FBM KLCI - approaching historical high

Stocks on Bursa Malaysia ended higher yesterday, helped by gains in selected blue chips. Month-end window-dressing and portfolio tweaking by hedge fund managers ahead of their first-half earnings reports also provided the support to the index. The overall market was positive and moving towards breaking the resistance level. The FBM KLCI rose 4.99 points to close at 1,575.01. Advancers led decliners by 434 to 333 while 319 counters closed unchanged. Volume rose to 1.04 billion shares valued at RM1.80 billion from 935.53 million shares valued at RM1.92 billion on Tuesday.

The FBM KLCI opened with an up gap of 2.57 points at 1,572.59 and surged to the intra-day high of 1,575.81 within the first ten minutes. The key index was basically in an intra-day downtrend with intermittent rebound even though it was trading in the positive territory, and it hit the intra-day low of 1,570.39 before rebounding strongly to close at 1,575.01 on last minute buying of selected blue-chip stocks. Chart-wise, the FBM KLCI formed a white spinning-top like candlestick which indicates hesitation of the key index to move higher. In fact, the intra-day price action showed that there were heavy profit-taking activities throughout the day. However, the last minute job had covered up the selling activities. Nevertheless, the key index is likely to move higher to re-test the historical high of 1,576.95.

MACD continued to climb higher, indicating a pick up in the upward momentum. RSI (14) also climb higher to 65.8, indicating the relative strength of the FBM KLCI is getting more bullish. Stochastic was higher at 93.2, indicating strong market strength and the short term up cycle is intact. Readings from the indicators showed that the FBM KLCI is picking up in strength and momentum, and is likely to continue its upward move to scale new high.

The underlying uptrend of the FBM KLCI is intact, as the key index is staying above all the short, medium and long term moving averages. Immediate overhead resistance is the historical high level of 1,576.95, and a move beyond this level will send the benchmark index into the uncharted territory, targeting the 1,600-point level. Immediate downside support zone is at 1,566 to 1,560. With the volume again going above the 1 billion shares mark, the overall market is likely to see more rotational play in the second and third liners with the FBM KLCI remained bullish.

Overnight, the Dow rose +72.73 points or +0.60% to close at 12,261.42. Today, the FBM KLCI is likely to trade within a range of 1,566 to 1,582

This week's expected range: 1540 – 1577
Today’s expected range: 1566 – 1582

Resistance: 1577, 1579, 1582
Support: 1566, 1568, 1571

FBM KLCI - bullish breakout

Stocks on Bursa Malaysia closed higher yesterday boosted by gains in selected finance blue chips and newly-listed MSM Holdings' encouraging performance. Finance stocks, led by RHB and CIMB, influenced the FBM KLCI's movement yesterday. The FBM KLCI rebounded to end the day 7.5 points or 0.48% higher at 1,570.02 after opening 1.48 points lower at 1,561.04. Advancers led decliners 492 to 278 while 303 counters were unchanged. Volume increased to 935.529 million shares valued at RM1.918 billion from 788.372 million shares valued at RM1.337 billion previously.

The FBM KLCI opened 1.48 points lower at 1,561.04 and moved higher throughout the day with intermittent mild profit-taking activities, it close at the highest point of the day at 1,570.02. Chart-wise, the FBM KLCI formed a bullish engulfing Marubozu candlestick, which indicates the bulls were in full control for the day. With the bullish up move yesterday, the key index had managed to break through the resistance at 1,566 and is likely to continue with its momentum today to challenge the historical peak of 1,576.95.

MACD has turned upward and so is the histogram, indicating a pick up in momentum. RSI (14) has hooked up to 62.99, indicating the relative strength of the key index is turning bullish. Stochastic has also made a reversal up to 89.8, and has crossed above the slow stochastic line, indicating a resumption of the up cycle. Readings from the indicators showed that the FBM KLCI is turning bullish and the momentum is also picking up, hence, might continue to move higher.

The underlying uptrend of the FBM KLCI remained intact. Immediate strong overhead resistance is expected at 1,577, and the immediate downside support zone lies at 1,560 to 1,550. With volume gradually picking up, the overall market is likely to gradually pick up in its trading momentum.

Overnight, the Dow rose +145.13 points or +1.21% to close at 12,188.69. Today, the FBM KLCI is likely to trade within a range of 1,555 to 1,579

This week's expected range: 1540 – 1577
Today’s expected range: 1555 – 1579

Resistance: 1573, 1576, 1579
Support: 1555, 1558, 1564

Stocks to watch: CUSCAPI, KBB, SCABLE,

FBM KLCI - lower but with buying support

Stocks on Bursa Malaysia managed to recover some of their losses at closing yesterday amid cautious sentiment as major regional markets fell on Greek woes. External factors including concerns over the European debt crisis, coupled with continued depression from crude oil prices affected investor sentiment across the region. The FBM KLCI fell 2.14 points or 0.14% to end at 1,562.52 after opening 3.34 points lower at 1,561.32. Decliners led advancers by 433 to 263 while 313 counters were unchanged. Total volume decreased to 788.372 million shares valued at RM1.337 billion from 1.076 billion shares valued at RM1.718 billion last Friday.

Taking cue from the poor performance of Wall Street last Friday, the FBM KLCI opened with a down gap of 3.34 points at 1,561.32 and hit the intra-day low of 1,560.32 within the first five minutes. The key index then rebounded to touch the intra-day high of 1,564.30 at noon before selling pressure pushed it to close off high at 1,562.52. Chart-wise, the FBM KLCI formed a white spinning-top candlestick which indicates the bears were trying to press down the key index, but the bulls were able to defense the index from breaking the important support at 1,560 when the index closed above the mid-point of the day. The FBM KLCI is now closing below the short term 5-day moving average (MA), but is still above the 10-day MA, indicating short term correction.

MACD has turned southward, and the histogram too is turning shorter, indicating a loss in the momentum. Nonetheless, as the MACD is still above the signal line, the present weakness is just a correction to the uptrend. RSI (14) is lower at 58.2, indicating the relative strength of the FBM KLCI is turning mildly bullish from bullish. Stochastic is at 83.6 and has crossed below the slow stochastic line, indicating a possible end to the short term up cycle and weakness is surfacing. Readings from the indicators showed that the FBM KLCI is beginning to turn weak in terms of momentum, and hence might continue to stay range-bound with a downward bias.

The underlying trend of the FBM KLCI remained up; however, weakness has begun to surface. Immediate support is at 1,560 provided by the 10-day MA, if the key index breaks below this level, there is a high likelihood that it may continue to slide lower towards the 1,550 critical support level. Overhead resistance zone remained at 1,566 to 1,577. With the dwindling volume, the FBM KLCI is likely to extend its consolidation while the overall market is likely to remain sluggish with speculative interest seen in the second and third liners.

