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
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