FBM KLCI - short term trend turned upward

Stocks on Bursa Malaysia ended broadly higher yesterday in tandem with the rebound on other Asian equity markets, driven by hope that German authorities would approve an increase in Euro zone rescue funds. The FBM KLCI closed 15.91 points or 1.16% higher at 1,387.46 after opening at 1,361.43. Gainers beat losers by 513 to 229 with 228 counters unchanged. Turnover was higher at 920.957 million shares, worth RM1.366 billion, from 850.054 million shares, worth RM1.517 billion, registered on Wednesday.

Taking cue from the weak performance of Wall Street overnight, the FBM KLCI opened with a down gap of 10.12 points at 1,361.43 and slid to the intra-day low of 1,357.95 within the first ten minutes. The key index then rebounded and moved upward gradually to touch the intra-day high of 1,388.55 before settling at 1,387.46. Chart-wise, the FBM KLCI formed a bullish white candlestick which indicates buyers were in control for the day. The key index had managed to breakthrough the resistance zone at 1,377 to 1,387 formed by the down gap, and is likely to continue with its upward momentum to test the next higher resistance of 1,400-point.

MACD has turned upward, indicating an increase in the upward momentum. Nonetheless, as the MACD is still below the zero-line as well as the signal-line, the present up swing may just be part of a short term technical rebound. RSI (14) continued to move higher to 38.7 from 33.4 previously, indicating a positive improvement in the short term relative strength, even though it is still in the bearish zone. Stochastic continued its upward move to 37.6, indicating a continuation in the short term up cycle. Readings from the indicators showed that the FBM KLCI is gradually turning positive, even though the broad picture is still rather bearish.

The main trend of the FBM KLCI remained down. However, the immediate short term trend of the FBM KLCI has turned upward after it cross the short term 5-day moving average (MA) a day earlier. It is now sitting right below the 10-day MA resistance of 1,388, and a cross above this resistance level will likely see the FBM KLCI moving towards the next higher target zone of 1,400 to 1,420. Immediate downside support zone is at 1,377 to 1,357.

The equity market is likely to continue its uptrend today as German lawmakers rallied behind Chancellor Angela Merkel to approve a stronger Euro zone bailout fund on Thursday. Overnight, the Dow rose +143.08 points or +1.30% to close at 11,153.98. Today, the FBM KLCI is likely to trade within a range of 1,336 to 1,420.

This week's expected range: 1263 – 1461
Today’s expected range: 1336 – 1420

Resistance: 1398, 1409, 1420
Support: 1336, 1347, 1367

FBM KLCI - higher in cautious trade

Stocks on Bursa Malaysia closed marginally higher yesterday on gains in selected heavyweights. Cautious sentiments, however, still prevailed in Asian markets as investors awaited news of a concrete resolution to Europe's debt crisis, particularly in Greece. The FBM KLCI gained 7.35 points or 0.54% to close at 1,371.55. It opened 3.20 points higher at 1,367.40. Gainers outnumbered losers by 407 to 304 while 275 counters were unchanged. Turnover fell to 850.054 million shares worth RM1.517 billion from 908.813 million shares worth RM1.595 billion on Tuesday.

The FBM KLCI opened 3.20 points higher at 1,367.40 but profit-taking activity sent it to the intra-day low of 1,353.38 within the first twenty minutes. The key index then rebounded and gradually recovered the lost ground to touch the intra-day high of 1,373.64 before settling at 1,371.55. Chart-wise, the FBM KLCI formed a white hanging-man candlestick which is a top reversal pattern. The long lower shadow showed selling pressure by the short term players as the market is still very unstable. It also shows a loss in the upward momentum, and hence, the key index is likely to take a pause to consolidate its gain.

