FBM KLCI - a strong rebound

Stocks on Bursa Malaysia closed firmer yesterday as investors bought into selected index-linked counters, mostly banking and plantation. The FBM KLCI which opened 0.74 of a point lower at 1510.98, moved between 1509.55 and 1525.99 before ending 5.72 points or 0.38% higher at 1517.44. Advancers led decliners by 390 to 370 while 294 counters were unchanged. Turnover improved to 822 million shares worth RM1.22 billion from Monday’s 773 million shares valued at RM868 million.

The FBM KLCI opened 0.74 point lower at 1510.98 and touched the intra-day low of 1509.55 within the first five minutes, it rebounded strongly and rallied to the intra-day high of 1525.99, profit-taking activities which emerged after that pressed the key index lower for the rest of the day to settle at 1517.44. Chart-wise, the FBM KLCI formed a white candlestick with long upper shadow, which indicates the bull was initially very strong in pushing the index up, but the bear which emerged later pushed it lower. From the price action, it shows that the resistance zone at 1519 to 1532 remained a tough barrier to the up move.

MACD has turned upward, indicating a pick up in the upward momentum. RSI (14) has hooked up and is at 58.8, moving higher into the mildly bullish zone. Stochastic at 66.2 too has hooked upward and is now above its slow stochastic line. Readings from the indicators indicate an initial pickup in the FBM KLCI’s momentum, and is likely to continue its upward trend.

With the strong up move yesterday, the short term trend of the FBM KLCI has turned upward from sideways. However, the 1519 to 1532 remained a strong barrier zone to the up move. The medium to long term uptrend remained intact. Immediate downside support zone is at 1509 to 1500.

Overnight, the Dow rose +20.51 points or +0.18% higher to close at 11,575.54. Today, the FBM KLCI is likely to trade within a range of 1492 to 1542.

This week's expected range: 1471 – 1544
Today’s expected range: 1492 – 1542

Resistance: 1526, 1534, 1542
Support: 1492, 1501, 1509

FBM KLCI - almost unchanged

Stocks on Bursa Malaysia closed mixed yesterday with modest gains in selected heavyweights amid continuous profit taking in the general market. The FBM KLCI added 0.14 of a point or 0.01% to 1,511.72. Decliners led advancers by 414 to 305, while 273 counters were unchanged. Total volume declined to 773 million shares valued at RM868 million from Friday's 835 million shares worth RM904 million.

The FBM KLCI opened 0.32 of a point higher at 1,511.90 and surged to the intra-day high of 1513.23 within the first five minutes, and profit-taking activities pushed the key index to the intra-day low of 1509.64 before bargain hunting activities lift it off low to close almost unchanged. Chart-wise, the FBM KLCI formed a Doji candlestick, which indicates indecision of the market direction. The key index is currently resting on the 5-day moving average (MA) which is at 1511.60, and the 10-day MA at 1507 will provide immediate support if the key index slides below 1510.

MACD is almost flat, but its histogram starts to turn shorter, indicating a lack of momentum. RSI (14) at 55.4 is flat, and remained in the neutral zone. Stochastic at 65.2 has hooked downward, indicating a possible change in the market strength. Readings from the indicators indicate a lack of momentum of the FBM KLCI, and hence, the key index will continue to drift sideways.

The short and medium term trend of the FBM KLCI is currently sideways, while the longer term trend remained up. Immediate overhead resistance zone remained at 1518 to 1532 while the downside support zone is at 1507 to 1500. With the shrinking volume, the market is likely to remain sideways.

Overnight, the Dow fell -18.46 points or -0.16% lower to close at 11,555.03. Today, the FBM KLCI is likely to trade within a range of 1505 to 1517.

This week's expected range: 1471 – 1544
Today’s expected range: 1505 – 1517

Resistance: 1513, 1515, 1517
Support: 1505, 1507, 1509

Stocks to watch: BJCORP, BJCORP-LC, NOTION, ENG

FBM KLCI - sideways with an upward bias

Stocks on Bursa Malaysia closed easier last Friday on continued profit-taking amid holiday mood. However, losses were limited as mild window-dressing activities in some blue chips managed to keep the benchmark FBM KLCI above the 1,500 point level. The FBM KLCI slipped 2.9 points or 0.19% to 1,511.58, week-on-week, it rose 11.7 points from the previous week’s closing of 1,499.88. Turnover on Friday dropped to 835 million shares worth RM904.81 million from 1.25 billion shares valued at RM1.65 billion on Thursday. Weekly volume declined to 5.747 billion shares valued at RM7.676 billion from previous week’s 5.865 billion shares valued at RM8.725 billion.

The FBM KLCI opened last Monday 0.42 points lower at 1499.46 and touched the intra-week low of 1493.22 before rebounding to close off low at 1495.88 as sentiments across the region was affected by the heightening tensions in the Korean peninsula following live-fire drills in the South and worries about monetary tightening in China. The key index rebounded by 9.3 points to 1505.18 on Tuesday pushed by gains mostly in PLUS Expressways following the fourth new bid involving a RM26 billion takeover offers for the toll operator. On Wednesday, the FBM KLCI made another gain of 9.87 points to close at 1515.05 boosted by a steadier Wall Street overnight and Asian peer. The FBM KLCI went into a consolidation on Thursday and edged down a marginal 0.57 point to 1514.48, and the correction continued into Friday amid holiday mood.

On the weekly chart, the FBM KLCI rebounded to form a bullish white candlestick. It was however, still trapped in a sideways consolidation. It will need to break above the 1532 historical high level for the uptrend to continue, which is likely to happen next year. On the daily chart, the FBM KLCI formed a small black candlestick and rebounded off its immediate support at 1510. The key index is likely to continue its consolidation this week.

Weekly MACD continued to slide lower, as shown by the longer histogram in southward direction, indicating a continued loss in the weekly momentum. The daily MACD was just marginally higher; nonetheless, it is still above its signal line. Weekly RSI (14) has hooked up and is at 71.8, indicating the weekly market strength is still generally on the bullish side. Daily RSI (14) has hooked downward to 55.3 and back to its neutral zone. Weekly Stochastic is at 72.7, and has just turned upward, indicating the downward strength is taking a pause. However, it is still below its weekly slow stochastic line. Daily Stochastic at 69.1 has continued to move higher, but is tapering off, indicating a lack of follow through momentum. Mixed signals from the weekly and daily indicators readings indicate that the FBM KLCI is likely to continue its sideways consolidation mode.

