FBM KLCI - continue moving higher

Stocks on Bursa Malaysia ended yesterday neared its seven-week high on extended gains by heavyweights such as Maybank in line with regional peers and the overnight rally on Wall Street. The FBM KLCI ended 11.54 points or 0.76% higher at 1,531.63, after opening 2.89 points better at 1,522.98. Advancers outnumbered decliners by 670 to 242 while 229 counters were unchanged. Turnover surged to 2.338 billion shares, worth RM2.481 billion, from 1.756 billion shares, worth RM2.182 billion, transacted on Tuesday.

The FBM KLCI opened with an up gap of 2.89 points at 1,522.98 and touched the intra-day low of 1,522.36 within the first fifteen minutes. The key index then rebounded to move higher for the rest of the day with intermittent mild profit-taking and hit the intra-day high of 1,532.68 before retracing to close off high at 1,531.63. Chart-wise, the FBM KLCI formed a bullish white candlestick which is a continuation of the bullish breakout formed on Tuesday, and this confirmed our view that once the key index is able to close above the 1,530 level, it will turn bullish. With this bullish up move, the key index is likely to move higher to challenge the next resistance zone at 1,533 to 1,545.

MACD continued to move higher after crossing the zero-line yesterday, indicating that the FBM KLCI has turned bullish. RSI (14) is higher at 62.2, moving into the bullish zone. Stochastic also continued to surge higher to 89.3, moving into the short term overbought zone, nonetheless, it also indicates that the key index is gaining strength. Readings from the indicators showed that the FBM KLCI has turned bullish, and this also has the support of a surged in total trading volume. Hence, the key index is expected to continue its momentum to climb higher in the near term.

The short term trend of the FBM KLCI remained up, and the key index has also successfully closed above the 60-day moving average, indicating the medium term trend has begun to turn up. The long term uptrend is still intact. Immediate overhead resistance zone is at 1,533 to 1,545, while the immediate downside support zone is at 1,520 to 1,510.

Overnight, the Dow rose +71.60 points or +0.58% to close at 12,350.61. Today, the FBM KLCI is likely to trade within a range of 1,514 to 1,544.

This week's expected range: 1483 – 1539
Today’s expected range: 1514 – 1544

Resistance: 1536, 1540, 1544
Support: 1514, 1518, 1525

Stocks to watch: VS, NAGAMAS, KUB

FBM KLCI - gradually turning bullish

Stocks on Bursa Malaysia ended higher yesterday despite a lukewarm regional market with heavyweights Petronas Chemicals and Sime Darby lifting buying sentiment. The FBM KLCI finished 5.84 points or 0.39% higher at 1,520.09 after opening 2.78 points better at 1,517.03. Advancers outpaced decliners by 543 to 264 while 269 counters were unchanged. Turnover rose to 1.756 billion shares worth RM2.182 billion from 1.280 billion shares worth RM1.613 billion on Monday.

The FBM KLCI opened with an up gap of 2.78 points at 1,517.03 but was sold down to hit the intra-day low of 1,514.05 on profit-taking within the first half an hour of trading. The key index rebounded from there and gradually climbed higher to finish the day at the highest point of 1,520.09. Chart-wise, the FBM KLCI formed a bullish white candlestick which breakout from the consolidation, and hence is likely to move higher to challenge the next level of resistance at 1,525 posted by the 60-day moving average (MA) and the critical resistance level at 1,530. If the FBM KLCI is able to close above the 1,530 level, the recent correction which started on 18-Jan-2011 would be considered over, and the key index would start a new uptrend.

MACD continued to move higher, and has just crossed the zero-line, signifying the FBM KLCI has just turned bullish. RSI (14) has turned upward to hit 56.4, moving into the mildly bullish zone. Stochastic continued to move higher and is at 82.5, signifying a continued gain in the key index’s strength. Readings from the indicators showed that the FBM KLCI is gradually turning bullish and is expected to continue to move higher.

The short term trend of the FBM KLCI remained up, and the 10-day MA has also just made a golden cross above the 30-day MA, confirming the short term uptrend. The medium term trend is sideways while the long term uptrend remained intact. Immediate resistance zone is at 1,525 to 1,530, while the downside support zone is now at 1,510 to 1,500.

Overnight, the Dow gained +81.13 points or +0.67% to close at 12,279.01. Today, the FBM KLCI is likely to trade within a range of 1,510 to 1,527.

This week's expected range: 1483 – 1539
Today’s expected range: 1510 – 1527

Resistance: 1523, 1525, 1527
Support: 1510, 1512, 1516

FBM KLCI - lower on mild profit taking

Stocks on Bursa Malaysia ended lower yesterday following the path of key Asian peers. Trading in key Asian markets was lackluster mainly due to renewed fears over the slow progress in Japan’s tsunami hit nuclear plant. The FBM KLCI finished at 1,514.25, down 1.3 points or 0.09%, after opening 1.05 points lower at 1,514.5. Losers led gainers by 379 to 371 while 305 counters were unchanged. Turnover rose to 1.280 billion shares, worth RM1.613 billion, from 1.16 billion shares, worth RM1.73 billion, transacted last Friday.

The FBM KLCI opened with a down gap of 1.05 points at 1,514.50 but rebounded to the intra-day high of 1,517.47 within the first hour of trade. Profit-taking activities which appeared sent the key index to the intra-day low of 1,511.98 near lunch break, and it rebounded in the afternoon to close off low at 1,514.50. Chart-wise, the FBM KLCI formed another Doji candlestick which indicates indecision of the market direction. However, as the FBM KLCI had closed lower, this showed that the key index is taking a pause to consolidate itself after rising consecutively for six days.

MACD continued to climb higher, but on a reduced pace, as shown by the histogram that is rounding off. This indicates the upward momentum is slowing down. RSI (14) is at 53 and has hooked downward, reflecting the mild correction of the key index. Stochastic is higher at 77.5, which indicates a continuation of the short term up cycle. Readings from the indicators showed that the upward momentum of FBM KLCI is slowing down and may consolidate itself after the recent run-up.

Short term trend of the FBM KLCI remained up, while the medium term trend is sideways, and the long term uptrend remained intact. Immediate overhead resistance zone is at 1,519 to 1,530, while the downside support zone is at 1,505 to 1,490. The overall market is likely to be mixed with the second and third liners remain active while the blue-chip stocks goes into consolidation.

Overnight, the Dow fell -22.71 points or -0.19% to close at 12,197.88. Today, the FBM KLCI is likely to trade within a range of 1,506 to 1,523.

This week's expected range: 1483 – 1539
Today’s expected range: 1506 – 1523

Resistance: 1517, 1520, 1523
Support: 1506, 1509, 1511

Stocks to watch: DIGISTA, PWORTH, MIECO,WTK, LINGUI, SUBUR, JTIASA, TAANN

FBM KLCI - gradually turning positive

Stocks on Bursa Malaysia finished last week on a firm note on Friday as positive global cues generated buying interests in the local market. The FBM KLCI rose by 1.71 points or 0.11% to close the week at 1,515.55, and it gained 11.66 points week-on-week from the previous Friday’s close of 1,503.89. Gainers outpaced losers by 483 to 278, while 316 counters were unchanged. Turnover rose to 1.16 billion shares worth RM1.73 billion from 1.04 billion shares worth RM1.853 billion on Thursday. Weekly volume surged to 6.125 billion shares, valued at RM8.214 billion, from 5.1 billion shares, valued at RM7.74 billion, the previous week.