MACD has hooked up slightly and the histogram also turned shorter upward, indicating a reduction in the downward momentum, but is still too early to see any positive momentum gain yet. RSI (14) was higher at 33.4, reflecting a gain in the relative strength, but the key index is still in the bearish zone. Stochastic was higher at 26.7, indicating a continuation in the up swing. Readings from the indicators showed that the FBM KLCI is taking a pause from its recent down move, but is still too early to say whether the key index has bottom out.

The main trend of the FBM KLCI remained down. However, for the first time in two weeks, the key index has closed above the very short term 5-day moving average (MA), indicating a possible continuation in the short term up swing, but the upward move is likely to face with heavy overhead resistances. Immediate overhead resistance zone is at 1,373 to 1,400, while the immediate downside support zone is at 1,353 to 1,339. Overnight, the Dow fell -179.79 points or -1.61% to close at 11,010.90. Today, the FBM KLCI is likely to trade within a range of 1,338 to 1,394.

This week's expected range: 1263 – 1461
Today’s expected range: 1338 – 1394

Resistance: 1379, 1387, 1394
Support: 1338, 1345, 1358

FBM KLCI - a strong rebound

Stocks on Bursa Malaysia ended broadly higher yesterday, trimming three days of consecutive losses, in tandem with the overnight recovery on Wall Street that was prompted by renewed hopes that European officials would take bold steps to resolve the debt crisis. The FBM KLCI gained 32.40 points or 2.43% to end at 1,364.20 after opening 7.55 points better at 1,339.35. Gainers outnumbered losers by 658 to 162 while 223 counters were unchanged. Turnover decreased to 908.81 million shares, worth RM1.59 billion, from 1.04 billion shares worth RM1.78 billion on Monday.

Taking cue from the strong overnight gain on Wall Street, the FBM KLCI opened 7.55 points higher at 1,339.35 and continued to move higher throughout the day with intermittent minor pullback on profit-taking, it hit the intra-day high of 1,367.55 before settling at 1,364.20. Chart-wise, the FBM KLCI formed a bullish white candlestick which indicates buyers were in control for the day on strong buying momentum. Nonetheless, the strong up move yesterday is considered merely a technical rebound in a deeply oversold market, as the main trend is still down. In order to reversed the current down trend, the FBM KLCI must at least move above the short term 30-days moving average (MA) which is currently at 1,450-point level, and is still a way long to go. The first important hurdle to cross now is the 1,400-point psychological resistance level.

MACD was lower but was tapering off. The histogram, however, has turned shorter upward, indicating a reduction in the bearish momentum. RSI (14) has made a strong rebound to 30.8 from 17.9 a day earlier. As it was mentioned yesterday, the market was expected to stage a rebound when the RSI (14) drop below the 20-point level, and it did. Stochastic also moved upward to 17.8 after hovering at 7-point for two days, indicating a possible beginning of the short term up cycle. Readings from the indicators showed that the FBM KLCI is currently undergoing a rebound, and the upward momentum may be able to carry the key index higher today.

The main trend of the FBM KLCI remained down. Nonetheless, after a long downtrend and deeply oversold, the key index may stage a rebound rally towards the mean level at 1,400, and could this lead into a pre-budget rally? The market shall give the answer. Immediate strong overhead resistance zone is envisaged at 1,378 to 1,400-point level, while the downside support zone is at 1,339 to 1,310. Overnight, the Dow rose another +146.83 points or +1.33% to close at 11,190.69. Today, the FBM KLCI is likely to trade within a range of 1,328 to 1,396.

This week's expected range: 1263 – 1461
Today’s expected range: 1328 – 1396

Resistance: 1375, 1386, 1396
Support: 1328, 1346, 1354

FBM KLCI - sharply lower on heavy selling pressure

Stocks on Bursa Malaysia ended sharply lower yesterday amid persistent selling of heavyweight stocks such as Maybank. Investors took the cue from Wall Street's plunge last week and the weak sentiment in regional markets, and continuing concerns over the global economy plagued markets in Asia. The FBM KLCI closed 34.14 points or 2.50% lower at 1,331.80 after opening 8.20 points easier at 1,357.74. It was the third worst performer among major indices in Asian markets after the Jakarta Composite Index and South Korea's Kospi. Losers outnumbered gainers by 842 to 84 while 143 counters were unchanged. Turnover increased to 1.046 billion shares worth RM1.782 billion from 948.313 million shares worth RM1.846 billion on Friday.

