FBM KLCI - higher on gradual pace

Stocks on Bursa Malaysia ended mixed yesterday with the key benchmark index boosted by gains in selected heavyweights. The FBM KLCI ended 5.39 points or 0.35% higher at 1,535.30, extending its gains for the fourth consecutive day, after opening 2.45 points better at 1,532.36. Losers led gainers by 381 to 360 while 333 counters were unchanged. Turnover declined to 924.643 million shares, valued at RM1.400 billion, compared with 1.144 billion shares, worth RM1.431 billion, on Wednesday.

The FBM KLCI opened with an up gap of 2.45 points at 1,532.36 and surged to the morning session high of 1,534.45. The key index then moves sideways in a tight range for a major part of the day and touched the intra-day low of 1,531.11 at late afternoon before late buying of selected heavyweights pushed the benchmark index to close at the hay’s high of 1,535.30. Chart-wise, the FBM KLCI formed a bullish white candlestick which indicates buyers were in control of the day. The key index is now sitting right on the resistance level of 1,535, and is likely to continue its up move to test the next resistance level at 1,541.

MACD continued to move higher, and the histogram also turned shorter upward, indicating the key index’s momentum is gradually turning upward, albeit the MACD is still below the signal line. RSI (14) is higher at 54.3, indicating a pick up in the market strength. Stochastic is higher at 33.7, indicating the beginning of another short term up cycle. Readings from the indicators showed that the FBM KLCI is gradually moving out of its consolidation state and is gradually gaining strength.

The short term trend of the FBM KLCI is currently sideways, and it will have to close above the 1,565 level in order to turn uptrend. The medium term trend remained sideways, while the long term uptrend is still intact. Immediate overhead resistance zone is at 1,541 to 1,565, while the immediate downside support zone is at 1,530 to 1,520. The FBM KLCI is likely to continue its gradual upward climb, and the overall market is likely to remain mixed with second and third liners in rotational play.

Overnight, the Dow rose +72.35 or +0.57% to close at 12,763.31. Today, the FBM KLCI is likely to trade within a range of 1,525 to 1,543.

This week's expected range: 1493 – 1556
Today’s expected range: 1525 – 1543

Resistance: 1537, 1539, 1543
Support: 1525, 1529, 1532

Stocks to watch: MEGB, AIRASIA, PWORTH

FBM KLCI - higher on continued buying support of blue-chips

Stocks on Bursa Malaysia ended mixed yesterday with the benchmark barometer supported by buying in selected blue-chip counters. The FBM KLCI ended 2.57 points or 0.17% higher at 1,529.91 after opening 0.37 of a point better at 1,527.71. Losers led gainers by 320 to 454 while 309 counters were unchanged. Turnover rose to 1.144 billion shares, worth RM1.431 billion, compared with 1.044 billion shares, valued at RM1.269 billion, on Tuesday.

The FBM KLCI opened 0.37 point higher at 1,527.61 and surged to the intra-day high of 1,534.69 within the first thirty minutes of trading. The key index then hover around 1,533, and profit-taking activities which appeared in the afternoon session sent the index to the intra-day low of 1,526.58 before rebounding to close off low at 1,529.91, Chart-wise, the FBM KLCI formed an inverted hammer candlestick which indicates buyers were initially dominant but sellers later appeared to press down the key index to remain in the sideways range. Immediate resistance to the index’s up move is at 1,535, and the key index will have to break above this level to resume its short term uptrend.

MACD has turned upward slightly, and its histogram is also turning shorter upward, indicating a slow down in the downward momentum. RSI (14) is higher at 51.1, and is back to the bullish bias neutral zone, indicating the market strength is turning positive. Stochastic is at 25.1, and has crossed above its slow stochastic line, indicating a possible beginning of an up cycle. Readings from the indicators showed that the FBM KLCI is gradually turning positive in terms of its momentum and strength, and hence might continue to move higher.

The FBM KLCI is currently in a sideways consolidation mode with an upward bias. Its medium term trend remained sideways while the long term uptrend is still intact. Immediate overhead resistance zone is at 1,535 to 1,541, while the downside support zone is at 1,520 to 1,514.

Overnight, the Dow rose +95.59 or +0.76% to close at 12,690.96. Today, the FBM KLCI is likely to trade within a range of 1,517 to 1,543.

This week's expected range: 1493 – 1556
Today’s expected range: 1517 – 1543

Resistance: 1535, 1539, 1543
Support: 1517, 1522, 1526

FBM KLCI - higher amid mixed market

Stocks on Bursa Malaysia ended mixed yesterday with the benchmark barometer supported by selected blue-chip stocks. The market defied the bearish sentiment in play and ended on a positive note despite being in the minus territory in the predominant part of yesterday’s trading session. The FBM KLCI ended 3.29 points or 0.22% higher at 1,527.34 after opening at 1,525.72. Losers led gainers by 456 to 286 while 319 counters were unchanged. Turnover stood at 1.044 billion shares, valued at RM1.269 billion, compared with 1.043 billion shares, valued at RM1.026 billion on Monday.

The FBM KLCI opened 1.67 points higher at 1,525.72 and surged to the intra-day high of 1,527.56 within the first fifteen minutes. Profit-taking activities which appeared pushed the benchmark index down to the intra-day low of 1,520.49 before rebounding to stay off low in the negative territory for a major part of the day. A last hour buying of selected blue-chips helped pushed the key index to close near the high of the day. Chart-wise, the FBM KLCI formed a hammer candlestick which is a bottom reversal signal, and the benchmark index is likely to continue its upward move today. Immediate resistances to the up move is at 1,530, 1535, and 1,541, and the key index will have to close above 1,541 in order to breakout from the current sideways consolidation.

MACD continued to move lower, but is tapering off, and the histogram also turned shorter upward, indicating a slow down in the downward momentum. RSI (14) has hooked up to 49.6, moving towards the neutral zone. Stochastic has hooked up slightly to 20.1, which indicates the key index is still relatively weak in terms of the market strength. Readings from the indicators showed a consolidation mode of the FBM KLCI, but signs are there that the key index may reverse upward.

The short and medium term trend of the FBM KLCI are currently sideways, while the long term trend remained up. Immediate overhead resistance zone is at 1,530 to 1,541, while downside support zone is at 1,520 to 1,514. With the lukewarm volume, the overall market is likely to see rotational play on second and third liners, while the heavyweights are likely to continue with their consolidation.

Overnight, the Dow rose +115.49 or +0.93% to close at 12,595.37. Today, the FBM KLCI is likely to trade within a range of 1,515 to 1,535.

