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
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