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
No comments:
Post a Comment