This week's expected range: 1493 – 1556
Today’s expected range: 1515 – 1535

Resistance: 1530, 1533, 1535
Support: 1515, 1518, 1522

FBM KLCI - marginally higher on technical rebound

Stocks on Bursa Malaysia closed mixed yesterday with the market barometer buoyed by gains from selected blue-chips. The FBM KLCI ended 1.3 points or 0.09% higher at 1,524.05 after opening at 1,523.46. Losers led gainers by 441 to 313 while 320 counters were unchanged. Turnover declined to 1.043 billion shares, valued at RM1.026 billion, from 1.157 billion shares, valued at RM1.173 billion, recorded last Friday.

The FBM KLCI opened 0.71 point higher at 1,523.46 and climb to the intra-day high of 1,526.83 within the first hour of trading before profit-taking activities pulled the key index to close off high at 1,524.05. Chart-wise, the FBM KLCI formed a white inverted hammer candlestick in Harami position, which indicates consolidation. The key index is currently trapped in a support and resistance zone formed of various moving averages (MA). It will have to break above the 1,537 resistance level posted by the 20-day MA in order to resume its short term uptrend.

MACD continued to slide lower, but the histogram has turned slightly shorter upward, indicating a reduction in the downward momentum and consolidation. RSI (14) has hooked up to 47.6, and is still in the bearish bias neutral zone. Stochastic is at 19.2, and has turned downward into the oversold zone, indicating weak market strength. Readings from the indicators showed that the FBM KLCI is currently weak and the consolidation is likely to prolong.

The short term trend of the FBM KLCI has turned sideways and so is the medium term trend. The long term uptrend, nonetheless, is still up. Immediate overhead resistance zone is at 1,527 to 1,537, while the downside support zone is at 1,519 to 1,514. Looking at the technical conditions, the FBM KLCI is likely to extend its consolidation, while the second and third liners may remain active in rotational play.

Overnight, the Dow fell -26.11 or -0.21% to close at 12,479.88. Today, the FBM KLCI is likely to trade within a range of 1,518 to 1,531.

This week's expected range: 1493 – 1556
Today’s expected range: 1518 – 1531

Resistance: 1527, 1529, 1531
Support: 1518, 1520, 1522

FBM KLCI - consolidation likely to continue

Stocks on Bursa Malaysia ended last week on an easier note on continuous sell-off, especially in finance and plantation counters on a holiday-hit trading day. The local bourse extended its downtrend, shadowing the easier sentiments in Asian bourses as major markets are closed for Good Friday celebrations, while investors remained sidelined amid absence of fresh leads and continued concerns on rising inflation in the region. The FBM KLCI fell 3.58 points or 0.23% to 1,522.75, after opening 0.80 point higher at 1,556.28. Week-on-week, the key index rose by 0.81 points or 0.1% from 1,521.94 the previous Friday. Losers led gainers by 349 to 364 while 329 counters were unchanged. Turnover declined to 1.157 billion shares valued at RM1.173 billion from 1.373 billion shares valued at RM1.536 billion on Thursday, while weekly volume increased to 5.873 billion shares worth RM7.408 billion from 5.613 billion shares valued at RM8.476 billion, the previous week.

The FBM KLCI was basically in consolidation mode last week. In response to the results of the Sarawak state election on the previous Saturday, the key index started the week on a positive note, it hit the intra-day high of 1,533.18 before pulling back on profit-taking to close 5.98 points higher at 1,527.92 on Monday. Taking cue from the heavy loss on Wall Street overnight, the FBM KLCI opened on Tuesday with a big down gap of 7.71 points at 1,520.21 and plunged to the intra-week low of 1,514.94 before rebounding to close at 1,521.53. The FBM KLCI rebounded strongly on Wednesday to close at the day’s high of 1,531.02. On Thursday, the FBM KLCI hit the intra-week high of 1,535.09 before profit-taking activities send the key index down into the negative territory and ended at the day’s low of 1,526.33. And on Friday, the benchmark index extended its loss to close the week at 1,522.75.

On the weekly chart, the FBM KLCI formed a black spinning-top candlestick which indicates indecision of market direction and consolidation. It rebounded off the 30-week moving average (MA) after hitting it on Tuesday. It is now closing below the 5-week MA but is above the 10 and 30-week MAs, indicating a range-bound situation. In order to continue with the uptrend, the FBM KLCI will have to close above the 1,535 level in the coming week. On the other hand, if the benchmark index breaks below the 30-week support at 1,514, it is likely to slide lower to re-test the critical lower support zone of 1,500 to 1,474.

On the daily chart, the FBM KLCI formed a bearish black Marubozu candlestick last Friday, which indicates sellers were dominant on that day, and the key index is likely to move lower to re-test the immediate support zone of 1,521 to 1,514.

Both weekly and daily MACD continued to slide lower, indicating a continuous loss of market momentum. Weekly RSI (14) is flat at 54.2 indicating the weekly market strength is in the neutral zone, while the daily RSI (14) slid lower to 46.8, indicating a loss in daily market strength and the key index is turning mildly bearish. Weekly stochastic has hooked downward and crossed below its weekly slow stochastic line, issuing a bearish signal which indicates a change in the weekly cycle from up to down. On the contrary, daily stochastic has just crossed above its daily slow stochastic line, indicating a possible beginning of the up cycle. Readings from the indicators showed a relatively weak technical condition of the FBM KLCI, and hence, the benchmark index is likely to continue to consolidate with a downward bias in the coming week.

The short term trend of the FBM KLCI has turned sideways or range-bound. The medium term trend as indicated by the 60-day MA which is flat is also in the sideways. Nevertheless, the long term uptrend is still intact. Immediate overhead resistance zone is at 1,528 to 1,541, while the immediate downside support zone is at 1,521 to 1,514. A break below the critical 1,514 level is likely to see the FBM KLCI sliding further southward to test the psychological support of 1,500.

Wall Street was closed last Friday for Good Friday celebration. This week, the FBM KLCI is likely to be range-bound within a range of 1,493 to 1,556, and for today it is likely to trade within a range of 1,514 to 1,533.

This week's expected range: 1493 – 1556
Today’s expected range: 1514 – 1533

Resistance: 1526, 1529, 1533
Support: 1514, 1519, 1521

FBM KLCI - down on profit-taking

Stocks on Bursa Malaysia closed mixed yesterday on mild foreign selling prompted by weak external economic indicators which stoked investors' worries over a possible economic slowdown. The FBM KLCI ended below the 1,530 level at 1,526.33, down 4.69 points or 0.31%, after opening 2.18 points higher at 1,533.20. Gainers led losers by 452 to 354 while 285 counters were unchanged. Turnover increased to 1.373 billion shares, valued at RM1.536 billion, from 1.271 billion shares worth RM1.810 billion registered on Wednesday.