The FBM KLCI opened 1.88 points lower at 1,502.01 on last Monday and slipped to the intra-week low of 1,498.34, but rebounded to continuously move higher for the rest of the week. It touched the intra-week high of 1,518.42 on Friday before pulling back to close off high at 1,515.55. On the weekly chart, the FBM KLCI formed a bullish white candlestick which confirmed the reversal signal generated by the piercing-line candlestick formed the previous week. With this price action, the FBM KLCI is likely to move higher this week to challenge the overhead resistance zone of 1,524 to 1,545.

On the daily chart, the FBM KLCI formed a Doji candlestick which gapped away from Thursday’s candle. This candlestick indicates that the market was reluctant to move higher and faced some mild profit-taking when the week came to an end. Nonetheless, the FBM KLCI had risen consecutively for six days, albeit on a gradual pace. The key index had reclaimed the level just before the Japanese tsunami selling started, and it goes to show that worries over the impact of the disaster in Japan on the rest of Asia has eased.

Weekly MACD continued to slide lower but on a reduced pace, as shown by the second shorter histogram on the weekly chart. This indicates the weekly downward momentum is weakening and positive upward momentum is in the building. Daily MACD, however, had continued to move higher, albeit still in the negative zone. This indicates the daily upward momentum is gradually building up.

Weekly RSI (14) was higher at 55.3 compared with 53.1 the previous week, and has turned mildly bullish. Daily RSI (14) also climbed higher to 53.9, although in a slow pace, but is gradually approaching the mildly bullish zone.

Weekly Stochastic has hooked downward, however, it is forming a bullish divergence. Daily Stochastic is at 74.1 and had continued to move higher, indicating a continuation of the short term up cycle and the gradual improving of market strength.

Readings from the indicators showed that the FBM KLCI has probably seen its worst for the time being, and is gradually turning positive. However, more data is required for confirmation.

Short term trend of the FBM KLCI has turned upward, as the key index is closing firmly above the short term moving averages (MA). The medium term trend, as indicated by the 50 and 60-day MAs is sideways, while the long term uptrend remained intact. In order for the FBM KLCI to turn bullish, it will have to cross the first hurdle at 1,524 posted by the 60-day MA and follow by clearing the resistance at 1,530. Immediate overhead resistance zone is at 1,519 to 1,530, while the downside support zone is at 1,505 to 1,490.

Last Friday, the Dow rose another +50.03 points or +0.41% to close at 12,220.59. This week, the FBM KLCI is likely to be range-bound with an upward bias, and may trade within a range of 1,483 to 1,539, and for today it is likely to trade within a range of 1,509 to 1,523.

This week's expected range: 1483 – 1539
Today’s expected range: 1509 – 1523

Resistance: 1518, 1521, 1523
Support: 1509, 1511, 1513

Stocks to watch: HWGB, MAHSING

FBM KLCI - higher on lower volume

Stocks on Bursa Malaysia held on to their gains until the end of trade yesterday on continued buying interest in selected blue chips. The FBM KLCI gained 1.87 points or 0.12% to 1,513.84 after opening 1.12 points higher at 1,513.09. Gainers outpaced losers by 444 to 299 while 306 counters were unchanged. Turnover fell to 1.042 billion shares worth RM1.853 billion from Wednesday’s 1.295 billion shares worth RM1.779 billion.

The FBM KLCI opened 1.12 points higher at 1,513.09 but was sold down to the intra-day low of 1,510.00 on profit-taking in the first hour of trade. The key index, however, rebounded from there to climb to the intra-day high of 1,514.91 before closing off high at 1,513.84. Chart-wise, the FBM KLCI formed a hanging-man like candlestick which is a possible top reversal candlestick pattern. This goes to show that the key index is facing some selling pressure when it moves into the resistance zone of 1,510 to 1,530.

MACD continued to move higher, albeit in the negative zone, indicates that the momentum is picking up gradually. RSI (14) is higher at 52.9, and is still in the neutral zone with a bullish bias. Stochastic continued to climb higher to 68.2, which indicates a continuation of the short term up cycle and gradual gain in market strength. Readings from the indicators showed that the FBM KLCI is gaining is upward momentum gradually, and hence may continue to move higher.

The current short term trend of the FBM KLCI is up, as the key index continued to stay above it short term moving averages. The medium term trend has turned sideways as indicated by the 60-day MA which has turned flat, while the long term trend remained up. Immediate overhead resistance zone for the FBM KLCI is now at 1,515 to 1,530 while the downside support zone is at 1,500 to 1,474.

Overnight, the Dow rose +84.54 points or +0.70% to close at 12,170.56. Today, the FBM KLCI is likely to trade higher within a range of 1,506 to 1,520.

This week's expected range: 1457 – 1531
Today’s expected range: 1500 – 1519

Resistance: 1516, 1518, 1520
Support: 1506, 1508, 1510

FBM KLCI - higher on lower volume

Stocks on Bursa Malaysia managed to hold on to gains to close in positive territory yesterday despite a negative lead from Wall Street, which ended Tuesday’s trading mostly lower. The FBM KLCI gained 2.87 points or 0.19% to 1,511.97, after moving in and out of the positive territory following losses in several blue-chip stocks. Gainers outpaced losers by 515 to 251 while 284 counters were unchanged. Turnover, however, fell to 1.295 billion worth RM1.779 billion from Tuesday’s 1.435 billion shares worth RM1.688 billion.

The FBM KLCI opened 3.14 points lower at 1,505.96 and moved lower to touch the intra-day low of 1,504.95. It then rebounded to gradually climb higher and ended the day at the day’s high of 1,511.97. Chart-wise, The FBM KLCI formed a bullish piercing-line candlestick pattern which indicates the market was initially lower on fear, but the bulls fight back to lift the key index back to the positive territory. The key index had found support from the 5 and 20-day moving averages (MA) and rebounded from there. It is now closing just above the upper downtrend channel line, and may continue the up move to challenge the immediate resistance zone at 1,515 to 1,530.

MACD continued to move higher, but is still below the zero line, indicating the momentum is picking up in a gradual manner. RSI (14) climbed marginally to 51.9, and is still in the neutral zone with a bullish bias. Stochastic continued to climb higher to 63.5 which indicate an increase of the market strength and a continuation of the up cycle. Readings from the indicators showed that the FBM KLCI is gradually turning bullish.

The short term trend of the FBM KLCI is currently up, while the medium term trend is sideways, and the long term uptrend remained intact. The key index will have to move above 1,530-level in order for it to break away from the downtrend channel and start a new uptrend. Immediate overhead resistance zone for the key index is now at 1,515 to 1,530 while the downside support zone is at 1,500 to 1,474.

Overnight, the Dow rose +67.39 points or +0.56% to close at 12,086.02. Today, the FBM KLCI is likely to trade within a range of 1,500 to 1,519.

This week's expected range: 1457 – 1531
Today’s expected range: 1500 – 1519

Resistance: 1515, 1517, 1519
Support: 1500, 1502, 1507

FBM KLCI - marginally higher

Stocks on Bursa Malaysia finished in positive territory yesterday helped by gains in finance and plantation blue-chips. The overnight jump on Wall Street and firmer Asian stocks helped boost overall market sentiment, however, the key index dipped in and out of positive territory following losses in industrial and trading/services stocks. The FBM KLCI advanced 0.22 point or 0.01% to 1,509.10 after opening 3.71 points higher at 1,512.59. Gainers outpaced losers by 518 to 250 while 276 counters were unchanged. Turnover rose to 1.435 billion shares worth RM1.688 billion from 1.19 billion shares worth RM1.43 billion on Monday.