Overnight, the Dow rose +108.98 points or +0.91% to close at 12,043.56. Today, the FBM KLCI is likely to trade within a range of 1,556 to 1,569

This week's expected range: 1540 – 1577
Today’s expected range: 1556 – 1569

Resistance: 1565, 1567, 1569
Support: 1556, 1558, 1560

FBM KLCI - consolidation likely to extend

Stocks on Bursa Malaysia ended last week on a mixed note with follow-through interest in selected heavyweights, especially CIMB and Maybank. The decision by the country's two largest banks, Maybank and CIMB, to call off talks with RHB Cap on a possible merger attracted relief buying interest in the stocks. The FBM KLCI rose 1.47 points or 0.09% to 1,564.66 after opening 0.77 point higher at 1,563.96. Week-on-week, the key index gained 1.23 points from previous Friday’s close of 1,563.43. Market breadth was bullish with 434 gainers compared with 286 losers. Volume increased to 1.08 billion shares worth RM1.72 billion as compared to Thursday's 875.69 million shares valued at RM1.43 billion, and weekly volume increased to 4.6 billion shares worth RM7.64 billion from 4.12 billion shares worth RM7.81 billion the previous week.

The FBM KLCI was basically in consolidation mode last week; it kicked off the week on an easier note in line with losses in regional markets to close 4.24 points lower at 1,559.19 on Monday after hitting the intra-week low of 1,557.52, The key index rebounded on Tuesday to close 1.60 points higher at 1,560.79 after drifting aimlessly throughout the day. On Wednesday, the FBM KLCI staged a breakout from its consolidation to close 6.56 points higher at 1,567.35 on last minute buying of selected blue-chip stocks. However, the breakout Wednesday did not sustain, and the key index fell 4.16 points on profit-taking to close at 1,563.19 on Thursday. The benchmark FBM KLCI rebounded marginally to close the week 1.47 points higher at 1,564.66 on last Friday.

On the weekly chart, the FBM KLCI formed a small white spinning-top candlestick. The appearance of this candlestick after an up move indicates the market was hesitant to move higher and is taking a breather. On the daily chart, the key index also formed a small white spinning-top candlestick which indicates consolidation after a downward move on Thursday. The FBM KLCI is basically in consolidation mode from both weekly and daily chart perspective. Immediate strong overhead resistance zone is at 1,566 to 1,577, while the immediate downside support zone is at 1,560 to 1,550.

Weekly MACD had just made a golden-cross over the signal line, issuing a buy signal for the FBM KLCI. Daily MACD was marginally higher, but the histogram continued to turn shorter, indicating a lack of momentum, despite the MACD staying positive. Weekly RSI (14) was marginally higher at 60.97 from 60.72 for the previous week. Daily RSI (14) has hooked up to 60.3 from 59.3. Both weekly and daily RSI value showed that the FBM KLCI is mildly bullish. Weekly Stochastic is higher at 93.7, same goes with the daily Stochastic which is now at 90.4, and both are tapering off, indicating a weakening in the short term market strength, nonetheless, the short term up cycle is still intact. Readings from the indicators showed that the momentum and strength of the FBM KLCI is positive but is not strong. Therefore, the key index is likely to continue with its current consolidation mode.

The underlying trend of the FBM KLCI is up. However, the momentum is not there, as can be seen from the tight daily trading range and the relatively low volume. The signals from the candlestick and the indicators showed that the FBM KLCI is likely to remain range-bound this week with an upward bias, targeting a re-test of the historical peak of 1,576.95, of which a breakout would send the benchmark to the uncharted territory.

Last Friday, the Dow fell -115.42 points or -0.96% to close at 11,934.58. This week, the FBM KLCI is likely to trade within a range of 1,540 to 1,577, and for today it is likely to trade within a range of 1,559 to 1,569

This week's expected range: 1540 – 1577
Today’s expected range: 1559 – 1569

Resistance: 1566, 1567, 1569
Support: 1559, 1560, 1562

FBM KLCI - pulled back on profit taking

Stocks on Bursa Malaysia closed on an easier note yesterday amid weak performance by financial stocks including RHB Capital, CIMB and Maybank. Sentiment on the broader market was weak, tracking the weaknesses in Asian stocks following overnight losses on Wall Street. The market was quiet amid lack of fresh buying interests on concerns over global growth after the Federal Reserve lowered forecast for US economic growth this year and 2012. The benchmark FBM KLCI fell by 4.16 points or 0.27% to close at 1,563.19. Losers led gainers by 393 to 330 while 308 were unchanged. Volume increased to 875.69 million shares valued at RM1.43 billion from 847.12 million shares valued at RM1.52 billion yesterday.

The FBM KLCI opened 1.31 points lower at 1,566.04 and rebounded to the intra-day high of 1,567.19, but profit-taking activities continued to pressed the key index to the intra-day low of 1,562.20 before closing off low at 1,563.19. Chart-wise, the FBM KLCI formed a bearish Harami candlestick pattern, which is a top reversal pattern. As it was mentioned yesterday, the bullish candlestick formed the day before could turn out to be a bull-trap, and it did. The key index has now retraced below the strong resistance level of 1,566, and may continue to consolidate below this level for the time being.

MACD was marginally higher, but the histogram was shorter, indicating a loss in the upward momentum. RSI (14) fell to 59.3, indicating the relative strength of the key index has turned mildly bullish from bullish. Stochastic is higher at 89.1, but is tapering off, indicating a gradual loss in market strength even though the short term up cycle is still intact. Readings from the indicators showed that the FBM KLCI is losing its upward momentum and may take a breather and consolidate itself.

The underlying trend of the FBM KLCI remained up. However, the upward momentum is not there, as can be seen from the average daily volume of around 820 million shares over the last two weeks. The overall market is likely to continue to drift sideways for a while. Immediate overhead resistance zone is at 1,566 to 1,577, while the downside support zone is at 1,560 to 1,550.

Overnight, the Dow fell -59.67 points or -0.49% to close at 12,050.00. Today, the FBM KLCI is likely to trade within a range of 1,556 to 1,573.

This week's expected range: 1529 – 1585
Today’s expected range: 1556 – 1573

Resistance: 1566, 1570, 1573
Support: 1556, 1559, 1561

Stocks to watch: EQUINE, DIJACOR, KURASIA

FBM KLCI - breakout on last minute job

Stocks on Bursa Malaysia ended higher yesterday as last-minute buying emerged in selected heavyweights. Most investors took the opportunity to buy beaten-down stocks which offered attractive valuations after the recent correction. However, sentiment on the broader market remained bearish as investors stayed on the sidelines awaiting the outcome of the US Federal Reserve’s policy meeting later yesterday. The FBM KLCI rose 6.56 points or 0.42% to close at 1,567.35. Market breadth was bearish with 383 losers compared with 362 gainers while 327 were unchanged. Volume declined to 847.12 million shares, worth RM1.52 billion, compared with Tuesday’s 952.98 million shares worth RM1.56 billion.