As the FBM KLCI continued to close above all its moving averages (MA), and the 5-day MA has just crossed above the 10-day MA, the immediate short term trend is up. The medium term trend as represented by the 50 and 60-day MAs is still up, but gradually turning sideways. The long term uptrend, nevertheless, remained intact. Immediate overhead resistance zone lies at 1518 to 1532, while the immediate downside support zone is at 1506 to 1493, with 1500 being the key psychological support.

Wall Street was closed for Christmas Holiday last Friday. This week, the FBM KLCI may trade within a range of 1471 to 1544, and for today it is likely to trade within a range of 1503 to 1522.

This week's expected range: 1471 – 1544
Today’s expected range: 1503 – 1522

Resistance: 1515, 1518, 1522
Support: 1503, 1507, 1509

Stocks to watch: PETRA, MASTEEL

FBM KLCI - marginally lower

Stocks on Bursa Malaysia closed lower yesterday on profit-taking activities as investors were reluctant to keep heavy positions ahead of Christmas holiday. Gains in some selected heavyweights managed to keep the FBM KLCI above 1,500 level. The benchmark FBM KLCI edged down by 0.57 of a point or 0.04% to 1514.48, after opening 3.64 points higher at 1518.69. Losers led gainers by 383 to 356, while 305 counters were unchanged. Total volume declined to 1.251 billion shares valued at RM1.646 billion from 1.253 billion shares worth RM1.664 billion on Wednesday.

The FBM KLCI opened 3.64 points higher at 1518.69 and touched the intra-day high of 1518.80 briefly after opening, profit-taking activities immediately set in and sent the key index to the intra-day low of 1511.20. The key index was in a sideways range before late buying in selected heavyweights lifted it to close almost unchanged at 1514.48. Chart-wise, the FBM KLCI formed a dark-cloud cover candlestick pattern, which indicates heavy profit-taking activities by the bears when the key index came near the resistance zone. With this candle pattern formation, the key index is expected to continue its consolidation today.

MACD continued to move higher after making a golden-cross, indicating the gradual pick up in momentum. RSI (14) at 57.4 has hooked down slightly reflecting the marginal loss in the key index. Stochastic at 67.6 has continued to climb higher, indicating a continuation of the short term up cycle. Signals from the indicators indicates that the short term momentum of the FBM KLCI has turned positive but still lack of strength.

The FBM KLCI is now closing above all its moving averages (MA), which indicates the key index is back to the bullish mode. However, its immediate short term 5-day MA is still below the 10-day MA, hence, the short term trend is still sideways. The medium to long term trend, nonetheless, remained up. Immediate overhead resistance zone is at 1518 to 1523, while the immediate downside support zone is at 1510 to 1500.

The FBM KLCI is expected to remain in consolidation mood today, on the Christmas Eve, but the second and third liners are likely to be active in rotational play mode. Overnight, the Dow rose +14.00 points or +0.12% higher to close at 11,573.49. Today the FBM KLCI is likely to trade within a range of 1503 to 1526.

This week's expected range: 1469 – 1539
Today’s expected range: 1503 – 1526

Resistance: 1518, 1522, 1526
Support: 1503, 1507, 1510

FBM KLCI - continued moving higher

Stocks on Bursa Malaysia closed higher yesterday on mild buying interest in selected heavyweights as investors reacted positively towards several active changes in the corporate scene. The FBM KLCI rose 9.87 points or 0.66% higher to close at 1515.05, after opening 0.69 of a point higher at 1505.87. Gainers led losers by 394 to 374, while 284 counters were unchanged. Total volume declined to 1.253 billion shares worth RM1.664 billion from Tuesday’s 1.361 billion shares valued at RM1.87 billion.

The FBM KLCI opened 0.69 point higher at 1505.87 and moved higher to the morning session high of 1513.39. The key index pullback to consolidate before a last minute buying on selected key heavyweights sent it to close at the day’s high of 1515.05. Chart-wise, the FBM KLCI formed a bullish Marubozu candlestick which indicates the bull was in control for the day. With this bullish close, the FBM KLCI is expected to continue moving higher to challenge the next higher resistance level at 1523.

MACD continued to move higher and made a golden-cross over its signal line, which is a buy signal, and indicates the short term momentum is turning positive. RSI (14) is at 57.8 and continued to move higher into the mildly bullish zone. Stochastic has hooked upward and made a cross over its slow stochastic line, indicating the end of the short term down cycle and possibly the beginning of another up cycle. Signals from the indicators indicated that the short term consolidation of the FBM KLCI is possibly over, and a new uptrend is in the making.

The FBM KLCI is now closing above all its short, medium and long term moving averages (MA), which is a bullish sign. However, its immediate short term 5-day MA is still below the 10-day MA, which indicates the short term trend, is still sideways, until the 5-day MA crosses above the 10-day MA. The medium and long term uptrend remained intact. Immediate overhead resistance zone lies at 1523 to 1532, while the immediate downside support is at 1500 to 1493.

Overnight, the Dow rose +26.33 points or +0.23% higher to close at 11,559.49. Today the FBM KLCI is likely to trade within a range of 1498 to 1525.

This week's expected range: 1469 – 1539
Today’s expected range: 1498 – 1525

Resistance: 1518, 1522, 1525
Support: 1498, 1501, 1508

Stocks to watch: MUHIBAH, KNM, SEG, MASTEEL, BPURI, PMETAL, MAA

FBM KLCI - rebounded to close above 1500

Stocks on Bursa Malaysia ended yesterday on a firmer note, boosted by fresh buying interest from investors following positive corporate news including several takeover offers within the industry. The FBM KLCI rose 9.3 points or 0.62% to 1505.18 pushed by gains mostly in PLUS Expressways following the fourth new bid involving a RM26 billion takeover offers for the toll operator. Gainers outnumbered losers by 539 to 256, while 284 counters were unchanged. Total volume rose to 1.361 billion shares worth RM1.87 billion compared with Monday’s volume of 1.05 billion shares valued at RM1.6 billion.