Taking cue from the strong performance of Wall Street overnight, the FBM KLCI opened with an up gap of 3.71 points at 1,512.59 and surged to the intra-day high of 1,514.20 within the first fifteen minutes. Profit-taking activities immediately appeared and sent the key index lower into the negative territory to hit the intra-day low of 1,507.51 before a last minute buying of selected heavyweights pushed the key index back to the positive territory to make a marginal gain. Chart-wise, the FBM KLCI formed a black spinning-top candlestick which indicates the key index was hesitant to move higher. As mentioned in previous analysis, the zone from 1,510 to 1,530 is an area of heavy resistance, and the FBM KLCI will have to breakthrough this resistance zone to re-gain its uptrend.

MACD continued to move higher, but is still in the negative territory, and hence the upward move may just be a technical rebound until the MACD cross above the zero line. RSI (14) is at 50.4 at the neutral level. Stochastic climb higher to 58.4 which indicates a continuation of the upward momentum and the market strength is currently neutral. Readings from the indicators showed that the FBM KLCI is gradually turning positive but is still weak, technically.

As the FBM KLCI has closed above the short term moving averages (MA), the short term trend has turned up. However, this could be just part of a technical rebound. The medium term trend is sideways while the long term trend remained up. The FBM KLCI is currently closing right below the upper downtrend channel, and hence will require more effort to break above this channel in order to resume its uptrend. Immediate overhead resistance zone for the key index is now at 1,515 to 1,530 while the downside support zone is at 1,500 to 1,474.

Overnight, the Dow fell a marginal -17.90 points or -0.15% to close at 12,018.63. Today, the FBM KLCI is likely to trade within a range of 1,499 to 1,521.

This week's expected range: 1457 – 1531
Today’s expected range: 1499 – 1521

Resistance: 1513, 1517, 1521
Support: 1499, 1503, 1506

Stocks to watch: DIGISTA, PERISAI, EKOVEST, DRBHCOM

FBM KLCI - higher on improved sentiment

Stocks on Bursa Malaysia ended higher yesterday on follow-through interest in selected blue-chips on the back of a rise in most Asian stocks. The FBM KLCI finished 4.99 points or 0.33% higher at 1,508.88 after opening lower at 1,502.01. Gainers outpaced losers by 587 to 200 while 231 counters were unchanged. Turnover rose to 1.19 billion shares worth RM1.43 billion from 988.923 million shares worth RM1.50 billion, recorded last Friday.

The FBM KLCI opened 1.88 points lower at 1,502.01 and slid to the intra-day low of 1,498.34 in early morning trade. It rebounded to recover loss ground and move higher gradually to hit the intra-day high of 1,509.93 before pulling back on mild profit-taking to end the day at 1,508.88. Chart-wise, the key index formed a bullish white candlestick which indicates buyers were in control for the day, and a continuation of the breakout last Friday. With this steady up move, the FBM KLCI is likely to continue moving higher today to challenge the next overhead resistance zone at 1,515 to 1,530.

MACD has made a golden-cross over its signal-line and also formed bullish divergence which is bullish signals, albeit still in the negative zone. RSI (14) has continued to move higher, and has just crossed the 50-level, which indicates that the FBM KLCI has move back to the bullish neutral zone, and is likely to continue its momentum to move higher. Stochastic is higher at 48.3, which indicates the continuation of the up cycle and the gradual gain in short term market strength. Readings from the indicators showed that the FBM KLCI is gradually moving out of its bearish mode to gradually turn bullish.

The FBM KLCI has now closed above the short term 5, 10, 20 and 30-day moving averages (MA), and hence has gradually turned positive for the short term, and is likely to continue its upward momentum to challenge the medium term resistance posted by the 50, and 60-day MAs at 1,525 level. If the key index is able to close above the 1,530 level, it would reverse the current downtrend to an uptrend. Immediate overhead resistance zone for the key index is now at 1,515 to 1,530 while the downside support zone is at 1,500 to 1,474.

Overnight, the Dow rose another +178.01 points or +1.50% to close at 12,036.53. Today, the FBM KLCI is likely to trade upward within a range of 1,489 to 1,522.

This week's expected range: 1457 – 1531
Today’s expected range: 1489 – 1522

Resistance: 1513, 1518, 1522
Support: 1489, 1494, 1501

Stocks to watch: MBSB, PMETAL

FBM KLCI - likely to further recover

Stocks on Bursa Malaysia closed higher last Friday in line with the gains on Asian markets and Wall Street overnight. Wall Street and regional markets staged a rebound after the Group of Seven rich nations agreed on a joint intervention to curb advances in the Japanese currency. The FBM KLCI crossed the 1,500-level to close 11.80 points higher at 1,503.89, and week-on-week, it gained 8.27 points from 1,495.62. Advancers outnumbered decliners by 501 to 250 while 271 counters were unchanged. Turnover was higher at 988.923 million shares worth RM1.504 billion from 922.172 million shares worth RM1.467 billion on Thursday. However, weekly volume fell to 5.097 billion shares valued at RM7.738 billion from 5.50 billion shares valued at RM8.50 billion the previous week.

The FBM KLCI saw a volatile week last week where it opened on last Monday with a big down gap of 9.52 points at 1,486.10 and slipped to the intra-day low of 1,480.63, losing as much as 15.09 points at its worst, before rebounding to close almost unchanged at 1,495.37. On Tuesday, the key index opened 0.93 point lower at 1,494.42 and plunged to the intra-week low of 1,476.24 on heavy selling pressure in the morning session, losing as much as 19.11 points at its worst, and it rebounded on bargain hunting to close off low at 1,484.14. On Wednesday, the FBM KLCI was more stable, it opened 5.77 points higher at 1,489.91 and close at the day’s high of 1,492.44 after touching an intra-day low of 1,484.71. On Thursday, the FBM KLCI opened with a big down gap of 9.15 points at 1,483.29 following the hefty fall on Wall Street overnight, but managed to rebound from there to close almost unchanged at the day’s high of 1.492.09. And on Friday, the FBM KLCI staged a breakout from its consolidation range of the week to close at the week’s high of 1,503.89, backed above the psychological 1,500-level.

On the weekly chart, the FBM KLCI formed a piercing-line candlestick, which indicates the counter-attack of the bulls after a week of battled by the bears. The key index found support from the 30-week moving average and closed above it after piercing through it in the earlier part of the week. With the formation of a piercing line candlestick on the weekly chart, the key index is likely to continue its rebound this week.

On the daily chart, the FBM KLCI formed a bullish white candlestick and made a breakout from its consolidation range of the week. With the key index closing above the 1,500-level again, it will give investors on the sideline confidence to come back to the market, and hence will help to push the index higher in the week ahead. Nevertheless, the key index is currently still in the downtrend, it will have to move above the 1,530 level in order to reverse the trend.

Weekly MACD continued to slide lower, but on a slower pace, as shown by the shorter histogram. Daily MACD has turned upward, but is still below its signal-line in the negative territory, and hence the key index is still bearish, and the rebound could be just part of a technical correction to the downtrend.

Weekly RSI (14) is at 53.1 and has hooked up, and it is currently in the neutral zone. Daily RSI (14) has however climbed higher to 47.9 from 41.6, moving towards the neutral zone from the bearish zone.