The FBM KLCI opened 0.90 point higher at 1,561.69 and moved to the morning session high of 1,565.34 before profit-taking activities pressed it down to the intra-day low of 1,559.95, and last minute buying of selected blue-chips pushed the key index to close at the day’s high of 1,567.35. Chart-wise, the FBM KLCI formed a bullish white candlestick which made a breakout of the resistance level at 1,566. With this bullish move, the benchmark index is likely to continue its upward momentum to climb higher to re-test the historical high level of 1,576.95. However, as the close was a last minute job, one has to be careful that this could turn out to be a bull-trap.

MACD was higher, indicating a pick up in the momentum. RSI (14) was higher at 63.2, indicating the relative strength of the key index has turned bullish. Stochastic was higher at 87.4 indicating the short term up cycle is intact, and the market strength is turning strong. Readings from the indicators showed that the FBM KLCI is gradually turning bullish, and might continue with its upward momentum to move higher.

As the FBM KLCI is closing above all the short, medium and long term moving averages, the trend of the benchmark index is currently up. Immediate overhead resistance zone is at 1,570 to 1,577, while the downside support zone is at 1,556 to 1,550. With volume continue to stay below the 1 billion shares mark, the overall market is likely to continue to drift sideways while waiting for fresh leads.

Overnight, the Dow fell -80.34 points or -0.66% to close at 12,109.67. Today, the FBM KLCI is likely to trade within a range of 1,555 to 1,575.

This week's expected range: 1529 – 1585
Today’s expected range: 1555 – 1575

Resistance: 1570, 1573, 1575
Support: 1555, 1557, 1562

FBM KLCI - marginally higher

Stocks on Bursa Malaysia ended mixed yesterday with the benchmark FBM KLCI climbing back to the crucial 1,560-point level. Overall, the market sentiment was weak with most investors sidelined awaiting new leads and the outcome of US Federal Open Market Committee meeting today. The FBM KLCI rose 1.60 points, or 0.1%, to close at 1,560.79 after opening 1.08 points higher at 1,560.27. Losers led gainers by 473 to 268 while 320 counters were unchanged. Turnover increased to 952.98 million shares worth RM1.56 billion from 849.81 million shares worth RM1.4 billion on Monday.

The FBM KLCI opened 1.08 points higher at 1,560.27 and slipped to the intra-day low of 1,557.68 within the first forty five minutes of trade. The key index rebounded and was moving in and out of the positive and negative zone for a major part of the day before ending in the positive territory. Chart-wise, the FBM KLCI formed a white hammer candlestick which indicates buying support from the bulls after being beaten down in early trade. The key index is at a critical level now and is searching for its direction; a breakout above 1,566 could see it rally towards the historical high of 1,576.95, while a break below 1,556 will see it falling back to the consolidation zone.

MACD was marginally higher, indicating positive but weak upward momentum. RSI (14) hooked up slightly to 59.3, indicating the short term relative strength of the key index is still mildly bullish. Stochastic continued to climb higher to 83.2, indicating the short term up cycle is still intact. Nonetheless, the stochastic reading showed that the key index is moving into the short term overbought zone and faces risk of pullback. Readings from the indicators showed that the FBM KLCI is in positive in strength but weak in momentum.

The underlying short, medium and long term trend of the FBM KLCI is currently up. However, the key index is lacking in momentum, as can be seen from the volume traded which has been staying below the 1 billion shares mark. Without any fresh leads, the FBM KLCI, and the market in general, is likely to continue drifting sideways.

Overnight, the Dow rose +109.63 points or +0.91% to close at 12,190.01. Today, the FBM KLCI is likely to trade within a range of 1,554 to 1,566.

This week's expected range: 1529 – 1585
Today’s expected range: 1554 – 1566

Resistance: 1563, 1564, 1566
Support: 1554, 1556, 1558

FBM KLCI - lower in line with regional market

Stocks on Bursa Malaysia closed easier yesterday in line with losses in regional markets. Most Asian stock markets fell amid a fresh round of concerns over China's economic growth and possible new measures to cool housing prices. Concerns over the pace of recovery in the US economy with the end of the Federal Reserve's bond-buying programme this month and escalating debt woes in Greece put further pressure on the market The FBM KLCI ended at 1,559.19, down 4.24 points or 0.27%, after opening 1.44 points lower at 1,561.99. Decliners led advancers by 484 to 290, while 304 counters were unchanged. Volume was lower at 849.81 million shares worth RM1.40 billion compared with 946.22 million valued at RM2.22 billion last Friday.

The FBM KLCI opened 1.44 points lower at 1,561.99 but rebounded to the intra-day high of 1,563.66 within the first thirty minutes. Profit-taking activities which appeared pushed the key index to hit the intra-day low of 1,557.52 before last minute bargain hunting on selected blue-chips pushed the key index to close off low at 1,559.19. Chart-wise, the FBM KLCI formed a black spinning-top in bearish Harami position which indicates indecision of market direction with a downward bias. The key index has continued to close above the downtrend channel as well as all the moving averages, indicating a bullish state of the index. However, the strong resistance at 1,566 continued to impose pressure on the key index.

MACD moved higher but marginally after making the golden-cross on last Friday, indicating a lack of momentum in the FBM KLCI. RSI (14) fell to 58.3, indicating the key index’s relative strength is reduced to mildly bullish from bullish on last Friday. Stochastic is higher at 71.8, indicating the short term up cycle is still intact. Signals from the indicators showed that the upward momentum of the FBM KLCI is reducing, but has not turn bearish yet.

The short term trend of the FBM KLCI is up, the medium term trend, as indicated by the 60-day moving average is also starting to climb upward, and the long term uptrend is intact. The FBM KLCI is in an uptrend state, however, it still lacks momentum, perhaps some catalysts is needed for it to push through the overhead resistance zone at 1,566 to 1,577. Immediate downside support zone is at 1,556 to 1,545.

Overnight, the Dow rose +76.02 points or +0.63% to close at 12,080.38. Today, the FBM KLCI is likely to trade within a range of 1,550 to 1,570.

This week's expected range: 1529 – 1585
Today’s expected range: 1550 – 1570

Resistance: 1563, 1566, 1570
Support: 1550, 1553, 1556

Stocks to watch: LBS, GLOMAC, CUSCAPI

FBM KLCI - likely to challenge historical high

Stocks on Bursa Malaysia closed higher last Friday following active buying interest in selected heavyweights, particularly Maybank. Gains in most heavyweight counters pushed the benchmark FBM KLCI 9.19 points or 0.59% higher to 1,563.43, and week-on-week, the key index gained 7.24 points or 0.24% from previous Friday’s close of 1,556.19. Gainers led losers by 394 to 345 while 352 counters closed unchanged. Turnover rose to 946.222 million shares worth RM2.22 billion compared with 814.91 million shares valued at RM1.645 billion on Thursday. Weekly volume increased to 4.121 billion shares worth RM7.805 billion from 3.674 billion shares worth RM6.608 billion the previous week.

