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
No comments:
Post a Comment