Weekly Stochastic is at 32.2, and has hooked up to cross its slow stochastic line after forming a bullish divergence, indicating a possible up cycle in the brewing. Daily Stochastic is at 38.8, and has crossed over its daily slow stochastic line, and together with the bullish divergence formed it indicates a possible up cycle in the week ahead.

Readings from the weekly and daily indicators showed that the FBM KLCI is still bearish and weak, but there are signs that it may gradually turn bullish again. However, this will need more data to confirm.

Current trend of the FBM KLCI is still down, as it is still closing below most of the moving averages. Nevertheless, it has just crossed above its very short term 5-day MA, and hence may continue to move higher in the immediate term. Strong overhead resistance zone is expected at the 1,510 to 1,530 levels, while the immediate downside support zone is at 1,490 to 1,474 levels.

Last Friday, the Dow rose another +83.93 points or +0.71% to close at 11,858.52. This week, the FBM KLCI is likely to be range-bound with an upward bias, and may trade within a range of 1,457 to 1,531, and for today it is likely to trade within a range of 1,479 to 1,519.

This week's expected range: 1457 – 1531
Today’s expected range: 1479 – 1519

Resistance: 1509, 1514, 1519
Support: 1479, 1484, 1494

FBM KLCI - stabilising and poised for a reversal

Stocks on Bursa Malaysia closed lower yesterday in line with the prevailing weaknesses on regional markets, spooked by concerns over Japan’s nuclear crisis and the geopolitical tensions in Libya and Bahrain. The FBM KLCI fell 0.35 point or 0.02% to 1,492.09. Decliners outnumbered advancers by 435 to 284, with 263 counters unchanged. Turnover fell to 922.172 million shares worth RM1.467 billion from 931.424 million shares worth RM1.471 billion on Wednesday.

The FBM KLCI opened with a down gap of 9.15 points at 1,483.29 following the hefty fall on Wall Street overnight. The key index dipped to the intra-day low of 1,480.27 within the first five minutes and rebounded from there to gradually recover the losses to close almost unchanged at day’s high of 1.492.09. Chart-wise, the FBM KLCI formed a bullish white piercing-line candlestick which indicates counter-attack by the buyers to overcome sellers in picking up shares while they are in the low level. The FBM KLCI has been congesting in this region for the last four days, and with a dwindling volume it indicates selling pressure is gradually diminishing and the key index is poised for a rebound soon.

MACD continued to slide lower and is tapering off, at the same time the histogram is almost flat, indicating a slow down in the downward momentum. RSI (14) is almost flat at 41.6, and is still in the bearish zone. Stochastic is lower at 27.6, but is tapering off, indicating a slow down in the downward strength. Readings from the indicators indicated that the FBM KLCI is currently still bearish, but there are signs that the bearish force is slowing down, and hence might be poised for a reversal.

The very short term trend of the FBM KLCI has turned sideways, albeit the main trend is still down. The key index has just crossed above the short term 5-day moving average, and might continue to move higher with the appearance of short term buying. Immediate overhead resistance zone is at 1,495 to 1,510, while the immediate downside support zone is at 1,480 to 1,474.

Overnight, the Dow rose +161.29 points or +1.39% to close at 11,774.59. Today, the FBM KLCI is likely to trade within a range of 1,472 to 1,505.

This week's expected range: 1453 – 1537
Today’s expected range: 1472 – 1505

Resistance: 1496, 1500, 1505
Support: 1472, 1476, 1484

Stocks to watch: EKSONS, LINGUI, JTIASA, TAAN, WTK, MEDIAC, VITROX

FBM KLCI - higher on technical rebound

Stocks on Bursa Malaysia recouped two straight days of losses to close higher in line with the rebound in Asian markets. However, global equities are expected to be relatively volatile amid growing concerns over the nuclear crisis in Japan after a devastating earthquake and tsunami last Friday. The FBM KLCI ended yesterday 8.30 points or 0.56% higher at 1,492.44. Advancers outnumbered decliners by 548 to 197 with 252 counters unchanged. Turnover was lower at 931.424 million shares worth RM1.471 billion from 1.452 billion shares valued at RM2.116 billion registered on Tuesday.

The FBM KLCI opened 5.77 points higher at 1,489.91 but profit-taking activities pressed it down to the intra-day low of 1,484.71 near noon. Bargain hunters which appeared in the afternoon snapped up selected blue-chips and helped push the key index to close at the day’s high. Chart-wise, the FBM KLCI formed a hammer candlestick in Harami position, which is a bottom reversal signal; however, the market is still very cautious and more data is required to confirm the reversal. The FBM KLCI is currently still staying within its downtrend channel, and yesterday’s reversal could well be just a technical rebound, which could be short lived.

MACD has continued to slide lower, indicating a continuation of the bearish downward momentum. RSI (14) has hooked up to 41.7 and is still in the bearish zone. Stochastic continued to slide lower to 29.5, indicating continued weakness in the FBM KLCI. Readings from the indicators showed that the key index is still bearish and weak, hence, is likely to continue with its consolidation in the near term.

The trend of the FBM KLCI remained down. Immediate strong overhead resistance zone is at 1,495 to 1,510, while the immediate downside support zone is at 1,484 to 1,474. Critical support level to watch is 1,474, if this support is broken, then the key index is likely to slide further downward to 1,450 level.

Overnight, the Dow fell -242.12 points or -2.04% to close at 11,613.30. Today, the FBM KLCI is likely to trade within a range of 1,479 to 1,500.

This week's expected range: 1453 – 1537
Today’s expected range: 1479 – 1500

Resistance: 1495, 1498, 1500
Support: 1479, 1482, 1487

FBM KLCI - lower on panic selling

Stocks on Bursa Malaysia closed sharply lower yesterday as investors reacted to the panic selling on the Tokyo Stock Exchange and other regional bourses, as the possibility of a large-scale nuclear meltdown in Japan following the deadly earthquake and tsunami last Friday has raised concern. The FBM KLCI fell by 11.21 points or 0.75% to close at 1,484.14. Decliners outnumbered advancers by 812 to 126 while 160 counters were unchanged. Turnover rose to 1.452 billion shares worth RM2.11 billion from Monday’s 802.362 billion shares worth RM1.179 billion.

The FBM KLCI opened 0.93 point lower at 1,494.42 and plunged to the intra-day low of 1,476.24 on heavy selling pressure in the morning session, losing as much as 19.11 points at its worst. The key index then rebounded on bargain hunting to close off low at 1,484.14. Chart-wise, the FBM KLCI formed a bearish black candlestick with a lower shadow which indicates sellers were dominant initially but buyers came in later to support selected index-linked counters. With the down move yesterday, the FBM KLCI had continued to stay within the current downtrend channel, and is expected to continue doing so in the near term. The critical support level to watch now is the 1,474 level, if this level could not hold, and then there is a strong likelihood that the FBM KLCI will slide towards the 1,450 level.

MACD continued to move lower and made a dead-cross over its signal line, issuing a strong sell signal. RSI (14) is at 37.1 and had continued to slide lower into the bearish zone. Stochastic had slid lower to 31.5, indicating a continuation of the down cycle and weak market strength. Readings from the indicators showed a very bearish condition of the FBM KLCI, and this is likely to continue for a while.

The FBM KLCI is currently on a downtrend as it is closing below the short, medium and long term moving averages. Immediate overhead resistance zone is at 1,495 to 1,509 while the immediate downside support zone is at 1,480 to 1,474. Overnight, the Dow fell -137.74 points or -1.15% to close at 11,855.42. Today, the FBM KLCI is likely to trade within a range of 1,456 to 1,514.