The FBM KLCI opened 2.47 points higher at 1498.35 and continued moving higher for most part of the day. It touched the intra-day high of 1510.24 before profit-taking activities pressed it to close off-high at 1505.18. Chart-wise, the FBM KLCI formed a bullish white candlestick which marked a reversal of the near term downtrend of the key index. It, however, requires a follow-through up move and to break above the resistance at 1510 to confirm the reversal.

MACD has hooked up, as shown by the shorter histogram, indicating an initial reversal of the downward momentum. RSI (14) has reversed up and is at 52.5, back to the neutral zone. Stochastic has also hooked up, but still below its slow stochastic, it will require a cross above its slow stochastic to confirm the reversal of the down cycle. Signals from the indicators indicated the first sign of reversal of the key index; nonetheless, it still requires more data to confirm.

The short term trend of the FBM KLCI is still sideways at the moment until a confirmed breakout above the resistance at 1522. The medium and longer term uptrend remained intact. Immediate overhead resistance zone is at 1510 to 1522, while the immediate downside support zone is at 1500 to 1493. With the total volume picking up again, the market is expected to remain active with rotational play on second and third liners.

Overnight, the Dow rose +55.03 points or +0.48% higher to close at 11,533.16. Today the FBM KLCI is likely to trade within a range of 1486 to 1523.

This week's expected range: 1469 – 1539
Today’s expected range: 1486 – 1523

Resistance: 1511, 1517, 1523
Support: 1486, 1492, 1498

Stocks to watch: PETRA, MUDAJYA, LANDMRK, KUB

FBM KLCI - lower in line with regional trend

Stocks on Bursa Malaysia finished on easier note yesterday in line with the weak regional stock markets, which were hurt by the heightened tensions in the Korean peninsula and concerns over access to funds in China. The FBM KLCI slipped 4.0 points or 0.27% to close at 1495.88, after opening 0.42 point lower at 1499.46. Decliners outpaced advancers by 503 to 251 while 278 counters were unchanged. Total volume fell to 1.05 billion shares valued at RM1.59 billion from 1.14 billion shares valued at RM1.81 billion last Friday.

The FBM KLCI opened 0.42 points lower at 1499.46, and rebounded to the intra-day high of 1500.07 briefly, and moved lower throughout the day with intermittent rebound. It touched the intra-day low of 1493.22 before rebounding to close off low at 1495.88. Chart-wise, the FBM KLCI formed a small black hammer-like candlestick, which indicates the bears were trying to sell down but the bulls were picking up stocks at lower level, and managed to lift the key index off low. The FBM KLCI had managed to close above its immediate support at 1495 after breaking it on intra-day basis, and also rebounding off the 60-day moving average (MA) after hitting it. The key index is at a critical level at this moment, if it closes below the 60-day MA, one can expect it to slip down further to retest the support at 1488 and 1474.

MACD continued to slide lower with its histogram growing longer, this indicates the downward momentum is picking up in strength. RSI (14) slid lower to 46.7, is moving towards the weakly bearish zone. The continued lower value of RSI also indicates the bear is gradually gaining strength. Stochastic at 47.2 had continued to slide lower and moved below the 50 level, this indicates the down cycle is still in force, and the key index is expected to continue with its consolidation.

For the short term, the FBM KLCI is in a sideways trend. The medium term uptrend is at test now, as the key index is already below the 50-day MA but just holding right above the 60-day MA. If the key closes below the 60-day MA which is currently at 1493.71, it is likely that it will slide down further to re-test the support at 1474, which is a critical level to watch. The long term trend, nonetheless, remained up.

Overnight, the Dow fell -13.78 points or -0.12% lower to close at 11,478.13. Today the FBM KLCI is likely to trade within a range of 1485 to 1507.

This week's expected range: 1469 – 1539
Today’s expected range: 1485 – 1507

Resistance: 1500, 1503, 1507
Support: 1485, 1489, 1493

Stocks to watch: DRBHCOM, YTLLAND

FBM KLCI - sideways consolidation

Stocks on Bursa Malaysia went through a week of correction and consolidation last week, in line with regional trend. The FBM KLCI staged a mild rebound last Friday to close 2.36 points or 0.16% higher at 1499.88 after two days of sell off. Week-on-week, the benchmark index lost 7.4 points compared to the previous Friday’s close of 1507.28. Weekly volume rose to 5.865 billion shares, worth RM8.725 billion, from 4.968 billion shares, valued at RM8.94 billion the previous week.

The FBM KLCI opened 4.54 points higher at 1511.82 last Monday after strong gains on Wall Street the previous Friday improved investor sentiment, and close 2.51 points higher at 1509.79. On Tuesday, Stocks ended mixed in range-bound trading, but persistent buying interest in small-and medium-capitalized counters such as plantation, election-themed, oil and gas stocks helped sustained the local stock market, and the FBM KLCI rose 0.79 point to 1510.58. On Wednesday, stocks closed lower on selling pressure in line with losses in regional bourses. However, continued buying interest in heavyweights helped narrow overall losses, and the FBM KLCI fell 1.48 points to close at 1509.12. Stocks on Bursa Malaysia ended broadly lower on Thursday on extended sell-off amid weak trading across global markets, and the FBM KLCI fell 11.58 points to 1497.52. On Friday, the key index rebounded 2.36 points to close the week at 1499.88.

On the weekly chart, the FBM KLCI formed a bearish engulfing candlestick which indicates sellers were dominant throughout the week. The key index has been trading sideways between the high of 1532 and the low of 1474 over the last eight weeks, and is expected to continue doing so. The key index is closing right below the 5 and 10-week moving averages (MA) which are currently at 1501 and 1500, and they will likely exert selling pressure on the key index and press it lower.

On the daily chart, the FBM KLCI formed a small white candlestick which indicates weak rebound and consolidation. It temporary found support at 1495, and is currently closing below all the short term 5, 10, 20 and 30-day MAs, these MAs will continue to act as resistance to the up move and will continue to exert selling pressure on the key index. If the key index breaks the immediate support at 1495, it will move lower to test its next support at 1488 and 1474.

Weekly MACD continued to move lower after making a dead-cross two weeks ago, this indicates the continued loss in the weekly upward momentum, and is moving into medium term sideways consolidation. Daily MACD too has made a dead-cross and is moving lower, and indicates short term correction and consolidation.

Weekly RSI (14) continued to move lower and is currently at 69.6, which shows that the weekly market strength is reducing from the very bullish to the bullish state. Daily RSI (14) at 49.1 has hooked up slightly, and is neutral to weakly bearish.