The FBM KLCI opened last Monday on a weak note with a down gap of 4.48 points at 1,551.71 and closed at the day’s low of 1,545.88. The key index continued to slide lower on Tuesday to touch the intra-week low of 1,543.56 before rebounding to close 2.63 points higher at 1,548.51. On Wednesday, the FBM KLCI continued its upward momentum to close at the day’s high of 1,556.19 with a gain of 7.68 points. Thursday, the key index slipped 1.95 points to 1,554.24 on weak external factors, and on Friday, the FBM KLCI gained 9.19 points to finish the week near the week’s high at 1,563.43.

On the weekly chart, the FBM KLCI formed a bullish engulfing candlestick over the dragon-fly Doji candlestick formed on previous week. This indicates the bulls were strong in reversing the trend after being beaten down in the early part of the week. The key index has continued its gradual climb for the sixth weeks, and is likely to continue its uptrend in the coming week to re-test the historical high of 1,576.95. On the daily chart, The FBM KLCI formed a bullish white candlestick which gap away from Thursday’s candle. The gap indicates bullish undertone of the key index and it is expected to continue with its upward momentum to move higher today. However, immediate strong resistance is at 1,566, if the key index is able to cross this resistance level convincingly, it might rally higher to challenge the historical high level of 1,576.95.

Weekly MACD continued to move higher, and is about to cross the weekly MACD signal line. This indicates a continued gradual gain in the weekly upward momentum of the FBM KLCI. Daily MACD, nonetheless, has just made a golden cross over its daily MACD signal line, giving out a bullish buy signal. Weekly RSI (14) has hooked up and is at 60.7, indicating the weekly relative strength of the FBM KLCI is turning bullish. Daily RSI (14) is higher at 62.1, indicating the daily relative strength already moved into the bullish zone. Weekly Stochastic is at 92.9, indicating strong weekly market strength. Daily Stochastic has just crossed over its slow stochastic line, indicating a change in the short term market cycle from down to up. Readings from the indicators showed that the FBM KLCI is gradually gaining momentum and strength, and hence has a strong likelihood to re-test the historical high level.

The FBM KLCI has now broke out from the short term downtrend channel and closed above the 1,560 level, signaling the short term trend has turned upward. The medium term trend, as indicated by the 60-day moving average is also starting to climb upward, and the long term trend still remained up. Immediate strong overhead resistance zone is at 1,566 to 1,577, while the downside support zone is at 1,556 to 1,543. With the volume climbing towards the 1 billion mark, it indicates the market is gradually picking up steam; however, investors remained cautious in their buying.

Last Friday, the Dow rose +42.84 points or +0.36% to close at 12,004.36. This week, the FBM KLCI is likely to trade within a range of 1,529 to 1,585, and for today it is likely to trade within a range of 1,550 to 1,573.

This week's expected range: 1529 – 1585
Today’s expected range: 1550 – 1573

Resistance: 1567, 1570, 1573
Support: 1550, 1553, 1558

FBM KLCI - lower with buying support

Stocks on Bursa Malaysia ended broadly lower yesterday as investors sold some of their holdings in selected heavyweights. External factors, including weaker performance on Wall Street and concerns over Greece debt crisis, had affected sentiment across the region. The FBM KLCI slipped 1.95 points or 0.13% to 1,554.24, dragged down by losses in Petronas Chemicals. Decliners led advancers by 558 to 210, while 289 counters closed unchanged. Total volume fell to 814.91 million shares valued at RM1.65 billion from Wednesday’s 888.69 million shares valued at RM1.6 billion.

Taking cue from the weak performance of Wall Street overnight, the FBM KLCI opened 3.08 points lower at 1,553.11 and slid to the intra-day low of 1,549.65. The key index then rebounded to hit the intra-day high of 1,554.24 was moving within these two extremes before last minute buying of selected blue-chips pushed the key index to close at the day’s high. Chart-wise, the FBM KLCI formed a white hammer candlestick in bullish Harami position which indicates sellers were dominant initially, but later buyers fought back to take control of the key index, and the FBM KLCI is likely to continue its upward momentum to move higher. However, immediate strong overhead resistance zone is at 1,556 to 1,560, as the key index is currently still stay within the downtrend channel.

MACD was marginally down and continued to stay below the signal line, indicating the FBM KLCI is still in consolidation mode. RSI (14) has hooked downward to 56.5, and is still in the mildly bullish zone. Stochastic is at 48.5 and has hooked upward slightly, but is still below the slow stochastic line, signaling a mild rebound. Readings from the indicators showed that the FBM KLCI is still in a consolidation mode, and this may be extended until clear sign of upward breakout is observed.

For the short term, the FBM KLCI is still trapped in the downtrend channel, and a close above 1,560 is required for the key index to breakout from this downtrend channel. However, the FBM KLCI is currently closing above all the short, medium and long term moving averages, and hence has an upward bias. The medium term trend remained sideways while the long term uptrend is still intact. Immediate overhead resistance is at 1,556 to 1,560, while the downside support zone is at 1,549 to 1,540.

Overnight, the Dow rose +64.25 points or +0.54% to close at 11,961.52. Today, the FBM KLCI is likely to trade within a range of 1,546 to 1,559

This week's expected range: 1539 – 1569
Today’s expected range: 1546 – 1559

Resistance: 1556, 1557, 1559
Support: 1546, 1548, 1551

FBM KLCI - reversed up

Stocks on Bursa Malaysia staged a rebound in active buying yesterday after two days of lackluster trading. The FBM KLCI climbed 7.68 points or 0.5% to the day’s high of 1,556.19, on gains in heavyweights like Petronas Chemicals, Tenaga, Petronas Gas and Maxis. The four counters contributed 6.19 points to the increase in FBM KLCI. Gainers led losers by 421 to 329 while 311 counters closed unchanged. Total volume rose to 888.69 million shares valued at RM1.6 billion from 737.884 million shares worth RM1.209 billion on Wednesday.

The FBM KLCI opened 0.16 point lower at 1,548.35 and hit the intra-day low of 1,547.92 shortly after opening. The key index then rebounded to move higher and was staying in the positive zone for the rest of the day before last minute buying of selected blue-chips pushed it to close at the day’s high of 1,556.19. Chart-wise, the FBM KLCI formed a bullish white candlestick which confirmed the bottom reversal signal issued by the piercing-line candlestick formed on Tuesday. With the bullish up move yesterday, the key index is likely to continue its upward momentum to move higher to test the resistance of 1,560.

MACD has turned upward, indicating a pick up in the momentum. However, as the MACD is still below the signal line, the current upturn could be just a technical rebound. RSI (14) continued to move higher to 58.2, indicating the key index is turning mildly bullish. Stochastic, however, continued to slide lower to 45.7, indicating a continuation of the short term down cycle and the loss of strength. Readings from the indicators showed that the FBM KLCI is showing some signs of reversal, however, the strength are still not bullish yet, and hence, the current up move could be just part of a technical rebound in a short term downtrend.