The FBM KLCI opened with a down gap of 8.20 points at 1,357.74 and slid lower on persistent selling pressure. The key index hit the intra-day low of 1,310.53 soon after the market opened in the afternoon session, losing as much as 55.41 points at its worst before bargain hunting activity lifted it to close off low. Chart-wise, the FBM KLCI formed a bearish long black candlestick with a long lower shadow which indicates the bears were in control. As expected, the barometer slid rapidly towards the targets of 1,318 and 1,300 after it broke the critical support of 1,350, and there is still a strong likelihood that the key index will visit the critical 1,300 key psychological support level.

MACD continued to slide deeper into the negative zone, indicating an increased of the bearish momentum. RSI (14) plunged lower to 17.9, indicating a deeply oversold situation, and a rebound might be expected soon, as in the past whenever the RSI comes below the 20-point level a strong rebound took place. Stochastic was almost flat at 7.4, and continued to remain in the oversold zone. Readings from the indicators showed a very bearish and weak FBM KLCI. However, with the oscillators flashing an oversold situation, a rebound might be expected.

The trend remained down and is very bearish. As there are no bottoming signs observed yet, the FBM KLCI is likely to continue with its current downtrend with 1,300 as the next target level. Immediate downside support zone is at 1,318 to 1,300, while the immediate overhead resistance zone is at 1,350 to 1,378. Overnight, the Dow rose +272.38 points or +2.53% to close at 11,043.86. Today, the FBM KLCI is likely to trade within a range of 1,285 to 1,381.

This week's expected range: 1263 – 1461
Today’s expected range: 1285 – 1381

Resistance: 1350, 1358, 1381
Support: 1285, 1300, 1308

FBM KLCI - outlook remained bearish

Stocks on Bursa Malaysia ended broadly lower last Friday on persistent selling as investors continued to be wary of the gloomy global economy, amid continuing weaknesses on the global stock markets. The FBM KLCI failed to return to the 1,400 level, dragged down by losses mostly in key heavyweights like Maybank and MISC. The benchmark index, which opened 10.59 points lower at 1,377.22, ended the day 21.87 points or 1.58% lower to 1,365.94. On a week-on-week basis, it dropped 64.99 points or 4.54% from previous Thursday's closing of 1,430.93. The market was closed last Friday for Malaysia Day celebration. Losers outnumbered gainers by 624 to 187 while 230 counters were unchanged. Turnover increased to 948.313 million shares worth RM1.847 billion from Thursday's 874.105 million units valued at RM1.71 billion, and total weekly volume surged to 4.039 billion shares worth RM7.481 billion from 2.883 billion units valued at RM4.887 billion last Thursday.

The FBM KLCI opened 1.18 points higher at 1,432.11 on last Monday and touched the intra-week high of 1,433.81, but selling pressure which appeared pushed the key index to close at 1,413.12. On Tuesday, the benchmark index plunged to the intra-day low of 1,404.27 before rebounding to close 2.48 points lower at 1,410.64. The FBM KLCI rebounded to close 8.4 points higher at 1,419.04 on Wednesday, boosted by buying support from institutional fund managers in selected heavyweights. On Thursday, the key index failed to sustain Wednesday’s gain and plunged 31.23 points to close at the day’s low of 1,387.81, and the selling pressure continued into Friday which saw the FBM KLCI losing another 21.87 points to end the week at 1,365.94 after hitting the intra-week low of 1,358.47.