The FBM KLCI opened with an up gap of 2.18 points and surged to the intra-day high of 1,535.09 within the first fifteen minutes. Profit-taking activities which appeared immediately pressed the key index down into the negative territory and ended at the day’s low of 1,526.33. Chart-wise, the FBM KLCI formed a dark-cloud-cover candlestick pattern which is a reversal pattern and indicates heavy profit-taking after a strong rise the day before. Following this price action, the FBM KLCI is likely to further consolidate itself.

MACD continued to slide lower while the histogram is almost flat, indicating a continued loss in the momentum. RSI (14) has again hooked downward to 48.6 and is back to the bearish bias neutral zone. Stochastic is flat at 22.7 and had just crossed-over its slow stochastic line, indicating weak market strength. Readings from the indicators showed a relatively weak condition of the FBM KLCI, and hence, the key index is likely to further consolidate itself.

The short term trend of the FBM KLCI is now sideways, as the key index is closing above the 5-day moving average (MA) but is below the 10 and 20-day MA. The medium term trend as indicated by the 60-day MA which is flat remained sideways, while the long term uptrend is still intact. Immediate overhead resistance zone is at 1,535 to 1,541, while the immediate downside support zone is at 1,525 to 1,517.

Overnight, the Dow rose another +52.45 points or +0.42% to close at 12,505.99. Today, the FBM KLCI is likely to trade within a range of 1,514 to 1,544.

This week's expected range: 1464 – 1576
Today’s expected range: 1514 – 1544

Resistance: 1533, 1538, 1544
Support: 1514, 1520, 1523

FBM KLCI - reversing up

Stocks on Bursa Malaysia ended broadly higher yesterday led by blue-chip counters. Better performance in the regional markets and commodity prices also improved market sentiment, sparking continued buying interest in finance, plantation and properties counters on the local bourse. The FBM KLCI ended 9.49 points or 0.62% higher at 1,531.02, after opening 4.37 points better at 1,525.9. Gainers outpaced losers by 473 to 288 while 333 counters were unchanged. Turnover rose to 1.271 billion shares worth RM1.810 billion from 1.040 billion shares worth RM1.393 billion registered on Tuesday.

The FBM KLCI opened with an up gap of 4.37 points at 1,525.90 and surged to the morning session high of 1,530.16. Profit-taking activities caused a pulled-back of the key index, but it was staying in the positive territory throughout the day before a last minute buying of selected blue-chips pushed the index to close at the hay’s high of 1,531.02. Chart-wise, the FBM KLCI formed a bullish Marubozu candlestick which indicates buyers were in full control of the day. The Marubozu candlestick also confirmed the reversal signal generated by the Hammer candlestick formed on Tuesday, and the FBM KLCI is expected to continue moving higher today to challenge the next level of resistance at 1,541. The key index has to move above this level in order to reverse the current short term downtrend.

MACD continued to slide lower but is tapering off, as shown by the shorter histogram which indicates a slow down in the downward momentum. RSI (14) has hooked up to 51, moving back to the bullish bias neutral zone. Stochastic has reversed up to 22.3 from the oversold zone, and is just below the slow stochastic line, a cross above the slow stochastic would trigger an up cycle in the stochastic. Readings from the indicators showed that the FBM KLCI is bottoming out of its recent correction, and is likely to move higher.

The FBM KLCI has now closed above the 5-day moving average (MA) but is still below the 10 and 20-day MAs that converge at 1,535, if the key index is able to move above this level, it is likely to rally to retest the resistance level at 1,541. The medium term trend as indicated by the 60-day MA continued to remain sideways, while the long term uptrend is still intact. Immediate overhead resistance zone is at 1,535 to 1,541 while the immediate downside support zone is at 1,525 to 1,515.

Overnight, the Dow rose +186.79 points or +1.52% to close at 12,453.54. Today, the FBM KLCI is likely to trade within a range of 1,522 to 1,540.

This week's expected range: 1464 – 1576
Today’s expected range: 1522 – 1540

Resistance: 1533, 1536, 1540
Support: 1522, 1524, 1527

FBM KLCI - formation of a Hammer candlestick pattern

Stocks on Bursa Malaysia ended mostly lower yesterday amid weak market sentiment on bearish external outlook. A downgrade on the US debt outlook by Standard & Poor’s dragged down major stock markets while worries over the Euro debt crisis spurred a sell-off in global stocks. The FBM KLCI eased 6.39 points or 0.42% to close at 1,521.53 after opening 7.71 points lower at 1,520.21. Decliners outpaced advancers by 455 to 295 while 294 were unchanged. Volume rose to 1.040 billion shares worth RM1.393 billion from 1.032 billion shares worth RM1.496 billion registered on Monday.

Taking cue from the heavy loss on Wall Street overnight, the FBM KLCI opened with a down gap of 7.71 points at 1,520.21 and plunged to the intra-day low of 1,514.94 within the first hour of trade. The key index rebounded gradually on bargain-hunting to touch the intra-day high of 1,522.72 before retracing to close off high at 1,521.53. Chart-wise, the FBM KLCI formed a hammer candlestick which is a bottom reversal pattern, and it indicates seller were initially dominant in pushing down the share prices but buyers later surfaced to reverse the initial downtrend. The key index has now tested the support at 1,517 provided by the 120-day moving average (MA) and rebounded off it. However, the FBM KLCI will have to close above the 1,541 level in order to reverse the current downtrend.

MACD continued to slide lower, indicating a continuous loss in market momentum and possible further consolidation. Nonetheless, the MACD line is still above the zero-line, indicating the current weakness could be just a short term correction. RSI (14) is lower at 46, indicating the key index is turning more bearish. Stochastic is at 16.6 and has slid lower into the short term oversold zone, and a rebound can be expected soon. Readings from the indicators showed a weak FBM KLCI, technically, and it is expected to continue with its current consolidation.

The short term trend of the FBM KLCI remained down, while the medium term trend is sideways, and the long term uptrend is still intact. Immediate overhead resistance zone is at 1,524 to 1,541, while the immediate downside support zone is at 1,517 to 1,514.

Overnight, the Dow rebounded +65.16 points or +0.53% to close at 12,266.75. Today, the FBM KLCI is likely to trade within a range of 1,508 to 1,531.

This week's expected range: 1464 – 1576
Today’s expected range: 1508 – 1531

Resistance: 1525, 1528, 1531
Support: 1508, 1511, 1516

FBM KLCI - higher on technical rebound

Stocks on Bursa Malaysia rebounded yesterday to end better despite a lukewarm regional market. While further gains was capped by profit-taking in plantation-related stocks, the benchmark FBM KLCI rose 5.98 points or 0.39% to close at 1,527.92, after opening 4.09 points better at 1,526.03. Gainers outpaced losers by 446 to 277 while 286 counters were unchanged. Turnover rose to 1.032 billion shares worth RM1.496 billion from 915.038 million shares valued at RM1.565 billion last Friday.