Weekly and daily Stochastic continued to slide lower, indicating the continued loss in weekly and daily momentum, and the continuation of the down cycle. Weekly and daily signals from the indicators indicate the FBM KLCI is in a correction and consolidation state, and the continued loss in momentum will lead the key index to further consolidate.

The short term trend of the FBM KLCI has moved into sideways, and will be range-bound between 1474 and 1532 with a downward bias. Nonetheless, the medium to long term uptrend remained intact.

For the coming week, the market is likely to be quiet as most fund managers would have gone on leave, while some window-dressing activities on index-linked stocks may help to keep the key index afloat. However, rotational play on second and third liners will remain active. The Dow fell -7.34 points or -0.06% lower to close at 11,491.91 last Friday. This week, the FBM KLCI may trade within a range of 1469 to 1539, and for today it is likely to trade within a range of 1490 to 1506.

This week's expected range: 1469 – 1539
Today’s expected range: 1490 – 1506

Resistance: 1502, 1504, 1506
Support: 1490, 1493, 1496

Stocks to watch: OLYMPIA, SCIENTX, KENCANA, MUHIBAH

FBM KLCI - lower on selling pressure

Stocks on Bursa Malaysia ended broadly lower yesterday on extended sell-off amid weak trading across global markets. The benchmark FBM KLCI fell 11.58 points or 0.77% to 1497.52, after opening 2.0 points lower at 1507.10. Market breadth was negative with losers leading gainers by 473 to 256 while 296 counters were unchanged. A total of 1.275 billion shares valued at RM1.816 billion were traded against 1.119 billion shares worth RM1.764 billion on Wednesday.

The FBM KLCI opened with a down gap of 2 points at 1507.10, which is the intra-day high, and slid downward with intermittent rebound for most part of the day. It touched the intra-day low of 1495.39 before rebounding to close off-low at 1497.52. Chart-wise, the FBM KLCI formed a long black candlestick which indicates sellers were dominant throughout the day in pushing prices lower. The key index is likely to slide lower, but will receive good support at 1492 level provided by the 60-day moving average (MA), which has been providing good support to the uptrend.

MACD turned downward and made a dead-cross, which is a sell signal, indicates the momentum has turned weak, and the consolidation is likely to prolong. RSI (14) at 47.6 has turned mildly bearish. Stochastic at 64.8 has continued to slide lower, indicating a continuation of the down cycle. Readings from the indicators indicate that the FBM KLCI is turning weak to bearish for the short term, and may continue to consolidate.
The short term trend of the FBM KLCI has turned down or bearish, as it is now closing below the 30-day MA which provides a guide to the short term trend direction. The medium term trend as represented by the 60-day MA will be challenge soon; nonetheless, it is still up at the moment. The long term uptrend is still intact. The immediate downside support zone is at 1492 to 1474, while the resistance zone is at 1507 to 1523.

For the near term, the FBM KLCI is likely to continue its consolidation, while the overall market will be in rotational play. Overnight, the Dow rebounded +41.78 points or +0.36% higher to close at 11,499.25. Today, the FBM KLCI is likely to trade within a range of 1481 to 1519.

This week's expected range: 1470 – 1548
Today’s expected range: 1481 – 1519

Resistance: 1505, 1512, 1519
Support: 1481, 1488, 1492

FBM KLCI - lower on mild selling pressure

Stocks on Bursa Malaysia closed lower yesterday on selling pressure in line with losses in regional bourses. However, continued buying interest in heavyweights like CIMB, MAYBANK, RHBCAP and AMMB as well as in low-priced counters helped narrow overall losses. The FBM KLCI fell 1.48 points or 0.1% to close at 1509.12, after opening 0.89 of a point better at 1,511.47. Market breadth was negative with losers led gainers by 439 to 330 while 287 counters were unchanged. Turnover stood at 1.119 billion shares worth RM1.764 billion compared with Tuesday’s 1.173 billion shares valued at RM1.677 billion.

The FBM KLCI opened 0.89 point higher and surged to the intra-day high of 1514.24 within the first ten minutes. Profit-taking activities sent the key index lower throughout the day, with intermittent rebound, to the intra-day of 1504.75 before last minute buying of selected heavyweights lift the key index off low to close at 1509.12. Chart-wise, the FBM KLCI formed a black spinning-top candlestick with a longer lower shadow, which indicates indecision of market direction. The formation of three spinning-top candlesticks over the last three days indicates the market was in a sideways consolidation mode.

MACD was flat, but its histograms continued to turn shorter, indicating a continuous loss in momentum. RSI (14) dropped slightly to 54.9 from 55.9 a day earlier, is still in the neutral zone. Stochastic, however, hooked up slightly but still below its slow stochastic line. Readings from the indicators indicate the FBM KLCI lacks momentum at the moment, and is likely to consolidate further.

The FBM KLCI is now closing below its 5-day moving average (MA), but is above the 10 and 30-day MAs, indicating sideways for the short term. The longer term uptrend remained intact. Immediate overhead resistance zone is at 1515 to 1523 while the immediate support zone is at 1504 to 1500.

The FBM KLCI is likely to remain sideways, while the overall market is expected to remain active with rotational play in second and third liners. Overnight, the Dow fell -19.07 points or -0.17% lower to close at 11,457.47. Today, the FBM KLCI is likely to trade within a range of 1495 to 1524.

This week's expected range: 1470 – 1548
Today’s expected range: 1495 – 1524

Resistance: 1514, 1519, 1524
Support: 1495, 1499, 1504

Stocks to watch: OSK, KNM, YEELEE

FBM KLCI - marginally higher in range-bound trade

Stocks on Bursa Malaysia ended mixed in range-bound trading yesterday. Persistent buying interest in small-and medium-capitalized counters such as plantation, election-themed, oil and gas stocks helped sustained the local stock market. The benchmark FBM KLCI rose 0.79 point or 0.05% to 1510.58, after opening 0.98 point better at 1510.77. Market breadth was positive with gainers led losers by 390 to 347 while 309 counters were unchanged. Turnover rose marginally to 1.173 billion shares valued at RM1.677 billion from Monday’s 1.158 billion shares valued at RM1.662 billion.