Currently the FBM KLCI is still trapped within the short term downtrend channel which began on 1st June. The key index will have to close above 1,560 in order to breakout from this downtrend channel to move higher. The medium term trend is sideways, and the long term uptrend is still intact. Immediate overhead resistance zone is at 1,559 to 1,566, while the downside support zone is at 1,550 to 1,540.

Overnight, the Dow fell -178.84 points or -1.48% to close at 11,897.27. Today, the FBM KLCI is likely to trade within a range of 1,542 to 1,565.

This week's expected range: 1539 – 1569
Today’s expected range: 1542 – 1565

Resistance: 1559, 1562, 1565
Support: 1542, 1545, 1550

FBM KLCI - rebounded to close higher

Stocks on Bursa Malaysia closed slightly higher yesterday, supported by mild buying activities in selected blue-chips. The local bourse, in a range-bound trade since last week, saw the market barometer FBM KLCI closing 2.63 points higher at 1,548.51 after opening 0.17 point lower at 1,545.71. Gainers led losers by 388 to 331 while 329 counters closed unchanged. A total of 737.884 million shares worth RM1.209 billion changed hands compared to Monday's closing volume of 733.03 million shares valued at RM1.131 billion.

The FBM KLCI opened 0.17 point lower at 1,545.71 and fell to the intra-day low of 1,543.56 within the first thirty minutes. The key index then rebounded to touch the intra-day high of 1,551.83 before pulling back to close off high at 1,548.51 on profit-taking activity. Chart-wise, the FBM KLCI formed a piercing-line candlestick which is a bottom reversal candle pattern, and the key index is likely to continue its rebound today. The FBM KLCI is currently in short term downtrend, and it will have to close above the 1,558 level in order to reverse the current downtrend.

MACD continued to slide lower after crossing over its signal line, indicating a continuous loss in momentum. RSI (14) has hooked upward to 53.1, reflecting the rebound and the relative market strength of the key index is currently in the neutral zone. Stochastic continued to slide lower, indicating the short term down cycle is still in force and the weakening of the short term market strength. Readings from the indicators showed that the FBM KLCI is currently in a consolidation mode and may continue to remain so until a clear signal of bullish reversal is observed.

The short term trend of the FBM KLCI is currently down, while the medium term trend remained sideways, and the long term trend, however, is still up. Immediate overhead resistance zone is at 1,552 to 1,560, and the downside support zone is at 1,540 to 1,530. With the overall volume traded remained below 1 billion shares, the overall market is likely to remain sluggish.

Overnight, the Dow rose +123.14 points or +1.03% to close at 12,076.11. Today, the FBM KLCI is likely to trade within a range of 1,536 to 1,560.

This week's expected range: 1539 – 1569
Today’s expected range: 1535 – 1560

Resistance: 1552, 1556, 1560
Support: 1535, 1539, 1544

FBM KLCI - back to consolidation

Stocks on Bursa Malaysia closed lower yesterday with losses in key blue chips dragging down the benchmark index following the heavy losses on Wall Street last Friday. Market sentiment was bearish due to rising concerns over slower economic growth across the globe. The FBM KLCI lost 10.31 points or 0.66% to close at the day’s low of 1,545.88 after opening 4.48 points lower at 1,551.71, Losers led gainers by 549 to 206 while 271 counters closed unchanged. A total of 733.03 million shares valued at RM1.131 billion changed hands compared with 783.016 million shares worth RM1.298 billion on Friday.

Taking cue from the poor performance of Wall Street last Friday, the FBM KLCI opened with a down gap of 4.48 points at 1,551.71 and rebounded slightly to hit the intra-day high of 1,552.60 before selling pressure continue to press the key index lower to finish at the day’s low of 1,545.88. Chart-wise, the FBM KLCI formed a bearish black candlestick which indicates sellers were in full control of the day, and the key index is likely to continue its down trend to move lower today. With the down move yesterday, the FBM KLCI has again fall back into the consolidation triangle, and the consolidation process may prolong.

MACD has made a dead-cross over the signal line, issuing a sell signal for the FBM KLCI. However, as the MACD is still above the zero-line, the present weakness could be just part of the consolidation process. RSI (14) dipped lower to 51.2, indicating the key index has now turned neutral. Stochastic has hooked downward to 60.9, indicating the short term down cycle is in continuation. Readings from the indicators showed that the FBM KLCI has turned weak, and the weakness may continue for a while until positive sign is seen.

The short term trend of the FBM KLCI has now turned southward, while the medium term trend remained sideways. The long term trend is, however, still up. Immediate overhead resistance zone is at 1,551 to 1,560, and the downside support zone is at 1,540 to 1,530. With the current volume remained on the low side, the FBM KLCI is likely to continue drifting sideways.

Overnight, the Dow made a marginal gain of +1.06 points or +0.01% to close at 11,952.97. Today, the FBM KLCI is likely to trade within a range of 1,536 to 1,560.

This week's expected range: 1539 – 1569
Today’s expected range: 1536 – 1560

Resistance: 1551, 1555, 1560
Support: 1536, 1541, 1543

Stocks to watch: BJCORP, LAYHONG

FBM KLCI - likely to extend consolidation

Stocks on Bursa Malaysia ended mixed last Friday with gains in heavyweight stocks supported the benchmark FBM KLCI to close 5.3 points higher at 1,556.19, after touching a high of 1,558.53 in active trading. Week-on-week, the key index was down 3.66 points from the previous Friday’s close of 1,559.85. Gainers outpaced losers by 393 to 313 while 335 counters were unchanged. Daily turnover climbed to 783.016 million shares valued at RM1.298 billion from 697.436 million shares worth RM1.362 billion recorded on Thursday. However, weekly volume declined to 3.674 billion shares valued at RM6.608 billion from previous week’s 4.072 billion shares worth RM9.827 billion.

The FBM KLCI was basically in consolidation mode last week which saw the benchmark index traded in narrow range. The key index opened the week on a weak note at 1,556.24 and faced selling pressure which pushed it the hit the intra-week low of 1,548.30 on Tuesday. The key index stayed almost unchanged on Wednesday, while on Thursday, it fell a marginal 0.9 point. On Friday, the key index rebounded to touch the intra-week high of 1,558.53 before pulling back to close off high at 1,556.19.

On the weekly chart, the FBM KLCI formed a Doji candlestick in Harami position which indicates indecision of the key index’s direction for last week, and the key index is likely to continue its consolidation this week until a clear sign of breakout is seen. On the daily chart, the FBM KLCI formed a small white candlestick which indicates low volatility. As the up move on Friday was not strong enough to break through the resistance at 1,560, the key index is likely to remain range-bound for the coming week.

