Stocks on Bursa Malaysia ended broadly higher yesterday with the FBM KLCI managed to finish higher at the eleventh hour, holding up its winning streak for the fourth consecutive day as losses prompted by profit taking was well absorbed. The FBM KLCI ended 2.2 points or 0.14% higher at 1,568.37 from Wednesday’s close of 1,566.17, after touching an intra-day high and low of 1,576.95 and 1,562.75, respectively. Gainers led losers by 570 to 295 while 284 counters were unchanged. Volume amounted to 2.204 billion shared worth RM3.141 billion, down from 2.346 billion shares, valued at RM3.69 billion registered on Wednesday.
The FBM KLCI opened with an up gap of 4.56 points at 1570.53 and surged to the intra-day high of 1576.95 within the first thirty minutes. Heavy selling pressures arising from profit-taking activities pushed the key index down to its intra-day low of 1562.75, losing 3.42 points at its worst, and the key index continue to hover in the negative territory until the eleventh hour where buying of selected blue-chips helped pushed the key index back to its positive territory to register another record close. Chart-wise, the FBM KLCI formed a black spinning-top candlestick which indicates hesitation of the key index to move forward after climbing to such height within a short span of four days. The appearance of this candlestick, a form of Doji, may forewarn of a possible turning point when appeared after an uptrend.
MACD continued to surge higher, indicating a continuation in the upward momentum. RSI (14) rose marginally higher to 76.2, and is tapering off, indicates a slow down in the upward strength, while Stochastic has taken the lead to hook downward, albeit still above its slow stochastic line, indicates a possible correction ahead.
The FBM KLCI is currently in a very strong uptrend. The appearance of a spinning-top candlestick may forewarn of impending pull-back, nevertheless, any pull-back should be viewed as an opportunity to collect quality shares at lower price level. Immediate downside support is expected at 1562, 1550, 1542 and 1532.
Overnight, the Dow fell -25.58 or -0.22% lower to close at 11,697.31. Today, the FBM KLCI is likely to trade within a range of 1547 to 1591.
This week's expected range: 1488 – 1600
Today’s expected range: 1547 – 1591
Resistance: 1576, 1584, 1591
Support: 1547, 1555, 1561
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