This week's expected range: 1453 – 1537
Today’s expected range: 1456 – 1514

Resistance: 1494, 1504, 1514
Support: 1456, 1466, 1475

FBM KLCI - almost flat

Stocks on Bursa Malaysia closed mixed yesterday in line with other Asian markets as investors digested details of the full impact of Friday's earthquake and tsunami in Japan. Asian markets were mostly in the red as the recent devastating earthquake in Japan shattered investor sentiment. The FBM KLCI eased 0.27 point or 0.02% to 1,495.35 after opening 9.52 points lower at 1,486.10. Decliners outnumbered advancers by 352 to 308 while 291 counters were flat. Turnover slipped to 802.362 million shares worth RM1.179 billion from 1.020 billion shares worth RM1.853 billion on last Friday.

The FBM KLCI opened with a big down gap of 9.52 points at 1,486.10 and slipped to the intra-day low of 1,480.63 in the first fifteen minutes, losing as much as 15.09 points at its worst, and the key index rebounded from there to hit the intra-day high of 1,500.21 before retreating to close off high at 1,495.37, closing almost unchanged. Chart-wise, the FBM KLCI formed a white candlestick in star position, which indicates counter-attack by the bulls after the index opened lower on fear factor. The key index has fallen back into the downtrend channel; in order to reverse up, it has to at least close above the psychological resistance level at 1,500. Otherwise, there is a high chance that the key index will slide lower to test the lower support levels.

MACD continued to slide lower, and is just slightly above the signal-line, and a crossover would generate a strong bearish sell signal. RSI (14) is flat at 41.2 in the bearish zone. Stochastic slipped lower to 51.3, indicating a continuation of the down cycle. Readings from the indicators showed that the FBM KLCI is bearish and might continue with its consolidation in the near term.

The trend of the FBM KLCI is currently down, as it is now closing below its short, medium and long term moving averages. In order to reverse this downtrend the key index will have to reverse up to close above the 1,530 level. Immediate overhead resistance zone is at 1,500 to 1,509 while the immediate downside support zone is at 1,480 to 1,474.

Overnight, the Dow fell -51.24 points or -0.43% to close at 11,993.16. Today, the FBM KLCI is likely to trade within a range of 1,464 to 1,520.

This week's expected range: 1453 – 1537
Today’s expected range: 1464 – 1520

Resistance: 1504, 1512, 1520
Support: 1464, 1472, 1483

FBM KLCI - further consolidation ahead

Stocks on Bursa Malaysia ended sharply lower last Friday on extended selling pressures, triggered by investor concern about the crisis in Libya and the massive earthquake in Japan. The FBM KLCI dropped 21.29 points or 1.4%, to 1,495.62, and week-on-week, the key index fell 26.99 points, or 1.8%, from 1,522.61 the previous Friday. Decliners outnumbered advancers by 678 to 118 while 207 were unchanged. Turnover fell to 1.02 billion shares worth RM1.85 billion from 1.09 billion shares worth RM1.56 billion on Thursday. Weekly volume fell to 5.50 billion shares, valued at RM8.50 billion from 5.84 billion shares valued at RM8.7 billion recorded the previous week.

After registering a huge gain of 2.2% the previous week, the FBM KLCI opened last Monday on a weak note, falling 1.27 points to 1,521.34 due to an apparent profit-taking, spooked by geopolitical uncertainty, and ended Monday at 1,515.74, down 6.87 points. On Tuesday, the FBM KLCI rebounded to close 1.92 points higher at 1,517.66 despite a weaker close on Wall Street overnight. The key index continued to rise another 6.03 points to 1,523.69 on Wednesday, taking cue from strong overseas markets, and increased interest on sectors related to the Economic Transformation Programme (ETP) initiatives. In the absence of compelling news on the horizon, the key index retraced 6.78 points to 1,516.91 on Thursday. On Friday, the FBM KLCI shed a further 21.29 points to 1,495.62 on follow-through liquidation.

On the weekly chart, the FBM KLCI formed a bearish Harami candlestick pattern, which is a reversal pattern, and hence, the key index is likely to continue with its correction and consolidation process this week. In fact, the FBM KLCI has been in the consolidation for the last four to five weeks trading within a range of 1,474 to 1,529, and might continue to do so. The key index is now below its 5, 10 and 20-week moving averages (MA), but was supported by the 30-week MA which is currently at 1,494, and a close below this level on the weekly chart is likely to see the key index sliding further southward.

On the daily chart, the FBM KLCI has again fallen back into its downtrend channel, and closed below the short, medium, and the important 120-day long term MA, signaling a resumption of the downtrend. The critical support level for the FBM KLCI this week will be the 1,474 level. If this level could not be defended, there is a high likelihood that the key index will slip further downward to test the 1,450 support level.

Weekly MACD has resumed its downward slide after a slow down last, as shown by the weekly histogram. Daily MACD has hooked downward after rising for a week, signaling the resumption of the bearish momentum, and confirming our view that the rise of the key index could be just a technical rebound, as mentioned in previous analysis.

Weekly RSI (14) has hooked downward, fell from the previous week’s reading of 57.3 to 51.6, moving into the neutral zone, and reflecting the consolidation. Daily RSI (14) has fell drastically to 41.3 from 50.5, signaling the key index has turned bearish on the daily chart.

Weekly Stochastic has again hooked downward, and is at 27.6, signaling the continuation of the down cycle. Daily Stochastic has crossed below its slow stochastic line and is at 68.5, signaling the end of the short term up cycle triggered by the technical rebound, and the beginning of another down cycle.

Readings from the technical indicators on both the weekly and daily charts are pointing towards a bearish outlook, and hence, the FBM KLCI is likely to continue with its correction and consolidation process.

As the FBM KLCI is currently closing below its short, medium and long term MAs, the trend is down. Immediate overhead resistance zone is at 1,509 to 1,530, while the immediate downside support zone is at 1,489 to 1,474.

Last Friday, the Dow rebounded to gain +59.79 points or +0.50% to close at 12,044.40. This week, the FBM KLCI is likely to further consolidate and may trade within a range of 1,453 to 1,537, and for today it is likely to trade within a range of 1,475 to 1,515.

This week's expected range: 1453 – 1537
Today’s expected range: 1475 – 1515

Resistance: 1499, 1505, 1515
Support: 1475, 1484, 1490

FBM KLCI - pullback correction

Stocks on Bursa Malaysia ended easier yesterday with most indices slipping into negative territory in line with other regional markets. Investors were cautious as regional stock markets fell after surprisingly weak Chinese trade data hit them. The FBM KLCI fell 6.78 points or 0.45% to 1,516.91 after opening 0.84 point lower at 1,522.85. Losers led gainers by 483 to 253 while 280 counters were unchanged. Turnover decreased to 1.09 billion shares worth RM1.56 billion from 1.50 billion shares worth RM2.24 billion on Wednesday.

The FBM KLCI opened 0.84 point lower at 1,522.85 and rebounded to the intra-day high of 1,524.12 within the first five minute, and heavy profit-taking activities which surfaced pressed the key index lower to touch the intra-day low of 1,515.32 before some late buying of selected blue-chips lifted it to close off low at 1,516.91. Chart-wise, the FBM KLCI formed a bearish black candlestick which marked a reversal after the rebound on Wednesday, and the key index has again fallen below the neckline of the head-and-shoulder pattern. Moreover, the key index has also closed below the 5-day moving average as of yesterday. Hence, it is likely to further correct downward or consolidate.