In response to the results of the Sarawak state election, the FBM KLCI opened with an up gap of 4.09 points and surged to the intra-day high of 1,533.18 within the first ninety minutes of trade, making a gain of 11.24 points at its best. The key index then pulled back on profit-taking but remained in the positive territory throughout the day. Chart-wise, the FBM KLCI formed an inverted hammer candlestick which indicates buyers were initially very strong in pushing the index, but sellers later surfaced to sell down for quick gains. With this candle formation, the FBM KLCI is likely to remain range-bound today.

MACD continued to slide lower, albeit still above the zero line, indicates a continued loss in the upward momentum and a state of consolidation. RSI (14) has hooked up to 49.2, but is still below the 50 level, indicating the key index is in the neutral zone with a bearish bias. Stochastic continued to slide lower to 21.1, indicating a continuation of the short term down cycle and very weak market strength. Readings from the indicators showed that the FBM KLCI is in a consolidation mode with a downward bias.

The short term trend of the FBM KLCI remained down, as it is closing below the short term 5, 10 and 20-day moving averages (MA). The medium term trend remained sideways while the long term uptrend is still intact. Immediate overhead resistance zone is at 1,533 to 1,541, while the immediate downside support zone is at 1,523 to 1,517. The support at 1,517 is especially critical, as a break below this level will likely see the key index sliding lower towards the 1,510 to 1,500 zone.

Overnight, the Dow fell -140.24 points or -1.14% to close at 12,201.59. Today, the FBM KLCI is likely to trade within a range of 1,515 to 1,542.

This week's expected range: 1464 – 1576
Today’s expected range: 1515 – 1542

Resistance: 1533, 1538, 1542
Support: 1515, 1519, 1523

FBM KLCI - likely to be range-bound

Stocks on Bursa Malaysia ended lower last Friday in line with its regional peers, underpinned by concerns over faltering growth and inflation. Continued selling prompted by weak external economic indicators stoked investors' worries over a possible economic slowdown. On the local front, the outcome of the Sarawak state election had kept investors at bay. The FBM KLCI ended the week at 1,521.94, down 3.86 points or 0.25%, after opening 3.79 points higher at 1,529.59. Week-on-week, it dropped 35.55 points or 2.3% from 1,557.49 the previous Friday. Losers led gainers by 452 to 285 while 316 counters were unchanged. Daily turnover declined to 915.038 million shares, valued at RM1.565 billion, from 965.837 million shares, worth RM1.532 billion, registered on Thursday. Weekly volume fell to 5.613 billion shares valued at RM8.476 billion from 8.110 billion shares, worth RM10.675 billion the previous week.

The FBM KLCI was basically in correction mode the whole of last week. It opened 2.18 points higher at the day’s high of 1,559.67 on last Monday and this level turned out to be week’s high as well and the key index was subjected to continuous selling pressure throughout the day to end 13.49 points lower at1,544.00. Selling pressure on blue-chip stocks continued on Tuesday, and the FBM KLCI lost another 18.08 points to 1,525.92. The key index rebounded on Wednesday on bargain-hunting, recouping 9.67 points to close at 1,535.59. On Thursday, the FBM KLCI ended lower on bearish sentiments due to regional discounts to finish 9.79 points at 1,525.80, and on Friday, the key index continued to slide lower ahead of the Sarawak state election to close at 1,521.94 after hitting the intra-week low of 1,517.68.

On the weekly chart, the FBM KLCI formed a bearish long black candlestick which confirmed the reversal signal issued by the black hangman candlestick formed the previous week. With this price action, the FBM KLCI pulled back to its weekly support zone of 1,517 to 1,511 provided by the 10 and 30-week moving averages (MA). The support level at 1,511 is particularly important, as a break below this level will likely see the key index sliding further downward to the 1,500 to 1,474 zone.

On the daily chart, the FBM KLCI formed another bearish black candlestick which indicates continuous selling pressure experienced by the key index. The FBM KLCI, however, again rebounded off the 120-day MA when it hit the intra-day low of 1,517.68, and this credence to the support provided by the 120-day MA. If this support level is broken in the coming week, the key index will likely to move further southward to test the support zone at 1,510 to 1,500.

Weekly MACD had again hooked downward after rising for two weeks, indicating a weakening of the weekly momentum. Daily MACD continued to slide lower, indicating a continuous loss of daily momentum; nevertheless, the MACD line is still above the zero line, which indicates the key index is experiencing a short term correction.

Weekly RSI (14) fell to 54 from 62.1 the previous week, indicating the weekly market strength has turned neutral. Daily RSI (14) has continued to slide lower to 45.9, indicating the key index has turned bearish for the short term.

Weekly Stochastic continued to move higher, but is tapering off, indicating a slow down in the upward strength, which may forewarn of a possible reversal of the up cycle. Daily Stochastic, however, has continued to move lower to 28.8, indicating a continuation of the daily down cycle and weakening of the market strength. Readings from both the weekly and daily indicators showed that the FBM KLCI is currently undergoing a consolidation process with a downward bias.

The short term trend of the FBM KLCI is currently down as the key index is closing below the 5, 10 and 20-day MAs. The medium term trend remained sideways as indicated by the 60-day MA which is flat, while the long term trend remained up. Immediate overhead resistance zone is at 1,530 to 1,541, while the immediate support zone is at 1,517 to 1,510.

Last Friday, the Dow rose +56.68 points or +0.46% to close at 12,341.83. This week, the FBM KLCI is likely to be range-bound within a range of 1,464 to 1,576, and for today it is likely to trade within a range of 1,501 to 1,547.

This week's expected range: 1464 – 1576
Today’s expected range: 1501 – 1547

Resistance: 1531, 1539, 1547
Support: 1501, 1509, 1515

FBM KLCI - lower on bearish sentiment

Stocks on Bursa Malaysia ended broadly lower yesterday on bearish sentiments due to regional discounts, among the influencing factors were a drastic downgrading of US second quarter GDP growth, inflation and issues pertaining to the Japan quake. Uncertainties over the upcoming Sarawak election had also put the market on the edge. The FBM KLCI fell 9.79 points or 0.64% to close at 1,525.80 after opening 2.26 points better at 1,537.85. Losers led gainers by 651 to 174 while 251 counters were unchanged. Turnover fell to 965.837 million shares worth RM1.532 billion from Wednesday’s 1.174 billion shares worth RM1.672 billion.

The FBM KLCI opened 2.26 points higher at 1,537.85 and surged to the intra-day high of 1,540.55 within the first five minutes, but profit-taking activities which surfaced immediately pressed the key index lower for the rest of the day with intermittent mild rebound to end the day at the lowest point of 1,525.80. Chart-wise, the FBM KLCI formed a bearish dark-cloud-cover candlestick pattern, which is a reversal signal, and actually reflects the pull-back after a strong rebound on Wednesday. The key index is now closing right above the immediate support zone of 1,523 to 1,517 provided by a cluster of moving averages (MA). The support at 1,517 provided by the 120-day MA is critical, as a close below this level is likely to see the FBM KLCI sliding further southward to the psychological support level of 1,500.