On the weekly chart, the FBM KLCI formed a long black candlestick with short lower shadow, which indicates heavy selling pressure throughout the week. The key index had breakthrough the 1,410-point support of the 26.3% Fibonacci retracement (FR) level without much struggle, and had even closed below the 120-week moving average, which showed that the FBM KLCI has turned long term bearish. After breaking the 23.6% FR support level, the benchmark index is expected to test the next lower target of 38.2% FR support level at 1,293 and beyond that would be the 50% FR level of 1,200-point, which is a highly probable target technically.

On the daily chart, the FBM KLCI formed a bearish black candlestick with a huge down gap, which showed that the market was falling on great fear on open, but mild bargain-hunting lifted the key index off low, and with the bearish down move, the key index is likely to fall further to test the next immediate support level at 1,350. After breaking the triangle on September 12th, the FBM KLCI is expected to have a downside target of 1,350 (as shown by the red vertical line), and it is coming near the target, as the low hit on last Friday was 1,358.47. The support level at 1,350 is crucial, if it cannot hold, then the FBM KLCI is likely to visit the next support zone at 1,318 to 1,300.

Weekly and daily MACD continued to plunge further, indicating an increased in the bearish momentum for the short and medium term. Weekly RSI (14) was lower at 26.3, while the daily RSI (14) was at 21.9, indicating a very bearish relative strength and is approaching the oversold level. Weekly Stochastic continued to slide lower to 10.3, while the daily stochastic was at 7.5, both indicates very weak market strength and is oversold. Readings from the weekly and daily indicators portrayed a very bearish picture of the FBM KLCI, and hence, the key index is likely to continue with the consolidation process for the near term until bottoming signs are observed. However, with both RSI and Stochastic flashing oversold signal, some form of rebound may be expected, but could be short-lived.

The trend of the FBM KLCI remained down and bearish. The question on many investors’ mind is whether now is the time to bottom fish? As there are no sign of bottom yet for the time being, it is advisable to stay sideline and hold cash at the moment, do watch until there is a strong bottom sign before taking a longer term position, any rebound or rally that may happen due to the oversold condition should be taken an opportunity to get out from the market. Immediate downside support zone is at 1,358 to 1,350, while the immediate overhead resistance zone is at 1,377 to 1,387.

Last Friday, the Dow rose +37.65 points or +0.35% to close at 10,771.48. This week, the FBM KLCI is likely to trade within a range of 1,263 to 1,461, and for today, it is likely to trade within a range of 1,338 to 1,396.

This week's expected range: 1263 – 1461
Today’s expected range: 1338 – 1396

Resistance: 1376, 1386, 1396
Support: 1338, 1348, 1357

FBM KLCI - closing below 1,400 on heavy selling pressure

Stocks on Bursa Malaysia closed sharply lower yesterday on selling in heavyweights, which dragged the FBM KLCI below the 1,400-point level. The market remained unimpressed and was skeptical that further US Federal Reserve (Fed) action was of any help to revive the stalling US economy and labour market. The FBM KLCI failed to sustain Wednesday’s gain with the benchmark index down 31.23 points, or 2.20%, to close at the day’s low of 1,387.81. Decliners thumped advancers by 802 to 85 while 162 counters were unchanged. Total market volume rose to 874.105 million units valued at RM1.71 billion from 708.059 million units valued at RM1.156 billion on Wednesday.

Taking cue from the 283 points decline of the Dow overnight, the FBM KLCI opened with a down gap of 5.99 points at 1,413.05 and slid lower throughout the day with intermittent weak rebound, it ended the day at the lowest point of 1,387.81. Chart-wise, the FBM KLCI formed a bearish long black Marubozu candlestick which indicates the bears were in total control for the day, and fear was in action. The strong down move yesterday has broken the support at 1,400 easily, and is likely to continue with its strong downward momentum to slide further southward, the next lower targets for the key index are 1,378, 1350, 1320 and 1300.