MACD has continued to move higher, but its histogram has turned shorter, indicating a slow down in the short term upward momentum and a possible reversal ahead. As the MACD is still below the zero-line, the recent up move of the FBM KLCI could well be just part of a technical rebound, and may continue its downtrend if the up move could not be sustained. RSI (14) has again hooked downward to 50.5, back to the neutral zone. Stochastic is marginally higher at 81.8, and is turning flat, marking a possible turn of the short term up cycle. Readings from the indicators showed that the FBM KLCI is technically still weak, the short term uptrend may not be able to sustain, and hence may reverse downward.

The short term trend of the FBM KLCI has now turned sideways with a downward bias, the medium term trend is sideways while the long term trend is still up. Immediate overhead resistance zone is at 1,524 to 1,530, while the downside support zone is at 1,510 to 1,500.

Overnight, the Dow fell -228.48 points or -1.87% to close at 11,984.61. Today, the FBM KLCI is likely to trade within a range of 1,501 to 1,528.

This week's expected range: 1453 – 1584
Today’s expected range: 1501 – 1528

Resistance: 1519, 1522, 1528
Support: 1501, 1509, 1513

FBM KLCI - higher on improved sentiment

Stocks on Bursa Malaysia ended firmer yesterday as investors' interest stayed focused on sectors related to the Economic Transformation Programme (ETP) initiatives, primarily plantation and oil and gas. Market sentiment was positive following fresh positive corporate developments and upbeat outlook on the investments while the firmer Wall Street overnight provided an additional boost. The FBM KLCI rose 6.03 points or 0.40% to 1,523.69 after opening 1.52 points higher at 1,519.18. Gainers outpaced losers by 575 to 211 while 267 counters were unchanged. Turnover rose to 1.50 billion shares worth RM2.24 billion from 1.17 billion shares worth RM1.75 billion on Tuesday.

The FBM KLCI opened 1.52 points higher at 1,519.18 and traded higher on a gradual pace throughout the day to touch the intra-day high of 1,525.69 before late profit-taking activities caused it to close off high at 1,523.69. Chart-wise, the FBM KLCI formed a bullish white candlestick which indicates an attempt to breakout from the consolidation. The key index is now closing right above the neckline of the head-and-shoulder pattern and is re-testing the resistance zone of 1,520 to 1,528. If it can breakthrough this zone successfully, then it might rally towards the next target of 1,545.

MACD continued to climb higher, albeit below the zero-line, indicates a gradual gain in upward momentum. RSI (14) is higher at 54, and moving towards the mildly bullish zone. Stochastic is marginally higher at 81.1, entering the short term overbought zone and is tapering off, indicating a slow down in the upward strength. Readings from the indicators showed a gradual gain in the upward momentum and market strength of the FBM KLCI.

The short term trend of FBM KLCI has turned up, and its medium term trend is sideways as indicated by the medium term 60-day moving average which has basically turned flat, while the long term uptrend remained intact. Immediate overhead resistance zone is at 1,525 to 1,530, while the downside support zone is at 1,510 to 1,500.

Overnight, the Dow fell a marginal -1.29 points or -0.01% to close at 12,213.09. Today, the FBM KLCI is likely to be range-bound within a range of 1,513 to 1,532.

This week's expected range: 1453 – 1584
Today’s expected range: 1513 – 1532

Resistance: 1527, 1529, 1532
Support: 1513, 1516, 1520

FBM KLCI - in consolidation

Stocks on Bursa Malaysia rebounded yesterday on bargain hunting led by gains in selected finance stocks and blue-chips stocks. Regional stock markets were also higher as crude oil prices fell after embattled Libyan leader Muammar Gaddafi was believed to be looking for an agreement to step down. However, investor sentiment remained cautious on the back of a weaker overnight close on Wall Street. The FBM KLCI rose 1.92 points or 0.13% to close at 1,517.66 after opening 3.68 points higher at 1,519.42. Gainers outpaced losers by 529 to 223 while 259 counters were unchanged. Turnover rose to 1.17 billion shares worth RM1.75 billion from 714.797 million shares worth RM1.097 billion recorded on Monday.

The FBM KLCI opened 3.68 points higher and surged to the intra-day high of 1,525.01 within the first fifteen minutes. Heavy profit-taking activities immediately appeared which pressed the key index to the intra-day low of 1,515.17 before bargain-hunting activities lifted the key index to close off low. Chart-wise, the FBM KLCI formed a black spinning-top candlestick with a longer upper shadow which indicates indecision of market direction, and the longer upper shadow also showed that selling pressure at level above 1,520 was high. The FBM KLCI is still closing below the neckline of the head-and-shoulder pattern but is above the short term 5, 10 and 20-day moving averages (MA) and the long term 120-day MA. The key index is now in consolidation state, and is faced with the strong overhead resistance zone at 1,520 to 1,528. If it is able to breakout from this resistance zone, it will stage a rally towards the next higher target zone at 1,544 to 1,550.

MACD continued to climb higher, albeit still below the zero-line, indicates a gradual pick up in the upward momentum. RSI (14) has hooked up slightly to 51.2, and is still in the neutral zone. Stochastic has continued to climb higher to 80.5, indicating a continuous gain in strength. Readings from the indicators showed that the FBM KLCI is gradually turning positive in terms of market momentum.

The short term trend of the FBM KLCI has turned up; however, the price action yesterday showed that it is in range-bound consolidation, the medium term trend is sideways, while the long term trend remained up. Immediate overhead resistance zone is at 1,520 to 1,528, while the immediate downside support zone is at 1,510 to 1,500.

Overnight, the Dow rose +124.35 points or +1.03% to close at 12,214.38. Today, the FBM KLCI is likely to trade within a range of 1,503 to 1,535.

This week's expected range: 1453 – 1584
Today’s expected range: 1503 – 1535

Resistance: 1524, 1529, 1535
Support: 1503, 1509, 1513

FBM KLCI - pullback on profit-taking

Stocks on Bursa Malaysia ended lower yesterday as trading remained uninspiring with the ongoing conflict in oil-rich Libya continuing to rattle investors. The fall was also in line with regional markets and the weaker close on Wall Street last Friday. The FBM KLCI went down 6.87 points or 0.45% to close at 1,515.74 after opening 1.27 points lower at 1,521.34. Losers outpaced gainers by 583 to 185, while 243 counters were unchanged. Turnover decreased to 714.797 million shares worth RM1.097 billion from 1.13 billion shares worth RM1.9 billion last Friday.

The FBM KLCI opened 1.27 points lower at 1,521.34, and slid lower throughout the day to touch the intra-day low of 1,511.27 before a last minute buying of selected key heavyweights pushed the key index to close off low at 1,515.74. Chart-wise, the FBM KLCI formed a bearish black candlestick which confirmed the reversal signal issued by the shooting-star candlestick formed on Friday. The price action yesterday has covered the up gap formed on Friday and has brought the key index back below the neckline of the head-and-shoulder pattern, and hence the key index is likely to slide lower.

MACD has continued to move higher, but is still below the zero line, signifying the recent up move could be just a technical rebound. RSI (14) has hooked downward to 50.3, the neutral zone. Stochastic has continued to move higher to 75, indicating the short term upward strength is still intact. Mixed signals from the indicators showed that the FBM KLCI is currently in a rebound mode and is likely to further consolidate.