MACD continued to slide lower after making a dead-cross, signifying a continued increase in downward momentum. RSI (14) has again fell below the 50-level to 47.8, indicating a mildly bearish condition of the key index. Stochastic continued to slide lower to 33, indicating a continuation of the down cycle and the weakening of market strength. Readings from the indicators indicate a bearish outlook for the FBM KLCI, and it is likely to continue with its current correction mode to further consolidate.

The short term trend of the FBM KLCI is currently down, and the medium term trend remained sideways, while the long term uptrend is still intact. Immediate support zone is at 1,523 to 1,517 provided by a cluster of MAs, while the overhead resistance zone is at 1,530 to 1,540.

Overnight, the Dow rose another +14.16 points or +0.12% to close at 12,285.15. Today, the FBM KLCI is likely to trade within a range of 1,506 to 1,556.

This week's expected range: 1500 – 1581
Today’s expected range: 1506 – 1556

Resistance: 1536, 1546, 1556
Support: 1506, 1516, 1520

FBM KLCI - a strong rebound

Stocks on Bursa Malaysia recoup two consecutive days of losses yesterday on bargain-hunting led by finance stocks and blue-chips such as PCHEM and BAT, and closed higher with the benchmark FBM KLCI finishing 9.67 points or 0.63% higher at 1,535.59 after opening 1.11 points easier at 1,524.81. Advancers outnumbered decliners by 610 to 204 with 265 counters unchanged. Advancers outnumbered decliners 610 to 204 with 265 counters unchanged. Turnover was higher at 1.174 billion shares worth RM1.672 billion from the 1.088 billion shares worth RM1.528 billion registered on Tuesday.

Taking cue from the weak performance of Wall Street overnight, the FBM KLCI opened 1.11 points lower at 1,524.81 and plunged to the intra-day low of 1,517.84 in first half of the morning session, and it rebounded strongly on bargain-hunting of selected blue-chips and rally to the intra-day high of 1,539.70 before pulling back on profit-taking to close off high at 1,535.59. Chart-wise, the FBM KLCI formed a bullish piercing-line candlestick which is a bottom reversal candle pattern. With the strong momentum, the key index is likely to continue its upward move today. The index will likely to meet strong resistance at 1,540 to 1,550 areas.

MACD continued to slide lower and has just made a dead-crossed over its signal line, which is a sell signal, and indicates correction to the uptrend as MACD line is still in the positive zone. RSI (14) has hooked up to 52.6, and is back to the bullish neutral zone. Stochastic continued to move lower to 46.7, indicating a continuation of the down cycle and weakening of the market strength. Mixed signals from the indicators showed that the FBM KLCI is likely to go into a sideways consolidation with a downward bias.

The FBM KLCI found strong support from the 120-day moving average (MA) when it rebounded off it and triggered a rally. The immediate support zone at 1,523 to 1,517 formed of a cluster of medium to long term MAs is critical, as a break below the 1,517 level will see the key index slides toward the 1,500 level. The short term trend of the FBM KLCI is currently down, while the medium term trend remained sideways, and the long term trend is still up.

Overnight, the Dow rose +7.41 points or +0.06% to close at 12,270.99. Today, the FBM KLCI is likely to trade within a range of 1,500 to 1,562.

This week's expected range: 1500 – 1581
Today’s expected range: 1500 – 1562

Resistance: 1545, 1553, 1565
Support: 1500, 1509, 1522

FBM KLCI - continued moving southward

Stocks on Bursa Malaysia ended lower yesterday, dragged down by weak sentiment in regional markets. The FBM KLCI fell 18.08 points to 1,525.92, after opening 4.54 points lower at 1,539.46. Decliners thumped advancers by 682 to 166 while 243 counters ended flat. Total market turnover decreased to 1.088 billion shares worth RM1.528 billion from 1.470 billion shares valued at RM2.179 billion on Monday.

The FBM KLCI opened with a down gap of 4.54 points at 1,539.46 and slid lower throughout the day to hit the intra-day low of 1,522.15, losing 21.85 points at its worst, before last minute buying of selected blue-chips lifted the key index to close off low at 1,525.92. Chart-wise, the FBM KLCI formed another long black candlestick which indicates heavy selling pressure on index-linked stocks. The key index has broken its critical support at 1,529 which happen to be the 38.2% Fibonacci retracement (FR) level, and hence may continue to slide lower to test the support of 50% FR level at 1,519. The support zone at 1,521 to 1,517 is critical, as it is made up of the 30 and 120-day moving averages, if this support zone is penetrated the FBM KLCI is likely to slide lower to the 61.8% FR level at 1,508.

MACD continued to slide lower indicating a continuous loss of momentum. Nonetheless, the MACD line is still above its signal line. RSI (14) has fell lower to 47.8, indicating the FBM KLCI has turned bearish for the short term. Stochastic plunged lower to 61.3, indicating a continuation of the down cycle and the picking up of downward momentum. Readings from the indicators showed a bearish picture of the FBM KLCI, and hence it is likely to further correct downward.

The short term trend of the FBM KLCI has turned southward, while the medium term trend remained sideways, and the long term trend, however, is still up. Immediate critical support zone is at 1,521 to 1,517 provided by the 30 and 120-day MAs, while the overhead resistance zone is at 1,530 to 1,540.

Overnight, the Dow fell -117.53 points or -0.95% to close at 12,263.58. Today, the FBM KLCI is likely to trade within a range of 1,501 to 1,557.

This week's expected range: 1500 – 1581
Today’s expected range: 1501 – 1557

Resistance: 1537, 1547, 1557
Support: 1501, 1511, 1518

FBM KLCI - lower on heavy profit-taking

Stocks on Bursa Malaysia ended on a bearish note yesterday on profit-taking on blue-chips. The FBM KLCI slumped 13.49 points to 1,544.0, after opening 2.18 points higher at 1,559.67. Decliners led advancers by 724 to 179 while 229 counters were unchanged. Volume decreased to 1.470 billion shares valued at RM2.179 billion from 1.669 billion shares valued at RM2.119 billion last Friday.

The FBM KLCI opened 2.18 points higher at its day’s high of 1,559.67 and stayed in the positive territory for only a brief fifteen minutes. It then moved all the way south on persistent selling pressure to hit the intra-day low of 1,540.67, losing 16.82 points at its worst, before some last minute bargain-hunting activities lifted the key index to close off low at 1,544.00. Chart-wise, the FBM KLCI formed a bearish long black candlestick which confirmed the top-reversal signal issued by the dark-cloud-cover candle pattern formed last Friday. With this price action, the three weeks rally which started on the 17th March has finally came to an end, and the FBM KLCI will take a breather to consolidate itself. Hence, more downward moves are expected in the near term.