The FBM KLCI opened 0.98 points higher at 1510.77 and surged to the intra-day high of 1512.87 within the first fifteen minutes, and thereafter, sink to the intra-day low of 1506.03 on profit-taking pressures. The key index rebounded off low on last minute buying of selected heavyweight to end marginally higher at 1510.58. Chart-wise, the FBM KLCI formed a Doji candlestick with long lower shadow, which indicates indecision of the market direction with buying support for index-linked counters at lower levels. The key index is likely to continue with its consolidation while waiting for stronger leads to push it higher.

MACD continued to move higher but at a slow pace, as shown by the shorter histograms, which indicates a lack of upward momentum. RSI (14) at 55.9 is almost flat, and continued to remain in the neutral zone. Stochastic at 71.9 has move below the 80 mark, indicating a continuation of the down cycle in market strength or consolidation. Readings from the indicators shows a lack of momentum in the FBM KLCI, and hence is likely to continue its consolidation.

The FBM KLCI is currently below the 5-day moving average (MA) which is at 1511.80, but is above all other moving averages which indicates short term sideways consolidation. The longer term uptrend remained intact. Immediate overhead resistance zone is at 1517 to 1523 while the downside support zone is at 1506 to 1500. With trading volume maintaining above 1 billion shares, the overall market is expected to remain active with rotational play on second and third liners in particular plantation stocks, oil and gas and election-themed counters.

Overnight, the Dow rose +47.98 points or +0.42% higher to close at 11,476.54. Today, the FBM KLCI is likely to trade within a range of 1500 to 1520.

This week's expected range: 1470 – 1548
Today’s expected range: 1500 – 1520

Resistance: 1514, 1517, 1520
Support: 1500, 1503, 1506

Stocks to watch: KNM, INCKEN, LANDMRK, TWSPLNT, TDM, HSPLANT

FBM KLCI - higher while in consolidation

Stocks on Bursa Malaysia ended broadly higher yesterday after strong gains on Wall Street last Friday improved investor sentiment. The FBM KLCI rose 2.51 points or 0.17% to 1509.79, after opening 4.54 points higher at 1511.82. Market breadth was positive with gainers leading losers by 436 to 304 while 300 counters were unchanged. A total of 1.158 billion shares worth RM1.662 billion were traded against last Friday's 1.531 billion shares valued at RM2.725 billion.

The FBM KLCI opened 4.54 points higher at 1511.82 and surged to the intra-day high of 1517.15 within the first fifteen minutes. Heavy profit-taking emerged and sent the key index lower throughout the day but remained in the positive territory. It touched the intra-day low of 1506.88 before rebounding to close off low at 1509.79. Chart-wise, the FBM KLCI formed a bearish Harami candlestick pattern, which indicates range-bound trading and indecision of market direction. The key index will need to break upward above 1517 for it to move higher; if it breaks below 1506, it will continue with its consolidation, however, strong support is expected at the 1500 psychological level.

MACD continued to climb higher but at a slow pace, as indicated by the shorter histogram, which indicates a lack of upward momentum. RSI (14) has mildly hooked up, a reading of 55.5 indicates the key index is in a neutral to mildly bullish zone. Stochastic at 80.1 has crossed below its slow stochastic line, reflecting the consolidation mode of the key index. Readings from the indicators indicate the FBM KLCI is currently in a consolidation mode, and may continue to do so until there is a firm breakout on either direction.

The short term trend of the FBM KLCI is still up as it continues to stay above the short term moving averages, while the medium to long term uptrend remained intact. Immediate overhead resistance zone is at 1517 to 1523, while the downside support is at 1507 to 1500. With the trading volume maintained above 1 billion shares, the overall market is expected to remain active with rotational play on second and third liners.

Overnight, the Dow rose +18.24 points or +0.16% higher to close at 11,428.56. Today, the FBM KLCI is likely to trade within a range of 1495 to 1527.

This week's expected range: 1470 – 1548
Today’s expected range: 1495 – 1527

Resistance: 1516, 1522, 1527
Support: 1495, 1501, 1505

Stocks to watch: AZRB, GLBHD, MJPERAK, PERAKCORP, PMETAL, TDM, WCT

FBM KLCI - likely to be range-bound

Stocks on Bursa Malaysia ended lower last Friday as investors moved to lock in profits in line with the regional trend. The FBM KLCI closed 14.01 points or 0.92% down at 1507.28 as only four of the 30 stocks in the index were in positive territory. Week-on-week, the key market barometer was up 6.30 points from 1500.98 the previous Friday. Weekly volume rose to 4.968 billion shares valued at RM8.94 billion from 4.89 billion shares valued at RM9 billion the previous week.

The FBM KLCI opened with an up gap of 4.68 points at 1505.66 on Monday but traded lower throughout the day to touch the intra-week low of 1497.61 before rebounded to close at 1501.74 on last minute buying in selected heavyweights. Bursa Malaysia was closed for Awal Muharram holiday on Tuesday. On Wednesday, the key index gained 8.32 points to 1510.06, after opening 2.78 points higher at 1504.52 with continued buying in CIMB and TENAGA which lifted the key market barometer despite a mixed regional market performance. The FBM KLCI gained 11.23 points or 0.74% to 1521.29 on Thursday led by CIMB and PCHEM spurred by positive sentiment in regional markets as well as the country's manufacturing sales figures. And on Friday, the FBM KLCI were mostly in a profit-taking mode throughout the day with investors moved to lock in profits ahead of the weekend to close 14.01 points lower at 1507.28.

On the weekly chart, the FBM KLCI formed a white spinning-top candlestick with a long upper shadow which indicates heavy profit-taking activities when the key index approached the historical high level. Nonetheless, it is still in the bullish territory as it breakout from its recent consolidation to close above the 5 and 10-week moving averages (MA). On the daily chart, the key index formed a bearish engulfing candlestick which indicates heavy sell down on last Friday, but is resting right on the 5-day MA. The key index is expected to receive strong support at the 1500 to 1503 levels provided by the 10 and 30-day MAs.

Weekly MACD continued to slide lower after making a dead-cross the week before, indicates the continued loss in the medium term upward momentum and moving into a correction mode. The daily MACD however, painted a different picture, where it continued to move higher after making a golden-cross, but is now tapering off as shown by the shorter histogram, indicating a loss in the daily upward momentum.