MACD continued to slide lower, indicating an increase of the bearish momentum. RSI (14) has re-hooked downward to 25.3 after a rebound to 31.7 the day before, indicating a very bearish relative strength for the key index. Stochastic is at 8.3 and has hooked downward, indicating very weak market strength. Readings from the indicators showed a very bearish picture of the FBM KLCI, and the key index is likely to continue with the current weakness for a while.

The trend of the FBM KLCI remained down and bearish, and the strong down move yesterday indicates that fears had set in and is likely to push the key index further southward. Immediate downside support zone is at 1,378 to 1,350, where at 1,350 the FBM KLCI may see some strong rebound, as it was a strong support / resistance level before. Overnight, the Dow fell -391.01 points or -3.51% to close at 10,733.83. Today, the FBM KLCI is likely to trade within a range of 1,354 to 1,438.

This week's expected range: 1380 – 1502
Today’s expected range: 1354 – 1438

Resistance: 1405, 1421, 1438
Support: 1354, 1370, 1379

FBM KLCI - a technical rebound

Stocks on Bursa Malaysia ended yesterday higher, boosted by buying support from institutional fund managers in selected heavyweights, amid rising fears over the weakening global economy. Sime Darby, the biggest contributor to the FBM KLCI yesterday, pushed the benchmark index up 8.4 points or 0.60% to end at 1,419.04. Advancers led decliners by 350 to 289 while 287 counters were flat. Total market volume fell to 708.059 million shares, worth RM1.156 billion, from Tuesday's 784.626 million units valued at RM1.418 billion.

The FBM KLCI opened 2.81 points higher at 1,413.45 but profit-taking pushed it down to the intra-day low of 1,408.73 within the first ten minutes. The key index then rebounded strongly and climb to the intra-day high of 1,422.35 before late afternoon profit-taking pulled it down to close off high. Chart-wise, the FBM KLCI formed a bullish white candlestick, together with the Doji formed a day earlier they formed the morning star bottom reversal pattern. However, as the candle yesterday could not close above the mid point of the long black candlestick at 1,423, the strength of the reversal is considered weak. As the main trend is still down, the up move yesterday may just be a technical rebound in a bear trend. If the rebound found no follow through, the key index might continue with its downtrend.

MACD was tapering off, while the histogram has turned slightly shorter upward, reflecting the rebound. RSI (14) has hooked upward to 31.7, reflecting the rebound, but is still in the bearish zone. Stochastic was higher at 9.7, and has crossed above its slow stochastic line, indicating a possible bottom reversal. Readings from the indicators showed that the FBM KLCI is undergoing a rebound, amid an overall bearish picture.

The trend of the FBM KLCI remained down and bearish. The up move yesterday may just be a technical rebound in a downtrend, and could be short lived. Immediate overhead resistance zone is at 1,423 to 1,442, while the immediate downside support zone is at 1,408 to 1,404. Overnight, the Dow fell -283.82 points or -2.49% to close at 11,124.84. Today, the FBM KLCI is likely to trade within a range of 1,397 to 1,436.

This week's expected range: 1380 – 1502
Today’s expected range: 1397 – 1436

Resistance: 1425, 1431, 1436
Support: 1397, 1403, 1411

FBM KLCI - taking a breather

Stocks on Bursa Malaysia continue to head south for the second consecutive day at close yesterday as investors reduced their holdings on growing fears over weakening global economy. Most losses were seen in Petronas Chemicals, which contributed about 6.471% of the total FBM KLCI weightage. The benchmark FBM KLCI lost 2.48 points or 0.18% to close at 1,410.64 after opening 3.11 points lower at 1,410.01. Losers led gainers by 457 to 230 while 301 counters were unchanged. Total market volume rose to 784.626 million units valued at RM1.418 billion from 724.373 million shares worth RM1.352 billion on Monday.

