Stocks on Bursa Malaysia ended last Friday on a strong note, led by gains in selected banking and blue-chip stocks. The local bourse was also supported by Petronas' US$20 billion (RM60.2 billion) integrated refinery and petrochemicals complex development in southern Johor. The FBM KLCI finished up 8.45 points or 0.55% at 1,540.74, after opening 1.18 points higher at 1,533.47. Week-on-week, the key index gained 25.24 points or 1.7% from previous Friday’s close of 1,515.50. Advancers outpaced decliners by 499 to 258 while 303 counters traded unchanged. Turnover increased to 1.18 billion shares valued at RM1.71 billion from the 919.61 million shares worth RM1.35 billion recorded on Thursday. Weekly volume increased to 4.71 billion shares, worth RM6.91 billion, from 3.92 billion shares, worth RM5.45 billion, transacted the previous week.
The FBM KLCI opened 1.71 points higher at 1,517.21 on last Monday, and fell to the intra-week low of 1,515.39 amid bearish sentiment on concerns over the global economy, and the key index later rebounded to end the day 3.91 points higher at 1,519.41. On Tuesday, the overall market was steadier and the FBM KLCI made a gain of 3.96 points to close at 1,523.37. Bursa Malaysia continued to perform well on Wednesday on renewed buying interest in key heavyweights, especially finance and plantation counters which help pushed the key index 12.66 points higher to close at 1,536.03. After a three days rally, the FBM KLCI staged a minor pull-back on Thursday to close 3.74 points lower at 1,532.29 on renewed concerns over the Greek debt and another sell-off in commodities. The key index rebounded strongly on Friday to end 8.45 points higher at 1,540.74.
On the weekly chart, the FBM KLCI formed a bullish white candlestick which engulfed the body of previous week’s candle, and this indicates the bulls made a strong fight back after a week of suppression by the bears. With the strong upward move last week, the FBM KLCI is likely to continue its upward momentum to move higher this week to challenge the next resistance level at 1,550 and 1,565. The key index will have to close above the 1,565 level in order to breakout from its current consolidation range.
On the daily chart, the FBM KLCI formed a bullish white candlestick and closed right above its immediate resistance of 1,540.55. The key index is also closing above all its short, medium and long term moving averages, which shows that the key index is breaking out of its consolidation to move higher and is likely to re-test the next target at 1,550.
Weekly MACD has turned upward slightly, and its weekly histogram is turning shorter upward, giving out a first sign of the change in weekly market momentum. However, the weekly MACD is still below the signal line, indicating the upward move could well be just a rebound. Daily MACD, however, has crossed above the zero line, and also made a golden-cross above its daily signal line, giving out a strong buy signal.
Weekly RSI (14) has turned upward to 56.7, indicating the weekly relative strength of the FBM KLCI is turning mildly bullish from neutral a week ago. Daily RSI (14) is also climbing higher to 57.9, indicating the key index is moving into the mildly bullish zone.
Weekly Stochastic is at 61.8 and has made a crossed over its weekly slow stochastic line, indicating a pick up in the weekly upward strength and resumption of the weekly up cycle. Daily Stochastic continued to surge higher and crossed above the 80 level to reach 83.3, indicating the short term strength is turning strong. Readings from the indicators showed that the FBM KLCI is turning bullish for the short term, while its weekly signal is also about to turn bullish. Hence, the key index may continue with its upward momentum to re-test higher targets this week.
The FBM KLCI is currently closing above all its short, medium and long term moving averages which indicates the benchmark index is starting to turn bullish after a long consolidation. The short term trend has turned up, while the medium term trend is still sideways, and the long term uptrend remained intact. Immediate overhead resistance zone is at 1,545 to 1,565, while the immediate downside support zone is at 1,532 to 1,521
Last Friday, the Dow fell -100.17 points or -0.79% to close at 12,595.75. This week, the FBM KLCI is likely to trade within a range of 1,492 to 1,575, and for today it is likely to trade within a range of 1,521 to 1,558.
This week's expected range: 1492 – 1575
Today’s expected range: 1521 – 1558
Resistance: 1547, 1552, 1558
Support: 1521, 1527, 1534
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Some of the magnificent scenery photos of Mount Taishan, Shandong Province, China. Hope you enjoy it. (Double click on photo to enlarge)
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