The short term trend of the FBM KLCI has turned up, however, this could well be just a technical rebound as the price action yesterday shows that there was no follow through buying after a strong up move but actually corrected. The medium term trend as indicated by the 60-day MA has turned sideways, whilst the long term trend is still up. Immediate overhead resistance zone is at 1,520 to 1,528, while the immediate downside support zone is at 1,510 to 1,500.

Overnight, the Dow fell -79.85 points or -0.66% to close at 12,090.03. Today, the FBM KLCI is likely to trade within a range of 1,500 to 1,531.

This week's expected range: 1453 – 1584
Today’s expected range: 1500 – 1531

Resistance: 1521, 1527, 1531
Support: 1500, 1506, 1510

FBM KLCI - likely to be range-bound with an upward bias

Stocks on Bursa Malaysia ended last Friday higher as institutions snapped up plantation and financial heavyweights. Gains in key regional markets, following the overnight advance on Wall Street, as well as the easing crude oil prices further lifted the market sentiment. Promising economic outlook in the US prompted institutions to buy selected heavyweights as they had been sidelined for a while due to the unrest in Middle East. The FBM KLCI rose by 15.73 points, or 1.04%, to close at 1,522.61. Week-on-week, it rose 33.34 points from 1,489.27 recorded the previous Friday. Turnover rose to 1.13 billion shares worth RM1.9 billion from 1.07 billion shares worth RM1.52 billion recorded on Thursday. However, weekly volume fell to 5.84 billion shares, valued at RM8.7 billion, from 8.58 billion shares, worth RM10.4 billion, recorded the previous week.

The FBM KLCI opened 4.13 points higher at 1,493.40 last Monday but plunged to the intra-week low of 1,474.38 and rebounded from there to close 1.98 points higher at 1,491.25. The key index continued its rebound on Tuesday to close at the day’s high of 1,502.24. Taking cue from the hefty fall on Wall Street overnight, the FBM KLCI closed at 1,499.28 on Wednesday, down 2.96 points after opening 8.64 points easier at 1,493.60. On Thursday, The FBM KLCI was up 7.60 points to close at 1,506.88 after opening 0.47 of a point lower at 1,498.81. And on Friday, the key index opened with an up gap of 12.4 points and rallied to the intra-week high of 1529.41 before retreating to close off high at 1,522.61 on profit-taking activities.

On the weekly chart, the FBM KLCI formed a bullish engulfing-like candlestick which indicates a strong fight back by the bulls after being pressed down by the bears for more than a month. It rebounded strongly after penetrating the 30-week moving average (MA) but halted at the 10-week MA. If the key index is able to clear the resistance posted by the 10-week MA convincingly, it may rallied to re-challenge the psychological resistance level at 1,550 and then the all time high level of 1,576.95.

On the daily chart, the FBM KLCI formed a shooting-star candlestick pattern last Friday after opening with a big up gap of 12.4 points. The long upper shadow of the shooting-star candlestick indicated heavy profit–taking activities by short term investors. The strong up move last Friday was met with the strong resistance posted by a 30, 50 and 60-day MA which all met at the same region of 1522 to 1528. The FBM KLCI will have to clear this immediate resistance zone in order for it to climb higher to reverse its current downtrend. The other point to note is that the key index has just closed above the neckline of the head-and-shoulder (H&S) pattern, and it will have to move higher in order to remove the threat of the H&S pattern.

Weekly MACD had continued to slide lower, but its histogram is turning shorter for the first time after a continuous slide for six weeks, indicating a slow down in the weekly downward momentum. On the contrary, daily MACD had made a golden cross over its daily signal line, issuing a short term buy signal. However, as the golden-cross occurred below the zero-line, one need to be cautious when taking position, as it might turn out to be just part of a technical rebound before continuing with its downward slide.

Weekly RSI (14) has reversed up to 57.3 from 51.1 the previous week and is still in the mildly bullish zone. Daily RSI (14) had crossed above the 50 level to 53.6 from 46.1 on Thursday, indicating the FBM KLCI is back to the mildly bullish zone from the mildly bearish zone. With this move, a continuation of the upward momentum is expected.

Weekly Stochastic has hooked up strongly for the first time after six weeks of continuous decline; nonetheless, it is still below its weekly slow stochastic line at the moment, a crossed above the weekly slow stochastic line would trigger an up cycle on the weekly chart. Daily Stochastic is at 65.7, and has continued to move higher, indicating a pick up in the upward momentum. Readings from the indicators showed that the FBM KLCI in gradually turning bullish, however, more data is required for confirmation.

With the strong up move last Friday, the FBM KLCI had break above the short term downtrend line, indicating a change of short term trend from down to up. As mentioned in previous analysis, the FBM KLCI is now coming to challenge the resistance zone at 1,528 to 1,530, if it can close above the 1,530 convincingly, it will trigger a rally towards the 1,550 level and then to re-challenge the all time high level of 1,576.95..

Last Friday, the Dow fell -88.32 points or -0.72% to close at 12,169.88. This week, the FBM KLCI is likely to be range-bound with an upward bias, and may trade within a range of 1,453 to 1,584, and for today it is likely to trade within a range of 1,507 to 1,539.

This week's expected range: 1453 – 1584
Today’s expected range: 1507 – 1539

Resistance: 1529, 1533, 1539
Support: 1507, 1513, 1518

FBM KLCI - reversed up to above 1,500

Stocks on Bursa Malaysia closed higher yesterday, supported by gains in banking and plantation heavyweights. However, investors are taking a cautious stance amid rising oil prices due to unrest in the Middle East as shown by the thin volume. The FBM KLCI was up 7.60 points or 0.5% to close at 1,506.88 after opening 0.47 of a point lower at 1,498.81. Advancers outpaced decliners by 503 to 252 and 307 counters ended flat. Turnover stood at 1.07 billion shares valued at RM1.52 billion, down from the 1.36 billion shares worth RM1.72 billion recorded on Wednesday.

The FBM KLCI opened 0.47 point lower at 1,498.81 but rallied to the intra-day high of 1,512.82 at late morning, and profit-taking activities which surfaced after that pressed the key index lower to close off high at 1,506.88. Chart-wise, the FBM KLCI formed a bullish white candlestick which is a confirmation to the reversal signal of the piercing-line candlestick formed on Wednesday; hence, the key index is likely to continue with its up move to re-test higher resistance levels. Having said so, the FBM KLCI will have to close above the neckline of the head-and-shoulder (H&S) pattern at 1,520 to overcome the threat of the H&S pattern, and above 1,528 to reverse the current downtrend.

MACD has continued to move higher, indicating a gradual reversal of the downward momentum. However, as it is still below its signal-line in the negative territory, the up move could be a technical rebound and may be short-lived. RSI (14) is at 46.1, and has reversed up to move higher into the mildly bearish zone, indicating a gradual pick of the market strength. Stochastic is higher at 49.2, indicating a continuation of the short term up cycle. Readings from the indicators showed that the FBM KLCI is gradually moving out of its very bearish condition to gradually turn bullish, and more data is required to confirm this.

The FBM KLCI has now closed above its short term 5 and 10-day moving averages (MA), but is still below its 20 and 30-day MAs. It is still below its medium term 60-day MA, nonetheless, it has closed above the long term 120-day MA. The situation shows that the FBM KLCI is trapped within the short to long term support and resistance zone, and to move higher, it has a lot of resistances to clear. Hence, the FBM KLCI is likely to be range-bound in the near term. Immediate overhead resistance zone is at 1,513 to 1,528, while the downside support zone is at 1,490 to 1,474.