Weekly RSI (14) at 72.9 has continued to move higher from 71.8 the previous week, and is still in the very bullish zone. Daily RSI (14) has however plunged to 54.2 from 63.5, and is back to the neutral zone.

Weekly Stochastic at 73.3 has continued to move lower indicating the continued loss in weekly market strength and the weekly down cycle is not really over yet. Daily Stochastic is at 86, and has hooked downward reflecting the profit-taking day on last Friday. Conflicting signals from the weekly and daily indicators indicates that the FBM KLCI might continue to move sideways.

The underlying medium to long term uptrend of the FBM KLCI remained intact. However, the short term trend is more of a sideways as the 10 and 20-day MAs is still below the 30-day MA. Immediate overhead resistance zone is at 1513 to 1532 while the downside support zone lies at 1500 to 1490.

For the coming week, in view of the absence of any announcement on key economic data locally, the market is expected to look to external developments for direction, and is expected to remain range-bound. The Dow rose +40.26 points or +0.35% higher to close at 11,410.32 last Friday. This week, the FBM KLCI may trade within a range of 1470 to 1548, and for today it is likely to trade within a range of 1486 to 1528.

This week's expected range: 1470 – 1548
Today’s expected range: 1486 – 1528

Resistance: 1513, 1518, 1528
Support: 1486, 1496, 1502

FBM KLCI - higher on strong buying momentum

Stocks on Bursa Malaysia surged yesterday led by CIMB and Petronas Chemicals spurred by positive sentiment in regional markets as well as the country's manufacturing sales figures. The FBM KLCI gained 11.23 points or 0.74% to 1521.29 after opening 2.73 points better at 1512.79. Gainers led losers by 494 to 307 while 267 counters were unchanged. Total volume rose to 1.525 billion shares, valued at RM2.481 billion, from Wednesday’s 1.084 billion shares, valued at RM2.176 billion.

The FBM KLCI opened with an up gap of 2.73 points at 1512.79 and surged to the early high of 1515.85 within the first twenty minutes. Profit-taking activities surfaced and pressed the key index down to the intra-day low of 1511.01. However, strong buying interest which surfaced near noon continuously pushed the key index higher to close at the intra-day high of 1521.29. Chart-wise, the FBM KLCI formed a bullish white candlestick which indicates continuation of the reversal pattern formed on Wednesday. With the bullish move, the key index is expected to continue with its upward momentum to re-test the recent historical high of 1528.01 and 1531.99 soon.

MACD continued to move higher after making the golden-cross on Wednesday, indicating the change in the momentum to the positive side. RSI (14) moved higher to 63.5, and is back to the bullish zone. Stochastic at 90.6 also continued to surge higher into the short term overbought zone, which indicates the market strength is turning strong. Signals from the indicators indicate that the underlying short term momentum of the FBM KLCI is again turning bullish after the recent correction.

The FBM KLCI is now above all its moving averages which indicate the trend change from short term sideways consolidation to bullish uptrend. The medium and long term uptrend remained intact. Immediate overhead resistance zone is at 1528 to 1532 while the downside support zone is at 1510 to 1500. With the improving volume, the market is expected to remain buoyant.

Overnight, the Dow loss a marginal -2.42 points or -0.02% lower to close at 11,370.06. Today the FBM KLCI is likely to trade within a range of 1504 to 1532.

This week's expected range: 1446 – 1532
Today’s expected range: 1504 – 1532

Resistance: 1524, 1528, 1532
Support: 1504, 1507, 1514

FBM KLCI - resumed its short term uptrend

Stocks on Bursa Malaysia ended higher yesterday with continued buying in CIMB and TENAGA lifting the market barometer despite a mixed regional market performance. The FBM KLCI gained 8.32 points to 1510.06, after opening 2.78 points higher at 1504.52. Gainers led losers by 458 to 310 while 277 counters were unchanged. Total volume rose to 1.084 billion shares, valued at RM2.176 billion, from Monday’s 846 million shares, valued at RM1.56 billion.

The FBM KLCI opened with an up gap of 2.78 points at 1504.52 and surged to the intra-day high of 1513.24 within the first thirty minutes, and profit-taking activities sent the key index lower for most part of the day, but a last minute buying of selected heavyweights helped lift the key index to close off low at 1510.06. Chart-wise, the FBM KLCI formed a bullish white candlestick which staged a breakout from its recent consolidation range. The key index managed to breakthrough the resistance at 1510 to reach 1513 and rest on it at close; it is likely that the key index will continue its up move today to re-test higher resistance levels.

MACD continued to move higher, and has just made a bullish golden-cross over its signal line, which is a strong buy signal, indicating the building up of bullish momentum. RSI (14) at 58.2 also moved higher into the mildly bullish zone. Stochastic at 81.4 indicates the market strength is turning strong for the short term. Readings from the indicators indicates that the FBM KLCI is moving out from its consolidation and is gaining strength to move higher.

Short term trend has again turned up as the 5-day moving average (MA) has firmly crossed above the 10-day MA, and the key index is also above all its MAs. The medium and long term uptrend remained intact. Immediate overhead resistance zone is at 1513 to 1532, while the downside support zone is at 1500 to 1474.
Overnight, the Dow gained +13.32 points or +0.12% higher to close at 11,372.48. Today the FBM KLCI is likely to trade within a range of 1496 to 1522.

This week's expected range: 1446 – 1532
Today’s expected range: 1496 – 1522

Resistance: 1514, 1518, 1522
Support: 1496, 1500, 1505

Stocks to watch: AIRASIA, KNM, TDM, OSK, KFIMA, UEMLAND

FBM KLCI - marginally higher on lower volume

Stocks on Bursa Malaysia closed mixed on Monday on mild buying interests in selected finance and plantation-related stocks which helped the benchmark index to stay in positive territory. The FBM KLCI rose by 0.76 point or 0.05% to close at 1501.74, after opening 4.68 points higher at 1505.66. Losers led gainers by 368 to 359 while 278 counters were unchanged. Total volume fell to 846 million shares valued at RM1.56 billion from 966 million shares valued at RM1.64 billion on last Friday. Bursa Malaysia was closed for public holiday yesterday.

