Stocks on Bursa Malaysia ended broadly higher yesterday on renewed buying interest in key heavyweights, especially finance and plantation counters. Sentiment was fuelled by positive showing in Asian bourses, firmer close on Wall Street overnight, strong economic data from China and also higher commodity prices. The FBM KLCI soared 12.66 points or 0.8% to 1,536.03 after opening 2.35 points higher at 1,525.72. Market breadth was positive with gainers overwhelming losers by 594 to 202 while 285 counters were unchanged. Total volume increased to 1.05 billion shares valued at RM1.63 billion from Tuesday’s 847.99 million shares worth RM1.15 billion.
The FBM KLCI opened with an up gap of 2.35 points at 1,525.72 and climbed to the intra-day high of 1,538.54 before profit-taking activities pressed it down to close off high at 1,536.03. Chart-wise, the FBM KLCI formed a bullish long white candlestick which indicates buyers were in control for the day, and is likely to continue to move higher today. The key index will have to close above the resistance level at 1,541 and 1,565 in order for it to breakout from its current downtrend.
MACD has turned upward, indicating a pick up in the upward momentum. Nonetheless, it is still below the zero-line and the signal-line, and hence the up turn could be just a technical rebound until it crosses above both lines. RSI (14) is higher at 55.7, indicating a pick up in the market strength to the mildly bullish level. Stochastic has crossed above its slow stochastic line and is at 56.6, indicating a continuation in the short term up cycle and improved market strength. Readings from the indicators showed that the FBM KLCI is gradually turning from mildly bearish to mildly bullish. However, more data is required for confirmation.
The FBM KLCI is currently closing above all its short, medium and long term moving averages. The short term trend has just turned upward. However, the medium term trend remained sideways, while the long term uptrend is still intact. Immediate overhead resistance zone is at 1,539 to 1,565, while the downside support zone is at 1,525 to 1,507.
Overnight, the Dow fell -130.33 points or -1.02% to close at 12,630.03. Today, the FBM KLCI is likely to trade within a range of 1,515 to 1,551.
This week's expected range: 1472 – 1551
Today’s expected range: 1515 – 1551
Resistance: 1541, 1546, 1551
Support: 1515, 1520, 1528
I can't access blogger.com or gmail at all while in China, Google was being blocked totally.
Some of the scenery photos of Qingdao City, China. Hope you enjoy it. (Double click on photo to enlarge)
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