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
1 comment:
Hey Dali & all bloggers in town ,
This is the call of EAH @ 0.51 made by dali-san last month>
http://malaysiafinance.blogspot.com/2011/04/watch-this-stock-closely.html
May I know, should I cut loss or hold on EAH ? it is now @ 0.38cts which is > 30% down from my cost .
can anynone answer for dali in case he refuse to give me the answer ?
how about u moolah ? can tell or u wanna to cover yr buddy dali-san ?
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