The FBM KLCI opened with an up gap of 4.68 points but traded lower throughout the day; it touched the intra-day low of 1497.61 but rebounded to close off low on last minute buying in selected heavyweights. Chart-wise, the FBM KLCI formed a black hanging-man like candlestick which indicates sellers were dominant. The key index is now resting on the 20 and 30-day moving averages (MA) which has given the immediate support to the key index.

MACD is in the positive territory and continued to climb higher, albeit still below its signal-line, indicates a gradual gained in the upward momentum. RSI (14) at 53.6 has gently hooked up, and is still in the neutral zone. Stochastic at 75.7 has continued to climb higher, indicating the continuation of the short term up cycle. Readings from the indicators indicates the FBM KLCI is still generally weak in its momentum, and hence might continue to stay sideways.

The short term trend of the FBM KLCI is currently sideways, nonetheless, its medium to long term trend is still up. Immediate overhead resistance zone is at 1510 to 1532 while the downside support is at 1490 to 1474. With the volume shrinking to below 1 billion shares, the market is expected to remain slow and will be range-bound or sideways in the short term.

Overnight, the Dow fell a marginal -3.03 points or -0.03% lower to close at 11,359.16. Today the FBM KLCI is likely to trade within a range of 1489 to 1514.

This week's expected range: 1446 – 1532
Today’s expected range: 1489 – 1514

Resistance: 1506, 1510, 1514
Support: 1489, 1493, 1497

FBM KLCI - further consolidation with an upward bias

Stocks on Bursa Malaysia went through a choppy week last week with the benchmark FBM KLCI swinging up and down in a sideways consolidation mode, but eventually making a positive gain of 8.93 points, week-on-week, to close last Friday at 1500.98 from previous Friday’s 1492.05. Weekly volume fell to 4.89 billion shares valued at RM9 billion from 6.18 billion shares valued at RM11.32 billion the previous week.

The FBM KLCI opened 3.48 points lower at 1488.57 on last Monday and fell to the intra-week low of 1474.02, losing as much as 18.03 points at its worst, but recovered gradually on bargain-hunting activities in line with the general recovery at key regional markets. The benchmark index fell by 10.72 points to close at 1485.23 on Tuesday in line with bearish sentiments across regional markets on talks China would raise interest rates.

On Wednesday, the FBM KLCI managed to recover from a low of 1,477.57 in morning trade to close up 0.19 point at 1485.42 in the slowest trade for the week of 886.2 million shares. The FBM KLCI staged a strong breakout rally on Thursday with blue-chips counters leading the index up on optimism stronger US economic reports would extend the global economic recovery. At the close, the FBM KLCI was 17.8 points or 1.2% higher to 1503.22, which was also the day's high.

On Friday, profit-taking activities which emerged ahead of the weekend capped gains and the FBM KLCI lost 2.24 points to end the week at 1500.98, off the opening high of 1,508.41.

On the weekly chart, the FBM KLCI formed a piercing-line candlestick which indicates the fight back of the bull after being pushed to the intra-week low of 1474.02. The key index is now closing right below its 5-week moving average (MA) which is currently at 1502.13 but is still above its 10-week MA which is at 1494.45. A weekly close above or below these two levels might see the key index continue moving in that direction.

On the daily chart, the FBM KLCI formed a dark-cloud-cover candlestick which indicates profit-taking by the bears after two days of rebound. The key index is closing right on the crucial psychological level of 1500 but is marginally below the 30-day MA which is currently at 1501.47. A close below the crucial 1500 level would see the index falling back to its sideways range and the consolidation might prolong; whereas a close above the 1508 level will like see the key index moving higher to re-test its recent historical high.

Weekly MACD had just made a dead-cross over its weekly signal line, indicating the continued loss in medium term upward momentum and beginning of the medium term consolidation which may see the key index prolonging its current consolidation process. Daily MACD, however, has continued its upswing to move higher after crossing above the zero-line, and its histogram also turned shorter, albeit still negative, indicating a gradual pick up in the momentum.

Weekly RSI (14) has hooked up and is currently at 71.9 after falling from the recent high of 80.7, and is still in the very bullish zone. Daily RSI (14) is at 53.1 and has hooked downward; it is currently in the neutral zone.

Weekly Stochastic is at 77.3 and has continued to move lower, a cross below the 80 level indicates the continued loss in momentum and also the continuation of the medium term down cycle. However, daily Stochastic has continued to move higher and is currently at 53.8, indicating the continuation of the short term up cycle which could mean a technical rebound under the longer term down cycle. Mixed and contradicting signals from the weekly and daily indicators indicate that the FBM KLCI is likely to continue with its consolidation until clearer and coherent signals are seen.

Short term trend of the FBM KLCI has turned sideways while the medium and long term uptrend is still intact. Immediate overhead resistance zone is at 1510 to 1532 while the immediate downside support zone lies at 1480 to 1474.

For the coming week, the FBM KLCI is expected to continue with its consolidation with an upward bias, given a better-than-expected US employment picture which would support further recovery in global markets on hopes the recovery in the global economy remains intact. 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 rose +19.68 points or +0.17% higher to close at 11,382.09 last Friday. This week, the FBM KLCI may trade within a range of 1446 to 1532, and for today it is likely to trade within a range of 1485 to 1519.

This week's expected range: 1446 – 1532
Today’s expected range: 1485 – 1519

Resistance: 1507, 1513, 1519
Support: 1485, 1491, 1496

FBM KLCI - back above 1500

Stocks on Bursa Malaysia ended mostly higher yesterday encouraged by gains in regional markets. The strong closed on Wall Street overnight, improving investor sentiment following strong US economic data, and hopes that the sovereign debt crisis in Europe would ease have prompted continuous buying interest in selected blue-chips which pushed the benchmark FBM KLCI to close above the crucial 1500 points psychological level. The FBM KLCI advanced 17.80 points or 1.20% to close at 1503.22 after opening 7.11 points higher at 1492.53. Advancers outpaced decliners by 516 to 245 while 296 counters were unchanged. Turnover increased to 979 million shares worth RM1.79 billion, from Wednesday’s 886 million shares valued at RM1.59 billion.

Taking cue from Dow’s strong performance overnight, the FBM KLCI opened with an up gap of 7.11 points and surged to the morning session’s high of 1500.30, after that, the key index moved sideways within 1496 to 1500 for most part of the day. A last minute buying of selected key heavyweights helped pushed the key index through the 1500 level to close at 1503.22. Chart-wise, the FBM KLCI formed a bullish Marubozu candlestick which indicates buyers were in control for the day, and is expected to continue its upward momentum to move higher. After breaking through the tough resistance at 1500, the FBM KLCI is again turning positive for the short term. Strong overhead resistance zone is expected at 1508 to 1532.