The FBM KLCI opened with a down gap of 3.11 points at 1,410.01 and plunged to the intra-day low of 1,404.27 within the first ten minutes. It then rebounded to the intra-day high of 1,412.53 and after that moved sideways within the day’s high and low range till closing. Chart-wise, the FBM KLCI formed a Doji candlestick with a longer lower shadow which indicates indecision of market direction and consolidation. The down gap indicates initial fear which caused the sell down, but later the fear gradually diminished and the key index settled near the opening price. The appearance of Doji after a long downtrend also indicates a pause in the bearish down move and a reversal might take place. The FBM KLCI has come to the 1,410-point target level predicted on August 8th, 2011 when the key index was still at 1,524. The current support levels at 1,410 and 1,400 are crucial, and a close below the 1,400-point psychological support level will likely see the FBM KLCI moving to the next lower target at 1,378.

MACD continued to slide lower, indicating an increase in the bearish momentum. RSI (14) is at 27.1, and has continued to fall further into the short term oversold zone, and is very bearish. Stochastic is at 5.15, and has hooked up, indicating a possible rebound. Readings from the indicators showed that the FBM KLCI is currently still very weak and bearish, but the stochastic indicator has shown a weak sign of a possible rebound ahead.

The trend of the FBM KLCI remained down and bearish. Immediate down support zone is at 1,404 to 1,400, while the immediate overhead resistance zone is at 1,413 to 1,423. With the appearance of a Doji yesterday, the FBM KLCI is likely to remain range-bound today. Overnight, the Dow gained +7.65 points or +0.07% to close at 11,408.66. Today, the FBM KLCI is likely to trade within a range of 1,397 to 1,421.

This week's expected range: 1380 – 1502
Today’s expected range: 1397 – 1421

Resistance: 1414, 1418, 1421
Support: 1397, 1400, 1405

FBM KLCI - downtrend continued

Stocks on Bursa Malaysia ended broadly lower yesterday on foreign selling as investors reduced their holdings amid the worsening European debt crisis. There were rumours in the market saying that Greece might default on its sovereign debt in few days as it might be unable to pay off two “sizeable” government bonds which are likely to be maturing in a couple of days. About US$1.2 billion foreign funds were taken out from Malaysia in August as foreign investors fled to safe-haven assets like the US dollar. The FBM KLCI dropped 17.81 points or 1.24% to close at 1,413.12, after opening 1.18 points higher at 1,432.11. Losers outnumbered gainers by 496 to 218 while 233 counters were unchanged. Turnover eased to 724.373 million shares worth RM1.352 billion from 729.269 million shares valued at RM1.529 billion on last Thursday.

The FBM KLCI opened 1.18 points higher at 1,432.11 and moved to the intra-day high of 1,433.81 within the first five minutes. Selling pressure immediately appeared and pushed the key index lower throughout the day with intermittent weak rebound to the intra-day low of 1,411.80 before settling at 1,413.12. Chart-wise, the FBM KLCI formed a long black candlestick which indicates heavy selling pressure and the bear was fully in control. The key index had broken the critical support at 1,423 as well as the 50% Fibonacci Retracement (FR) support level at 1,420, measuring from 1,243 on 27/5/2010 to 1,597 on 11/7/2011, and is likely to continue its southward journey to the next lower target levels at 1,400 and the 61.8% FR support level at 1,378.

MACD continued to slide lower after making the dead-cross, indicating an increase in the bearish momentum. RSI (14) fell lower to 27.6, indicating the short term relative strength is turning very bearish. Stochastic is at 2.96, had continued to slide deeply into the oversold zone, indicating a very weak market. Readings from the indicators showed a very bearish and weak FBM KLCI, and the correction process is likely to extend.

