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
No comments:
Post a Comment