MACD has turned upward to move back into the positive zone after breaking below the zero-line the day before, and histogram also turned shorter drastically indicating a pick up in the upward momentum, albeit the MACD is still below its signal-line. RSI (14) at 54.5 has turned strongly upward from 43.4 a day ago, moving from the mildly bearish zone to the mildly bullish zone. Stochastic at 34.6 has hooked up strongly from 26 a day ago crossing above its slow stochastic line. Signals from the indicators indicate that the short term consolidation phase of the FBM KLCI is likely to be over; nevertheless, it will require one or two more days’ data to confirm.

With the strong up move of the FBM KLCI yesterday, the short term trend of the key index has turned upward. The medium to long term uptrend, however, remained intact. Immediate strong resistance is expected at 1513 level while the downside support zone lies at 1490 to 1474. Overnight, the Dow rose +100.43 points or +0.89% higher to close at 11,356.21. Today, the FBM KLCI is likely to trade within a range of 1485 to 1514.

This week's expected range: 1442 – 1526
Today’s expected range: 1485 – 1514

Resistance: 1507, 1510, 1514
Support: 1485, 1489, 1496

Stock to watch: MUHIBAH, INCKEN, KEURO, SAPCRES, PENERGY, DIALOG

FBM KLCI - short term bearish, medium term trend at test

Stocks on Bursa Malaysia closed mixed yesterday amid lack of strong leads and investors stayed on the sidelines ahead of the release of the US employment and retail sales data last night. Investor sentiment remained fragile due to concerns over interest increases in China and Europe's debt crisis. Mild buying in selected blue-chips pushed the benchmark FBM KLCI back into positive territory. The FBM KLCI gained 0.19 point or 0.01% to close at 1485.42 after opening 2.54 points lower at 1482.69. Losers led gainers by 366 to 364 while 296 counters were unchanged. Total volume fell to 886 million shares valued at RM1.591 billion from Tuesday’s 1.02 billion shares valued at RM2.06 billion.

The FBM KLCI opened 2.54 points lower at 1482.69 and fell to the intra-day low of 1477.57 in early morning trade, and rebounded to 1481.27 by noon. Buying interest surfaced in the afternoon session and pushed the key index to the intra-day high of 1487.67 before profit-taking trimmed gains to close off high at 1485.42. Chart-wise, the FBM KLCI formed a white spinning-top candlestick with long lower shadow, which indicates the bear was initially stronger in pushing the key index down, but later, the bull fights back and pushed the key index back to the positive territory. The FBM KLCI has tested the support at 1480 and rebounded off it and is now closing right above the 60-day moving average (MA) which is at 1483.73. This indicates the medium term MA is providing good support to the index.

MACD continued to slide lower and has just crossed the zero line which indicates the momentum has turned bearish and an end to the short term bull trend. RSI (14) at 43.3 is flat and continued to stay in the mildly bearish zone. Stochastic is at 26.3 and continued to slide lower, indicating weak market strength. Readings from the indicators indicates that the FBM KLCI might continue its consolidation and remained range-bound.

The short term trend of the FBM KLCI remained bearish or down as it continues to stay below the short term MAs. The medium term trend is at test now as the key index has penetrated the 60-day MA and rebounded off it. If the FBM KLCI failed to stay above the 60-day MA, then it might continue to slide lower towards the 1465 support area. The long term uptrend, however, remain intact. With the overall trading volume sliding below the 1 billion shares mark, the market is expected to remain quiet.

Overnight, the Dow rose +249.76 points or +2.27% higher to close at 11,255.78. Today, the FBM KLCI is likely to trade within a range of 1469 to 1498.

This week's expected range: 1442 – 1526
Today’s expected range: 1469 – 1498

Resistance: 1489, 1494, 1498
Support: 1469, 1473, 1479

Stock to watch: MHB, SAPCRES

FBM KLCI - lower on continued selling pressure

Stocks on Bursa Malaysia closed lower yesterday on selling pressure in selected key heavyweights, and the benchmark fell in line with bearish sentiments across regional markets on talks China would raise interest rates. The FBM KLCI fell by 10.72 points or 0.72% to close at 1485.23, after opening 1.17 points lower at 1494.78. Decliners outpaced advancers by 465 to 299 while 259 counters were unchanged. Turnover declined to 1.015 billion shares valued at RM2.055 billion from Monday’s 1.049 billion shares valued at RM1.929 billion.

The FBM KLCI opened 1.17 points lower but traded to the intra-day high of 1497.50 within the first fifteen minutes, and selling pressure surfaced which pushed the key index lower throughout the day with intermittent rebound. The key index finally succumbed to heavy selling pressure to close at the low of the day. Chart-wise, the FBM KLCI formed a bearish black candlestick which indicates the bear was in control throughout the day. Following this price action, the key index is expected to continue sliding lower today to re-test the recent support at 1474. If this level could not hold, there is a strong likelihood that the key index might slip further downward to the next support at 1465.

MACD continued to slide lower and is approaching the zero line, indicating the momentum is turning bearish, a cross below the zero line would confirmed the beginning of the medium term bearish trend. RSI (14) at 43.3 has again hooked down, which indicates the market strength is moving into the bearish zone. Stochastic has again turned downward and crossed its slow stochastic line, indicating the resumption of the downward move. Signals from the indicators are indicating a bearish short term outlook for the FBM KLCI, and hence the key index might continue its southward journey.

The short term trend of the FBM KLCI is down while its medium to long term trend is still up. However, if the medium term trend is under challenge now with the 60-day moving average support being tested soon, if the key index could not hold above the 60-day MA, there would be more downside to come. Immediate support zone for the FBM KLCI is at 1474 to 1457 while the strong overhead resistance is at 1500.
Overnight, the Dow fell -46.47 points or -0.42% lower to close at 11,006.02. Today, the FBM KLCI is likely to trade within a range of 1465 to 1509.

This week's expected range: 1442 – 1526
Today’s expected range: 1465 – 1509

Resistance: 1493, 1501, 1509
Support: 1465, 1477, 1481