MACD has turned downward for the first time after rising continuously for the past three weeks, and its histogram turned shorter rapidly, indicating a change in the momentum direction from up to down. Nonetheless, the MACD line is still above its signal line, and hence, this could be just a short term correction. RSI (14) fell rapidly to 58.1 from 68.4, bringing the FBM KLCI into the mildly bullish zone. Stochastic is lower at 83, reflecting the correction of the key index. Nonetheless, it is still above the 80 level, and hence, the downward move could be just a temporary correction. Readings from the indicators showed that the FBM KLCI is taking a pause from its upward move, and may goes into a consolidation phase.

The FBM KLCI has closed below the 5 and 10-day moving averages (MA), and hence is likely to continue moving lower in the near term. However, it is still above its 20 and 30-day MAs which still point northeast, which may lend support to the key index when it falls. The next critical support level to watch is 1,529, if this level could not hold, then the FBM KLCI will again turn bearish. The medium term trend remained sideways, while the long term uptrend is still intact. Immediate downside support zone is now at 1,540 to 1,529 while the overhead resistance zone is at 1,550 to 1,577.

Overnight, the Dow rose a marginal +1.06 points or +0.01% to close at 12,381.11. Today, the FBM KLCI is likely to trade within a range of 1,517 to 1,579.

This week's expected range: 1534 – 1581
Today’s expected range: 1517 – 1579

Resistance: 1556, 1568, 1579
Support: 1517, 1529, 1537

FBM KLCI - likely to consolidate

Stocks on Bursa Malaysia closed lower last Friday on some profit-taking given the weaker overnight close in the US market. The FBM KLCI fell 4.44 points or 0.28% to 1,557.49 after opening 0.27 point lower at 1,561.66. Week-on-week, the benchmark index gained 2.11 points from previous Friday’s close of 1,555.38. Gainers led losers by 418 to 405 while 321 counters were flat. Turnover increased to 1.669 billion shares worth RM2.119 billion from Thursday’s 1.575 billion shares worth RM2.283 billion. Weekly volume fell to 8.110 billion shares, worth RM10.675 billion, from last week’s 8.841 billion shares, valued at RM11.383 billion.

The FBM KLCI opened last Monday with an up gap of 6.56 points at 1,561.94 and surged to the intra-week high of 1,565.04. Profit-taking activities eroded the gains and the key index closed 0.10 of a point to 1,555.48. Profit-taking activities continued to rule on Tuesday and Wednesday which saw the FBM KLCI fell to the intra-week low of 1,549.84 before rebounding on Thursday to close at 1,561.93, and on Friday the key index continued to face some profit-taking activities to end the week at 1,557.49.

On the weekly chart, the FBM KLCI formed a black hanging-man candlestick which indicates the surfacing of selling pressure at this level, and it is also a top reversal pattern. Hence, the FBM KLCI is likely to consolidate this week. On the daily chart, the FBM KLCI formed a dark-cloud-cover candlestick pattern which indicates heavy profit-taking activities on last Friday, and hence, the benchmark index is likely to continue with its downward move today, and may pull back to the 1,550 to 1,544 support zone area.

Weekly MACD continued to climb higher, but its histogram also turned shorter upward, indicating an improved in the weekly upward momentum of the FBM KLCI. Daily MACD also continued to climb higher, however, its daily histogram is turning shorter, indicating a slow down in the daily upward momentum, and hence, the benchmark index may take a breather.

Weekly RSI (14) is higher at 62.1, but is tapering off, indicating a slow down in the weekly upward strength but is still bullish. Daily RSI (14) pulled back to 68.4 after touching 72.3 on Thursday, and is back into the bullish zone after testing the very bullish or overbought zone.

Weekly Stochastic continued to climb higher to 66.7 from 49.2 the previous week, indicating a gain in market strength and a continuation of the up cycle. Daily Stochastic is marginally higher, but is still below its daily slow stochastic line, reflecting the pulled back on Friday. Readings from the indicators showed that the FBM KLCI is turning bullish on the weekly chart. However, signals from the daily indicators showed that the FBM KLCI may goes into a consolidation after the recent strong upward move.

The FBM KLCI has turned sideways for the immediate short term as it was moving within a range of 1,565 to 1,549 over the last five days. Its short term trend as indicated by the 10 and 20-day moving averages (MA) remained up, while the medium term trend is still sideways, as the 30-day MA is still below the 60-day MA which is flat. The long term uptrend, however, is intact. Immediate strong overhead resistance zone is at 1,565 to 1,577, while the immediate downside support zone is at 1,550 to 1,544.

This week, the FBM KLCI is likely to move into consolidation ahead of the Sarawak state election which will be held on this coming Saturday, 16-April. On top of that, there are still external uncertainties, such as the rising oil prices, the fighting in the Middle East and the debt problems in Euro-zone clouding the marketplace. Last Friday, the Dow fell -29.44 points or -0.24% to close at 12,380.05. This week, the FBM KLCI is likely to trade within a range of 1,534 to 1,581, and for today it is likely to trade within a range of 1,549 to 1,570.

This week's expected range: 1534 – 1581
Today’s expected range: 1549 – 1570

Resistance: 1562, 1566, 1570
Support: 1549, 1553, 1555

FBM KLCI - reversed up

Stocks on Bursa Malaysia closed higher yesterday, boosted by persistent buying in selected blue chips. The market started the day on a positive note as investors took the cue from overnight gains on Wall Street, and positive corporate developments also spurred buying interest in the local market. The FBM KLCI rose 9.04 points or 0.58% to 1,561.93 after opening 3.94 points higher at 1,556.83. Gainers led losers by 441 to 352 while 323 counters were unchanged. Turnover was marginally higher at 1.575 billion shares worth RM2.283 billion from Wednesday’s 1.572 billion shares worth RM2.066 billion.

The FBM KLCI opened with an up gap of 3.94 points at 1,556.83 and slid to the intra-day low of 1,554.60 within the first five minutes on profit-taking. The index rebounded immediately and was ranging from 1,556 to 1,558 for most part of the day before staging a breakout in the last half an hour to close at the day’s high of 1,561.93. Chart-wise, the FBM KLCI formed a bullish white candlestick which indicates buyers were in control, and it also confirmed the reversal signal issued by the Doji candle with long lower shadow formed on Wednesday. Hence, the FBM KLCI is likely to continue its upward move to test the higher resistance zone of 1,565 to 1,577.

MACD continued to move higher, whereas its histogram continued to turn shorter, which indicates weakening of the upward momentum. RSI (14) is higher at 72.3, and has moved into the very bullish zone, which indicates the key index is regaining its strength. Stochastic has hooked up to 88, but is still below its slow stochastic line. Readings from the indicators showed that the recent correction of the FBM KLCI is possibly over, and is regaining its upward strength.

