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
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