Weekly MACD was higher, but is still below the weekly signal line, indicating the weekly momentum is gradually picking up but has not fully turned bullish. Daily MACD has turned upward slightly, indicating a slight pick up in the daily momentum after falling consecutively for four day. Weekly RSI (14) has hooked downward to 59.3, falling back to the mildly bullish zone, while the daily RSI (14) has hooked upward to 60, moving into the bullish zone. Weekly Stochastic was higher at 87.9, moving into the short term overbought zone. The daily Stochastic has hooked upward to 67.1 and is just touching the daily slow stochastic line. Mixed readings of the weekly and daily indicators showed that the FBM KLCI is in a consolidation mode with a slight upward bias.

The FBM KLCI is currently closing above all the moving averages which indicate the key index is on an uptrend for the short term. The medium term trend is sideways while the long term uptrend is still intact. Immediate overhead resistance zone is at 1,559 to 1,566 and the downside support zone is at 1,550 to 1,540. With the daily overall volume traded remained below the one billion shares mark, the overall market is likely to extend its consolidation.

Last Friday, the Dow fell -172.45 points or -1.42% to close at 11,951.91. This week, the FBM KLCI is likely to trade within a range of 1,539 to 1,569, and for today it is likely to trade within a range of 1,548 to 1,564.

This week's expected range: 1539 – 1569
Today’s expected range: 1548 – 1564

Resistance: 1559, 1562, 1564
Support: 1548, 1550, 1553

FBM KLCI - lower in quiet trading

Stocks on Bursa Malaysia ended lower yesterday, dragged down by losses in selected blue-chips in tandem with the regional bourses following the bearish sentiment in US market. The FBM KLCI fell by 0.9 point to close at 1,550.89. Losers outpaced gainers by 374 to 330 while 347 counters were unchanged. Turnover fell to 697.436 million shares worth RM1.362 billion from Wednesday’s 852.144 million shares worth RM1.636 billion.

The FBM KLCI opened with an up gap of 2.31 points at 1,554.10 and surged to the intra-day high of 1,555.49 within the first fifteen minutes. The key index then pulled back and fluctuated in a narrow range in the positive zone for a major part of the day. However, last hour profit-taking on selected key heavyweights pushed the key index to close in the negative territory. Chart-wise, the FBM KLCI formed a dark-cloud-cover candlestick pattern, which is a top reversal pattern, and the key index might continue to move lower today. The key index is now sitting right on the psychological support level of 1,550, and a break below this level is likely to see the key index sliding lower towards the next level of support at 1,548 and 1,544.

MACD continued to slide lower, indicating a continuous loss of momentum; nonetheless, it is still above the signal line, thus, the present weakness should be viewed as just a correction. RSI (14) fell marginally to 56.4, indicating a continued loss in the market strength. Stochastic is marginally lower at 63.6, indicating the short term down cycle is still in force. Readings from the indicators showed that the FBM KLCI is currently undergoing a short term consolidation process, the underlying market strength is, nonetheless, still positive.

The short and medium term trend of the FBM KLCI is currently sideways, while the long term uptrend is still intact. Immediate overhead resistance zone is at 1,556 to 1,566, and the immediate downside support zone is at 1,548 to 1,540. With the volume continued to stay low, the FBM KLCI is likely to continue with its consolidation, while the second and third liners may continue to be in rotational play.

Overnight, the Dow rose +75.42 points or +0.63% to close at 12,124.36. Today, the FBM KLCI is likely to trade within a range of 1,544 to 1,558.

This week's expected range: 1520 – 1591
Today’s expected range: 1544 – 1558

Resistance: 1554, 1556, 1558
Support: 1544, 1546, 1549

FBM KLCI - almost unchanged

Stocks on Bursa Malaysia ended marginally lower yesterday but the undertone of the market remained firm. Although regional markets were mostly in the red, following the overnight downtrend in Wall Street, but the local bourse was still quite attractive. The FBM KLCI came off 0.1 of a point to 1,551.79, after touching a high of 1,553.83 in active trading yesterday. Gainers outpaced losers by 380 to 309 while 336 counters were unchanged. Turnover increased to 852.144 million shares, valued at RM1.636 billion, from Tuesday’s 705.809 million shares, worth RM1.339 billion.

The FBM KLCI opened 1.39 point lower at 1,550.50 and slid to the intra-day low of 1,549.89 within the first five minutes. It rebounded to hit the intra-day high of 1,553.83, and selling pressure which appeared in late afternoon push the key index to close marginally lower at 1,551.79. Chart-wise, the FBM KLCI formed a small white spinning-top candlestick which indicates indecision of market direction. In fact, the FBM KLCI was traded in a narrow range in consolidation mode. An upside breakout above 1,554 may see it rally towards 1,560, while a downside breakout below 1,548 may see it sliding lower towards 1,540. The critical downside support is at 1,530, provided by the uptrend line.

MACD continued to slid lower, indicating a continuous loss of momentum. However, as the MACD is still above its signal line, the current state of weakness is considered as just a short term correction. RSI (14) was almost flat at 57.2, reflecting the sideways condition of the key index. Stochastic is lower at 64.6, reflecting the continued weakness of the key index. Readings from the indicators showed that the FBM KLCI is currently in a state of consolidation.

The FBM KLCI is currently sideways for the short and medium term, while the long term uptrend is still intact. Immediate overhead resistance zone is at 1,554 to 1,566 while the immediate downside support zone is at 1,548 to 1,540. With the gradual improvement in volume, the overall market is likely to gradually pick up strength while the benchmark FBM KLCI may continue to consolidate.

Overnight, the Dow fell -21.87 points or -0.18% to close at 12,048.94. Today, the FBM KLCI is likely to trade within a range of 1,544 to 1,558.

This week's expected range: 1520 – 1591
Today’s expected range: 1545 – 1558

Resistance: 1554, 1556, 1558
Support: 1545, 1547, 1549

FBM KLCI - marginally lower on continued profit-taking

Stocks on Bursa Malaysia closed on a mixed note yesterday helped by gains in plantation and finance stocks. The FBM KLCI ended the day 0.25 point or 0.02% lower at 1,551.89 after opening 0.58 point lower at 1,551.56. Gainers outpaced losers by 428 to 297 while 324 counters were unchanged. Turnover increased to 705.809 million shares worth RM1.339 billion million from 635.332 million shares worth RM972.527 million on Monday.

The FBM KLCI opened 0.58 point lower at 1,551.56 and rebounded to the intra-day high of 1,553.05 within the first five minutes. However, profit-taking activities pushed the key index to the intra-day-low of 1,548.30 before rebounding to close off low at 1,551.89. Chart-wise, the FBM KLCI formed a Doji candlestick with a longer lower shadow, which indicates sellers were initially strong in pushing down the index, but buyers later appeared to push up the index. The appearance of Doji candlestick after a down move indicates indecision of the market direction. The FBM KLCI continued to close below the downtrend line which is now at 1,555. A breakout above the 1,555 level would see the key index moving higher; otherwise, it is likely to remain trapped in the triangle.