With the up move yesterday, the FBM KLCI has reversed its correction and resumed its short term uptrend. The medium term trend remained sideways while the long term uptrend is still intact. The FBM KLCI is likely to challenge its immediate resistance zone of 1,565 to 1,577 soon, and its immediate downside support zone is at 1,550 to 1,544. With the current volume of around 1.5 billion shares, the overall market is expected to remain active with rotational play on second and third liners.

Overnight, the Dow fell -17.26 points or -0.14% to close at 12,409.49. Today, the FBM KLCI is likely to trade within a range of 1,549 to 1,570.

This week's expected range: 1483 – 1599
Today’s expected range: 1549 – 1570

Resistance: 1565, 1567, 1570
Support: 1549, 1552, 1557

Stocks to watch: PETRA, MEGB, JCY, ECS, UNISEM

FBM KLCI - marginally lower and likely to rebound

Stocks on Bursa Malaysia closed mixed yesterday on mild profit-taking in selected blue chips. The FBM KLCI shed 0.18 of a point to 1,552.89 after opening flat at 1,553.07. Gainers led losers by 490 to 310 while 325 counters were unchanged. Turnover declined to 1.572 billion shares worth RM2.066 billion compared with 1.600 billion shares valued at RM1.970 billion on Tuesday.

The FBM KLCI opened flat at 1,553.07 and surged to the intra-day high of 1,553.90 within the first fifteen minutes. Profit-taking activities which surfaced pressed the key index to the intra-day low of 1,549.84, and the index hovers in the negative territory throughout the day before last minute buying of selected blue-chips lift it to close off low. Chart-wise, the FBM KLCI formed a Doji candlestick which indicates indecision of the index to move lower, and its longer lower shadow also showed buying support. Hence, the FBM KLCI is likely to rebound today.

MACD continued to climb higher, but its histogram is shorter for a second day, indicating a loss in the upward momentum. RSI (14) is marginally lower at 68.9, reflecting the mild correction of the key index, and nevertheless, it is still in the bullish zone. Stochastic oscillator is lower at 86.3 after crossing over its slow stochastic line, reflecting the pullback correction of the FBM KLCI. Signals from the indicators showed that the FBM KLCI is currently undergoing a mild pullback correction after the recent run-up, and the key index is expected to resume its upward move after the correction is over.

The FBM KLCI is undergoing a short term mild pullback correction which has not spoil the short term uptrend, and the key index is likely to re-test its recent high of 1,565 follow by the historical high of 1,577 once the correction is over. The medium term trend remained sideways, while the long term uptrend remained intact. Immediate overhead resistance zone is at 1,557 to 1,577, while the immediate downside support zone is at 1,550 to 1,544. The overall market is likely to remain active with rotational play on second and third liners while blue-chip stocks may continue its consolidation.

Overnight, the Dow rose +32.85 points or +0.27% to close at 12,426.75. Today, the FBM KLCI is likely to trade within a range of 1,546 to 1,560.

This week's expected range: 1483 – 1599
Today’s expected range: 1546 – 1560

Resistance: 1555, 1557, 1560
Support: 1546, 1548, 1550

Stocks to watch: DIGISTA, MEGB, BJFOOD, BENALEC, LINGUI

FBM KLCI - taking a breather

Stocks on Bursa Malaysia closed lower yesterday as investors took profits after recent gains. The FBM KLCI fell 2.41 points or 0.15% to 1,553.07 after opening 0.80 of a point higher at 1,556.28. Losers led gainers by 493 to 347 while 274 counters were unchanged. Turnover declined to 1.600 billion shares valued at RM1.970 billion from 1.694 billion shares worth RM2.238 billion on Monday.

The FBM KLCI opened 0.8 point higher at 1,556.28 and surged to the intra-day high of 1,557.43 within the first fifteen minutes, profit-taking activities which surfaced pressed the key index lower to the intra-day low of 1,552.27 before rebounding slightly to close off low at 1,553.07. Chart-wise, the FBM KLCI formed a small black spinning-top candlestick which is a continuation of the selling pressure on Monday, and it indicates consolidation of the key index.

MACD continued to move higher, but its histogram started to turn shorter, indicating a slow down in the upward momentum of the FBM KLCI. RSI (14) has hooked downward to 69.1 from the overbought zone, reflecting the pullback of the key index. Stochastic is lower at 91.3 and has crossed below its slow stochastic line, indicating a correction in taking place. Signals from the indicators showed that the FBM KLCI is undergoing a short term correction after the recent run-up, and the underlying market strength is still strong. Hence, the key index will continue with its uptrend after the correction is over.

The FBM KLCI is currently undergoing a pullback correction; nonetheless, its short term trend is still up. The medium term trend remained sideways as the 30-day moving average (MA) is still below the 60-day MA which is currently flat. The long term uptrend is intact. Immediate overhead resistance zone is at 1,557 to 1,577, while the immediate downside support zone is at 1,550 to 1,544. With the current daily volume of around 1.6 billion shares, the overall market is expected to remain active with rotational play on second and third liners, while key heavyweights may continue to consolidate.

Overnight, the Dow fell a marginal -6.13 points or -0.05% to close at 12,393.90. Today, the FBM KLCI is likely to trade within a range of 1,545 to 1,563.

This week's expected range: 1483 – 1599
Today’s expected range: 1545 – 1563

Resistance: 1557, 1560, 1563
Support: 1545, 1549, 1551

Stocks to watch: KIMLUN, MASTEEL, FITTERS, MITRA

FBM KLCI - almost unchanged

Stocks on Bursa Malaysia ended the yesterday in positive territory despite some profit taking after earlier gains. The FBM KLCI edged up 0.10 of a point or 0.01% to 1,555.48 after opening 6.56 points higher at 1,561.94. Gainers outnumbered losers by 486 to 370 while 282 counters were unchanged. Turnover increased to 1.694 billion shares valued at RM2.238 billion from 1.518 billion shares worth RM2.152 billion last Friday.

The FBM KLCI opened with an up gap of 6.56 points at 1,561.94 and surged to the intra-day high of 1,565.04 within the first fifteen minutes. Profit-taking activities which surfaced immediately pushed the key index southward into the negative territory to touch the intra-day low of 1,553.82 before rebounding to close at 1,555.48. Chart-wise, the FBM KLCI formed a black candlestick in star position which indicates heavy profit-taking activities by investors after the key index run up consecutively for four days, and hence, the FBM KLCI is likely to further consolidate itself.

MACD continued to climb higher, indicating a continuation of the upward momentum. RSI (14) is flat at 71.1 after entering the short term overbought zone. Stochastic at 95.9 has, however, hooked downward but is still above its slow stochastic line, may forewarn of a possible pullback. Readings of the indicators showed that the FBM KLCI is short term overbought, and may correct itself.