Overnight, the Dow rose +191.40 points or +1.59% to close at 12,258.20. Today, the FBM KLCI is likely to trade within a range of 1,483 to 1,528.

This week's expected range: 1438 – 1540
Today’s expected range: 1483 – 1528

Resistance: 1514, 1521, 1528
Support: 1483, 1490, 1498

FBM KLCI - lower with good buying support

Stocks on Bursa Malaysia ended lower yesterday as profit-taking emerged as global markets slipped further amidst concerns over the Middle East turmoil. The key index managed to pare down some of its losses in the morning session but the broader market remained weak amid a continuous sell-off in key heavyweights. The FBM KLCI closed at 1,499.28, down 0.2% or 2.96 points after opening 8.64 points easier at 1,493.60. Decliners outnumbered advancers by 796 to 117 and 198 counters ended flat. Trading volume increased to 1.36 billion shares, worth RM1.72 billion, from Tuesday’s 1.12 billion shares valued at RM1.51 billion.

Taking cue from the hefty fall on Wall Street overnight, the FBM KLCI opened with a down gap of 8.64 points at 1,493.60 and plunged to the intra-day low of 1,488.95 within the first thirty minutes. The key index then rebounded on bargain-hunting to 1,496 level and was hovering there for major part of the day, some last minute buying in selected blue-chips helped push the key index to end at the day’s high. Chart-wise, the FBM KLCI formed a white piercing-line candlestick which indicates buying support for index-linked counters. The key index, however, is still closing below the psychological level of 1,500 and the long term 120-day moving average, which is bearish. The key index will have to move above the 1,530 level in the near term in order to reverse the current down trend.

MACD continued to move higher, but is still below its signal line in the negative zone, indicating the upward momentum is still weak, and the upturn could just well be a technical rebound. RSI (14) at 41.8 has hooked downward marginally, and is still in the bearish zone. Stochastic has climbed higher to 36.5, indicating a continuation in the short term upward strength. Readings from the indicators showed that the FBM KLCI is currently still bearish, and the recent up move could well be just a technical rebound which could be short-lived, and is likely to continue to consolidate.

The current trend of the FBM KLCI remained down. The key index will have to overcome the strong immediate overhead resistance zone at 1,500 to 1,528 to reverse the downtrend. Immediate downside support zone is at 1,490 to 1,474. Judging form the dwindling volume, the overall market may continue to consolidate, and if the key index is able to stabilize above the 1,500 level, this could be a good time to accumulate quality shares for longer term gain.

Overnight, the Dow rose +8.78 points or +0.07% to close at 12,066.80. Today, the FBM KLCI is likely to trade within a range of 1,482 to 1,510.

This week's expected range: 1438 – 1540
Today’s expected range: 1482 – 1510

Resistance: 1503, 1506, 1510
Support: 1482, 1485, 1492

FBM KLCI - back above 1,500

Stocks on Bursa Malaysia closed mixed yesterday with the benchmark FBM KLCI climbing back to the 1,500-point level. The bullish performance was due to continuous follow-through buying in index-linked heavyweights such as Genting, Axiata, Sime Darby and Maybank, following their recent losses. The key index rose 10.99 points or 0.74% to close at 1,502.24 after opening 3.63 points higher at 1,494.88. Decliners outnumbered advancers by 412 to 356 while 310 counters were unchanged. Volume was thin with 1.12 billion shares worth RM1.51 billion traded compared with 1.16 billion shares worth RM2.04 billion on Monday.

The FBM KLCI opened 3.63 points higher at 1,494.88 and traded to the intra-day low of 1,492.70 before buying interest came in to gradually push the key index higher with intermittent mild profit-taking to close at the day’s high of 1,502.24. Chart-wise, the FBM KLCI formed a bullish white candlestick which indicates buyers were in control for the day. This candlestick also confirmed the bottom reversal signal of the hammer candlestick formed on Monday. Even though the key index has now closed above the 1,500 point psychological level, but the current downtrend has not been reverse yet. It will have to continue to move higher to close above 1,530 to reverse the current trend.

MACD has turned upward slightly, but is still below the signal line, indicating the up move of the key index yesterday could just be a rebound. RSI (14) is higher at 43, and has continued to climb higher into the mildly bearish zone. Stochastic is at 23.2, and has also turned upward and crossed above the slow stochastic line, reflecting the rebound. Readings from the indicators showed that the FBM KLCI is currently still weak, and the gain yesterday could well be just a technical rebound which could be short lived.

With the up move yesterday, the FBM KLCI has closed right on the long term 120-day moving average (MA) and has crossed above the very short term 5-day MA. However, it is still below other short and medium term MAs, hence, there will be a lot of resistances to clear for the key index to re-gain its short term uptrend. Immediate overhead resistance zone is at 1,505 to 1,527 while the downside support zone is at 1,490 to 1,474.

Overnight, the Dow fell -168.32 points or -1.38% to close at 12,058.02. Today, the FBM KLCI is likely to trade within a range of 1,486 to 1,512.

This week's expected range: 1438 – 1540
Today’s expected range: 1486 – 1512

Resistance: 1505, 1509, 1512
Support: 1486, 1489, 1495

FBM KLCI - likely to rebound

Stocks on Bursa Malaysia ended weaker yesterday as investors were reluctant to take up new positions but the underlying benchmark FBM KLCI remained in positive territory, aided by interest in selected heavyweights. The key index closed 1.98 points or 0.13% higher at 1,491.25, after opening 4.13 points better at 1,493.40 in the morning. Decliners outnumbered advancers by 626 to 228 while 223 counters were unchanged. Total volume declined to 1.16 billion shares valued at RM2.04 billion, from the 1.39 billion shares worth RM1.79 billion, recorded on last Friday.

The FBM KLCI opened 4.13 points higher at 1,493.40 but plunged to the intra-day low of 1,474.38 within the first thirty five minutes, and rebounded from there to the intra-day high of 1,493.96 before late afternoon profit-taking pressed the key index to close off high in the positive territory. Chart-wise, the FBM KLCI formed a bullish hammer candlestick pattern which indicates initial sell down on fear but buying support later came in to lift the key index higher. The key index has now tested the critical support at 1,474 and rebounded, but the trend is still down. It will need to climb back at least to above the psychological level of 1,500 in order for the sentiment to turn better.

MACD continued to slide lower indicating the downward momentum is still dominant. RSI (14) has hooked up slightly to 36.7, but is still in the bearish zone. Stochastic continued to slide lower into the short term oversold zone at 9.4, and a rebound is likely to happen soon. Readings from the indicators showed that the FBM KLCI is still very weak; however, as the stochastic oscillator shows a deeply oversold condition, a rebound can happen anytime.

The FBM KLCI is currently on a downtrend as it is now below its short, medium and long term moving averages. Technically, in order to reverse the downtrend, it will need to climb above 1,530 in the near term, otherwise, the chances of visiting lower lows is still there. Cautious sentiment is expected to continue to rule in the near term, nonetheless, this could be a good time to accumulate quality shares with good earnings at lower price level.

Overnight, the Dow rose +95.89 points or +0.79% to close at 12,226.34. Today, the FBM KLCI is likely to trade within a range of 1459 to 1514.

This week's expected range: 1438 – 1540
Today’s expected range: 1459 – 1514

Resistance: 1499, 1506, 1514
Support: 1459, 1467, 1479