MACD is sliding lower, and so is the histogram, indicating a loss in the momentum. RSI (14) was slightly lower at 57.3 reflecting the consolidation. Stochastic continued to slide lower to 71.2, indicating a continued loss in market strength. Readings from the indicators showed that the FBM KLCI had moved into consolidation mode.

The FBM KLCI is now closing below the 5-day moving average (MA) but is above the 10-day MA which is now at 1,550. A close of the key index below the 10-day MA or the important 1,550 psychological support would see the index sliding further downward. The FBM KLCI is now in sideways consolidation for the short and medium term while the longer term trend is still up. Immediate overhead resistance zone is at 1,555 to 1,566, while the immediate downside support zone is at 1,548 to 1,541. With the volume remained low, the FBM KLCI is likely to continue its sideways consolidation while some of the second and third liners may continue to remain active.

Overnight, the Dow fell -19.15 points or -0.16% to close at 12,070.81. Today, the FBM KLCI is likely to trade within a range of 1,544 to 1,558.

This week's expected range: 1520 – 1591
Today’s expected range: 1544 – 1558

Resistance: 1554, 1556, 1558
Support: 1544, 1546, 1549

FBM KLCI - lower on profit-taking

Stocks on Bursa Malaysia finished lower yesterday as losses in plantation and finance stocks pressured the broader market. The FBM KLCI ended 7.71 points or 0.49% lower at 1,552.14 after opening 3.61 points lower at 1,556.24. Losers outpaced gainers by 454 to 261 while 316 counters were unchanged. Turnover increased to 635.332 million shares, worth RM972.527 million, compared with last Friday's 581.943 million shares valued at RM1.038 billion.

The FBM KLCI opened with a down gap of 3.61 points at 1,556.24 and traded lower in the negative territory for the rest of the day. It touched the intra-day low of 1,551.85 before rebounding slightly to close at 1,552.14. Chart-wise, the FBM KLCI formed a black candlestick which confirmed the possible reversal signal issued by the Doji candlestick formed on Friday. With the down move yesterday, the FBM KLCI has fallen below the downtrend line and is back to the consolidation triangle, and hence, the sideways consolidation process is likely to be extended.

MACD has started to turn downward, reflecting the correction of the key index yesterday. RSI (14) hooked downward to 57.5, indicating the FBM KLCI has turned mildly bullish from bullish last week. Stochastic is at 76.3 and has crossed below the slow stochastic line, indicating a possible beginning of a short term down cycle. Readings from the indicators showed that the FBM KLCI is undergoing a correction after a short rally over the last eight days.

The FBM KLCI has closed below the short term 5-day moving average (MA), and is likely to move lower to test the support of the 10-day MA at 1,548. The short term trend, nonetheless, is still up. The medium term trend remained sideways, while the long term uptrend is still intact. Immediate overhead resistance zone is at 1,556 to 1,566 while the immediate downside support zone is at 1,550 to 1,540. With the total volume traded remained low, the FBM KLCI is likely to further consolidate while the overall market is expected to remain quiet.

Overnight, the Dow fell -61.30 points or -0.50% to close at 12,089.96. Today, the FBM KLCI is likely to trade within a range of 1,545 to 1,562.

This week's expected range: 1520 – 1591
Today’s expected range: 1545 – 1562

Resistance: 1556, 1559, 1562
Support: 1545, 1548, 1550

FBM KLCI - range-bound with an upward bias

Stocks on Bursa Malaysia moved sideways to close mixed on last Friday as most investors stayed on the sidelines on lack of fresh leads and many were absent during school holidays. Last-minute buying, particularly of plantation and finance counters, pushed the FBM KLCI to close firmer which ended the week 1.81 points or 0.12% higher at 1,559.85, and week-on-week, it gained 11.16 points from previous Friday’s close of 1,548.69. Gainers led losers by 376 to 335 while 326 counters were unchanged. Daily turnover dropped to 581.943 million shares valued at RM1.038 billion from Thursday’s 716.728 million shares worth RM1.483 billion, and weekly volume declined to 4.072 billion shares worth RM9.827 billion from 4.197 billion shares worth RM7.321 billion the previous week.

Bursa Malaysia was generally in cautious mood last week with sideways trading prevailing in the market. The benchmark FBM KLCI opened 1.38 points higher at 1,550.07 on last Monday, but heavy profit-taking activities pressed it to the intra-week low of 1,541.50 before rebounding strongly to touch the intra-week high of 1,566.29 on Tuesday. On Wednesday, the key index shed 1.87 points to 1,556.42, but rebounded 1.62 points to close at 1,558.04 on Thursday in quiet trading. The FBM KLCI continued to rise another 1.81 points to 1,559.85 on Friday in one of the lowest trading volume day for the year.

On the weekly chart, the FBM KLCI formed a white spinning-top like candlestick which indicates the bulls were gaining control for the week and pushed the index higher. It touched the immediate key resistance level of 1,566 but pulled back on profit-taking. For the coming week, if the key index can push through this resistance level convincingly with volume, it might then move higher to challenge the historical high level of 1,576.95. Otherwise, it is likely to stay range-bound in view of the extremely low volume registered last Friday.

On the daily chart, the FBM KLCI formed a Doji candlestick with a long lower shadow, indicates the key index was subjected to selling pressure but a last minute recovery helped to push the key index back to the positive territory. The formation of Doji candlestick near the key resistance area also indicates that the market was undecided of its direction, and this may forewarn of a possible reversal.

Weekly MACD continued to climb higher, indicating the weekly momentum is gradually picking up but has not turn fully bullish yet until its crosses above the signal line; Daily MACD continued to climb higher, indicating a continuation in the daily upward momentum. Weekly RSI (14) continued to climb higher to 60.3, and has just entered the bullish zone. Daily RSI (14) gained marginally to 63.8 and is higher into the bullish zone. Weekly Stochastic continued to climb higher to 82.9, and is into the short term overbought zone, indicating strong weekly market strength. Daily Stochastic, however, was marginally higher at 79.8, and has crossed above its slow stochastic line. Signals from the indicators showed that the FBM KLCI is currently short term bullish, and hence may continue its upward momentum to climb higher.

The short term trend of the FBM KLCI is currently up, while the medium term trend is still sideways, and the long term uptrend remained intact. Immediate overhead resistance zone is at 1,566 to 1,577, while the immediate downside support zone is at 1,550 to 1,541. In view of the very low trading volume, the market is likely to remain range-bound with an upward bias.

Last Friday, the Dow fell -97.29 points or -0.79% to close at 12,151.26. This week, the FBM KLCI is likely to trade within a range of 1,520 to 1,591, and for today it is likely to trade within a range of 1,548 to 1,569.

