Stocks on Bursa Malaysia closed steadier yesterday as investors snapped up stocks which were made attractive after a recent sell-off. The FBM KLCI ended 3.96 points or 0.26% higher at 1,523.37, after opening 0.44 of a point lower at 1,518.97. Market breath was positive with gainers outpacing losers by 359 to 344, while 330 counters traded unchanged. Turnover increased to 847.99 million shares valued at RM1.15 billion as compared to Monday’s 716.24 million shares worth RM1.08 billion.
The FBM KLCI opened 0.44 point lower at 1,518.97 and fell to the intra-day low of 1,518.15 briefly after open, and it rebounded to the intra-day high of 1,525.78 before profit-taking pressed it to close of high. Chart-wise, the FBM KLCI formed a bullish white candlestick which confirmed the bottom reversal signal issued by the hammer candlestick formed on last Friday, and it also closed the down gap. Hence, the FBM KLCI is likely to continue to move higher.
MACD has turned flat; nevertheless, the histogram has turned shorter upward, indicating a reduction in the downward momentum. RSI (14) continued to move higher and is now at 47.4, indicating the key index is making a reversal towards the neutral zone from the mildly bearish zone. Stochastic is at 35.8, and has hooked up to cross its slow stochastic line, indicating a possible reversal of the down cycle. Readings from the indicators showed that the FBM KLCI is trying to move out of its consolidation zone. However, more effort is needed to make it happen.
The short term trend of the FBM KLCI is still down, nonetheless, it has close above the 5-day moving average (MA), giving a first indication that the key index may reverse upward. However, the strong resistance zone at 1,526 to 1,541 may continue to post as barrier to the up move. The medium term trend is sideways, while the longer term uptrend still remained intact. Immediate overhead resistance zone is at 1,526 to 1,541, while the immediate downside support zone is at 1,520 to 1,507.
Overnight, the Dow rose +75.68 points or +0.60% to close at 12,760.36. Today, the FBM KLCI is likely to trade within a range of 1,511 to 1,534.
This week's expected range: 1472 – 1551
Today’s expected range: 1511 – 1534
Resistance: 1527, 1530, 1534
Support: 1511, 1514, 1519
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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