The trend of the FBM KLCI remained down and bearish. Now that it has broken the critical support at 1,423, it is likely to slide lower to test the next lower support zone of 1,400 to 1,378. Immediate overhead resistance zone is at 1,420 to 1,433. Overnight, the Dow fell -108.08 points or -0.94% to close at 11,401.01. Today, the FBM KLCI is likely to trade within a range of 1,383 to 1,456.

This week's expected range: 1380 – 1502
Today’s expected range: 1383 – 1456

Resistance: 1428, 1442, 1456
Support: 1383, 1397, 1405

FBM KLCI - bearish outlook with possible rebound

Stocks on Bursa Malaysia ended last Thursday’s trading on a weak note, as heavy selling in blue-chips dampens trading on Bursa Malaysia and pushed it to finish easier, ahead of the Malaysia Day holiday on Friday. The FBM KLCI dropped 6.68 points or 0.46% to 1,430.93 after opening 5.06 points higher at 1,442.67, and week-on-week, it lost 38.19 points, or 2.6% from 1,469.12 previously. Sime Darby, which fell 47 sen to RM8, was affected by the Securities Commission’s investigation into its acquisition of a 30 per cent stake in property developer Eastern & Oriental Bhd. Losers beat gainers by 393 to 291 while 296 counters were unchanged. Turnover decreased to 729.26 million shares worth RM1.53 billion from Wednesday’s 766.82 million shares worth RM1.31 billion. The holiday-shortened week saw total market volume decreasing to 2.88 billion shares valued at RM4.88 billion from 3.5 billion shares valued at RM6.29 billion previously.

Taking cue from the Dow’s -303.68 points decline on previous Friday, the FBM KLCI opened on Monday with a down gap of 4.33 points at 1,464.79 and continued to plunge lower to end 22.86 points lower at 1,446.26. The key index rebounded mildly on Tuesday to close 1.74 points higher at 1,448.00 after opening 3.23 points better at 1,450.09. On Wednesday, persistent selling in heavyweights and big-cap stocks weighed down the key index amid mounting fears that Greece could soon default, and the FBM KLCI dropped 10.39 points to 1,437.61. The key index shed another 6.68 points to end the week at 1,430.93 on extended selling on Thursday after hitting the intra-week low of 1,427.75, ignoring the overseas rebound, as most investors were reluctant to participate ahead of the long weekend, as Friday was a public holiday.

On the weekly chart, the FBM KLCI formed a bearish long black candlestick which reflected the heavy selling pressure over the week. The key index had broken the support level at 1,442 and is likely to head towards the next critical lower support zone of 1,423 to 1,410-point. This support zone is especially critical as the 100-week moving average (MA) support is at 1,419, and the 23.6% Fibonacci Retracement (FR) level is at 1,410-point. If this support zone could not hold, then the FBM KLCI is likely to fall lower towards the 120-week MA at 1,375, follow by the psychological support level at 1,350 and the 38.2% FR level of 1,293.

On the daily chart, the FBM KLCI also formed a long black candlestick, and this is the fifth black candle formed consecutively, indicating a very bearish sentiment. The key index slid to the intra-day low of 1,427.75 before rebounding slightly, and is now very near the critical support level of 1,423. There is a high likelihood that the key index may re-test this critical support level this week, a breach will likely see the key index moving lower to test the 1,400 psychological support.

Weekly MACD continued to slide lower below the zero line, implying further correction ahead, while the daily MACD had made a dead-cross over the daily signal line, sending out a strong sell signal. Weekly RSI (14) has slid lower to 33.4, and daily RSI (14) is at 31.6, both readings showed that the FBM KLCI is currently in a bearish state. Weekly Stochastic continued to slide lower to 19.9, moving into the oversold zone, and the daily Stochastic is at 6.4, had continued to move deep into the oversold zone. Both weekly and daily indicators showed that the FBM KLCI is currently very weak and bearish, and as it is oversold, some rebound might be expected.