This week's expected range: 1520 – 1591
Today’s expected range: 1548 – 1569

Resistance: 1563, 1566, 1569
Support: 1548, 1551, 1555

FBM KLCI - higher on last minute buying

Stocks on Bursa Malaysia closed on an easier note yesterday in line with the weaker regional markets. Asian stocks fell with investors spooked by a sell-off on Wall Street overnight and soft data from major economies that have put a damper on risk-taking. The benchmark FBM KLCI, however, edged into positive territory, spurred by mild interest on selected blue chips. The FBM KLCI rose by 1.62 points or 0.1% to close at 1,558.04, after opening 4.49 points lower at 1,551.93. Losers led gainers by 459 to 250 while 338 counters were unchanged. Turnover declined to 716.728 million shares worth RM1.483 billion from 795.164 million shares valued at RM1.735 billion on Wednesday.

The FBM KLCI opened with a down gap of 4.49 points following the poor performance of Wall Street overnight. The key index fell to the intra-day low of 1,550.37 within the first twenty minutes and rebounded. It moved higher gradually but stayed in the negative territory for a major part of the day, and a last minute buying of selected blue-chips helped pushed the key index to close in the positive zone. Chart-wise, the FBM KLCI formed a white piercing-line candlestick which indicates counter-attack by the bulls after the initial fear on opening. As the key index is able to close above the downtrend line after piercing through it, there is a good chance that it might continue its upward momentum to move higher. However, the main resistance zone is at 1,561 to 1,566.

MACD continued to move higher, indicating a continuation in the upward momentum. RSI (14) hooked up slightly to 62.9, indicating the key index is still short term bullish. Stochastic has hooked up slightly to 78.5, but is still below its slow stochastic line and the 80 level reflecting the mild rebound. Readings from the indicators showed that the FBM KLCI is still short term bullish, and may continue to move higher to challenge previous highs.

The short term trend of the FBM KLCI is currently up, while the medium term trend is still sideways, and the long term uptrend remained intact. Immediate overhead resistance zone is at 1,561 to 1,566 while the downside support zone is at 1,550 to 1,544. With the relatively low volume, the FBM KLCI is likely to remain range bound with an upward bias.

Overnight, the Dow rose +128.21 points or +1.03% to close at 12,569.79. Today, the FBM KLCI is likely to trade within a range of 1,545 to 1,566.

This week's expected range: 1508 – 1576
Today’s expected range: 1545 – 1566

Resistance: 1561, 1564, 1566
Support: 1545, 1547, 1552

FBM KLCI - lower on mild profit-taking

Stocks on Bursa Malaysia finished easier yesterday as losses in Maybank and CIMB put pressure on the broader market. Maybank and CIMB continued to lose shine, losing 14 sen and two sen to RM8.77 and RM8.35 respectively after expressing their interest to merge with RHB Capital. The FBM KLCI shed 1.87 points or 0.12% to 1,556.42 after opening 2.72 points higher at 1,561.01. Losers outpaced gainers by 494 to 280 while 288 counters traded unchanged. Turnover decreased sharply to 795.164 million shares valued at RM1.735 billion from 1.296 billion shares valued at RM4.279 billion on Tuesday.

The FBM KLCI opened 2.72 points higher at the day’s high of 1,561.01 and slid lower on profit-taking after a strong up move on Tuesday. The key index was trading in the negative territory for most part of the day and hit the intra-day low of 1,553.98 before rebounding to close off low at 1,556.42. Chart-wise, the FBM KLCI formed a dark-cloud-cover candlestick pattern which indicates profit-taking by the bears. The key index is staying above the critical downtrend line resistance which turned support at 1,554, if it breaks below this level, it would falls back to the consolidation range.

MACD continued to move higher, indicating a continuation of the upward momentum. RSI (14) hooked downward slightly to 62.2, reflecting the mild profit-taking; it is however still in the bullish zone. Stochastic is at 77.4, has turned downward and crossed below the 80 level as well as the slow stochastic line, indicating weakness is surfacing and the probable beginning of a short term down cycle. Mixed signals from the indicators showed that the FBM KLCI may go into consolidation.

The short term trend of the FBM KLCI is still up as it is closing above all the short term moving average, the medium term trend remained sideways while the long term uptrend is still intact. Immediate overhead resistance zone is at 1,561 to 1,566 while the downside support zone is at 1,554 to 1,540 with 1,550 being the critical support. With the drastically reduced volume, the market is likely to remain in consolidation mode.

Overnight, the Dow rose +128.21 points or +1.03% to close at 12,569.79. Today, the FBM KLCI is likely to trade within a range of 1,546 to 1,568.

This week's expected range: 1508 – 1576
Today’s expected range: 1546 – 1568

Resistance: 1561, 1565, 1568
Support: 1541, 1550, 1553

FBM KLCI - bullish breakout

Stocks on Bursa Malaysia closed higher yesterday on late buying of blue chips, particularly finance and plantation-related stocks. Sentiment was fuelled by gains in Asian bourses following the release of Japan's April industrial production data which rose 1 per cent for April compared with March. The FBM KLCI rose 15.45 points or 1% to end at 1,558.29, after opening 1.34 points lower at 1,541.5. Gainers led losers by 473 to 346 while 285 counters were unchanged. Turnover increased to 1.296 billion shares, valued at RM4.279 billion, compared with 681.366 million shares worth RM1.241 billion on Monday.

The FBM KLCI opened 1.34 points lower at 1,541.50 and rebounded to the morning session high of 1,551.97 within the first forty minutes and hovers in the 1,550 region throughout the rest of morning session. The benchmark index started to move higher after the opening bell in the afternoon session and surged to the intra-day high of 1,566.29 before profit-taking pressed it to close off high at 1,558.29. Chart-wise, the FBM KLCI formed a bullish engulfing candlestick which is a strong reversal signal after a day of pullback on Monday. With this strong up move, the FBM KLCI has breakthrough both the 1,550 psychological resistance and the 1,555 downtrend line resistance levels, and is likely to continue its upward momentum to climb higher to re-test the historical high of 1,576.95 registered on 6th Jan 2011. However, immediate strong overhead resistance level is at 1,565.

MACD surged higher, indicating a strong increase in the upward momentum. RSI (14) reversed up to 63.6, indicating the key index had regained its bullishness. Stochastic is at 83.6 which indicates a strong market strength, and continued to climb higher into the short term overbought zone. Readings from the indicators showed a changed in the market momentum from neutral to strong, and thus the FBM KLCI is likely to continue to climb higher.

The short term trend of the FBM KLCI remained up, and the medium term trend is still sideways, while the long term uptrend is intact. Immediate overhead resistance zone is now at 1,566 to 1,577, while the downside support is at 1,541 to 1,530.

Overnight, the Dow rose +128.21 points or +1.03% to close at 12,569.79. Today, the FBM KLCI is likely to trade within a range of 1,519 to 1,591.

This week's expected range: 1508 – 1576
Today’s expected range: 1519 – 1591

Resistance: 1570, 1581, 1591
Support: 1519, 1530, 1544