The short term trend of the FBM KLCI is currently up, and the medium term trend is sideways while the long term uptrend remained intact. Immediate overhead resistance zone is at 1,560 to 1,577, while the downside support zone is at 1,545 to 1,530. The overall market is expected to remain active with rotational play on second and third liners while the heavyweights consolidate.

Overnight, the Dow rose +23.31 points or +0.19% to close at 12,400.03. Today, the FBM KLCI is likely to trade within a range of 1,539 to 1,577.

This week's expected range: 1483 – 1599
Today’s expected range: 1539 – 1577

Resistance: 1563, 1570, 1577
Support: 1539, 1546, 1551

FBM KLCI - pullback correction likely

Stocks on Bursa Malaysia ended last week on a high note backed by robust regional markets coupled with fresh domestic leads. Inflow of more investments and planned slowing of subsidy cuts to spur consumption and cap inflation also aided market sentiment. The FBM KLCI closed at 1,555.38, up 10.25 points or 0.66%, after opening 1.91 points higher at 1,547.04. Week-on-week, the index surged 39.83 points or 2.62 per cent from previous Friday’s close of 1,515.55. Gainers outnumbered losers by 517 to 319 while 271 counters were unchanged. However, turnover fell to 1.518 billion shares, worth RM2.152 billion, from 1.951 billion shares, worth RM2.566 billion, transacted on Thursday. Nonetheless, weekly volume surged to 8.841 billion shares valued at RM11.383 billion, from the previous week’s 6.125 billion shares valued at RM8.214 billion.

The FBM KLCI opened last Monday with a down gap of 1.05 points at 1,514.50 and moved lower to hit the intra-week low of 1,511.98, before rebounding to close 1.3 points down at 1,514.25 after trading in narrow range. The key index rebounded on Tuesday and continued to move higher for the rest of the week to close at the week’s high of 1,555.38.

On the weekly chart, the FBM KLCI formed a bullish white candlestick which breakout from its recent consolidation range to close above the psychological resistance level of 1,550, as well as above all its moving averages. With this very bullish breakout, the FBM KLCI is expected to continue moving higher to re-test its historical high of 1,576.95 charted on January 6, 2011.

On the daily chart, the FBM KLCI formed a bullish white Marubozu candlestick with a continuation gap which indicates strong buying demand for index-link heavyweights. The key index has now closed above two critical resistance levels at 1,530 and 1,545, which indicates the recent downtrend which started on January 18 and saw its bottom on February 28 is over, and the downtrend had been reversed. With this strong reversal in the short term trend and a firm close above the neckline, the threat of the head-and-shoulder pattern is eased off now.

Weekly MACD has hooked up, and the histograms continued to turn shorter, which indicates a picking up of the weekly momentum. Daily MACD is continuing its up move to climb higher, indicating a strong pick up in the daily momentum.

Weekly RSI (14) has returned to the bullish zone and is at 61.8. Daily RSI (14) is higher at 71.1, indicating the key index is turning very bullish, but has also moved into the short term overbought zone, forewarning a possible pullback correction soon.

Weekly Stochastic has crossed above its weekly slow stochastic line, indicating a beginning of an up cycle on the weekly chart after going through the short term down cycle recently. Daily Stochastic continued to climb higher to 99.5, indicating very strong market strength and is short term overbought. Readings from the indicators showed a very bullish state of the FBM KLCI, and the key index is likely to continue with its up move. However, as some oscillators already showed signs of overbought, a pullback correction is expected soon.

The short term trend of the FBM KLCI has turned up. However, the medium term trend is still sideways as indicated by the medium term 60-day MA which is flat and the 30-day MA is still below the 60-day MA. The FBM KLCI will turn fully bullish when the 30-day MA crosses above the 60-day MA. The long term uptrend is intact. Immediate overhead resistance zone is at 1,560 to 1,577, while the downside support zone is at 1,545 to 1,530.

Last Friday, the Dow rose another +56.99 points or +0.46% to close at 12,376.72. This week, the FBM KLCI is likely to trade within a range of 1,483 to 1,599, and for today it is likely to trade within a range of 1,541 to 1,564.

This week's expected range: 1483 – 1599
Today’s expected range: 1541 – 1564

Resistance: 1558, 1561, 1564
Support: 1541, 1544, 1549

FBM KLCI - closed in the bullish territory

Stocks on Bursa Malaysia closed higher yesterday on bargain-hunting amid "easing worries" of inflation and possible production disruptions in Japan due to the recent earthquake. The FBM KLCI finished 13.5 points or 0.88% higher at 1,545.13 on persistent buying in heavyweight and selective counters. Losers led gainers by 481 to 391 while 261 counters were unchanged. Turnover shed to 1.951 billion shares worth RM2.566 billion from 2.338 billion shares worth RM2.481 billion transacted on Wednesday.

The FBM KLCI opened with an up gap of 4.98 points at 1,536.61 and traded in a narrow range of 2 points for the morning session. The key index staged a breakout from the intra-day consolidation range to move higher in the afternoon session to close at the day’s high. Chart-wise, The FBM KLCI formed a bullish white candlestick which indicates buyers were in control for the day. The key index had opened above the neckline of the head-and-should (H&S) pattern and continued to stay above it, with this move, the threat of the H&S pattern has eased and the downtrend which begun on January 18 is reversed. Hence, the FBM KLCI is likely to continue its up move to test the psychological resistance at 1,550.

MACD continued to move higher into the positive zone after crossing the zero-line two days ago, and indicates a continuation of the upward momentum. RSI (14) surged higher to 67.7 and has moved into the bullish zone. Stochastic is higher at 97.1, which indicates a very strong market strength. Nonetheless, it has moved into the short term overbought zone, and a pullback is likely to happen. Readings from the indicators showed that the FBM KLCI has turned bullish, and is likely to continue its upward momentum to challenge higher resistance levels.

The FBM KLCI has now turned bullish as what we have forecasted in Monday’s posting that “the FBM KLCI would turn bullish if it is able to clear the resistance at 1,524 and 1,530”, and it did. The short term trend is now up. However, the medium term trend remained sideways as the short term moving averages (MA) are still below the medium term 60-day MA. The market will only stage a bull-run when all the short term MAs cross above the 60-day MA. Long term uptrend remained intact. Immediate overhead resistance zone is at 1,549 to 1,556 while the downside support zone is at 1,538 to 1,528.

Overnight, the Dow fell -30.88 points or -0.25% to close at 12,319.73. Today, the FBM KLCI is likely to trade within a range of 1,528 to 1,556.

This week's expected range: 1483 – 1556
Today’s expected range: 1528 – 1556

Resistance: 1549, 1552, 1556
Support: 1528, 1531, 1538