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
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