The trend of the FBM KLCI remained down and bearish as the key index is currently staying below the short, medium and long term MAs. Nonetheless, oversold signals on the indicators implies the likelihood for a technical rebound upside early this week, supported further by the recovery on global markets late last week on optimism governments and central bankers in developed economies would help relieve the European debt crisis. For the coming week, the FBM KLCI is likely to continue its consolidation with intermittent mild rebound. However, any near-term strength should be taken as an opportunity to sell ahead of a deeper correction. Immediate downside support zone is at 1,427to 1,400, while the overhead resistance zone is at 1,437 to 1,465.

Last Friday, the Dow rose +75.91 points or +0.66% to close at 11,509.09. This week, the FBM KLCI is likely to trade within a range of 1,380 to 1,502, and for today it is likely to trade within a range of 1,408 to 1,460.

This week's expected range: 1380 – 1502
Today’s expected range: 1408 – 1460

Resistance: 1441, 1450, 1460
Support: 1408, 1418, 1424

FBM KLCI - down on heavy selling pressure

Stocks on Bursa Malaysia closed in the red yesterday, amid mounting fears that Greece could soon default, and there were signs that foreign funds were leaving the Asian region, forcing investors to aggressively sell to avoid losses. Persistent selling in heavyweights and big-cap stocks weighed down the key index, with the benchmark FBM KLCI dropped 10.39 points or 0.72% to 1,437.61 after opening 5.04 points higher at 1,453.04. Losers beat gainers by 583 to 163 while 280 counters were unchanged. Turnover increased to 766.82 million shares worth RM1.31 billion from Tuesday’s 727.19 million shares worth RM876.45 million.

Taking from the positive close on Wall Street and Europe markets overnight, the FBM KLCI opened with an up gap of 5.04 points at 1,453.04 and surged to intra-day high of 1,455.30 within the first five minutes after opening, heavy selling activity immediately appeared and pressed the benchmark index lower throughout the day to end the day near the day’s low. Chart-wise, the FBM KLCI formed a bearish engulfing candlestick which indicates sellers were in full control for the day. With this very bearish formation on the candlestick and the breaking of the support level at 1,442, the key index is likely to continue its slide to re-visit the next critical support level at 1,423-point.

MACD continued to slide lower, indicating an increase in the bearish momentum. RSI (14) was lower at 33.3, indicating a continued weakening of the short term relative strength, and the key index remained in the bearish zone. Stochastic plunged lower to 7.6, deep into the short term oversold zone. In the past, whenever the stochastic dip below 10, some rebound rally happened. Readings from the indicators showed that the FBM KLCI is very bearish and weak, and the consolidation process is likely to continue.

The trend of the FBM KLCI remained down and bearish, and the key index is still trapped in the downtrend channel. To reverse the downtrend, the key index must at least break above the upper channel line at 1,464. Immediate downside support is at 1,423-point level, if the FBM KLCI could not hold at this level, its next target will be 1,410-point level. Overnight, the Dow rose +140.88 points or +1.27% to close at 11,246.73. Today, the FBM KLCI is likely to trade within a range of 1,412 to 1,474.

This week's expected range: 1427 – 1508
Today’s expected range: 1412 – 1474

Resistance: 1450, 1462, 1474
Support: 1412, 1424, 1431

FBM KLCI - in consolidation

Stocks on Bursa Malaysia closed on a mixed note yesterday as gains in selected blue-chips and heavyweights helped cushion the fall. Investors adopted a wait-and-see attitude as they were worried about the Euro-zone problems, as Europe was expected to see a banking crisis soon. The FBM KLCI rose 1.74 points or 0.12% to 1,448.00 after opening 3.23 points better at 1,450.09. Losers beat gainers by 359 to 278 with 296 counters unchanged. Turnover increased to 727.19 million shares worth RM876.45 million from 659.784 million shares worth RM1.17 billion on Monday.

The FBM KLCI opened 3.23 points higher at 1,450.09 and surged to the intra-day high of 1,452.15 within the first five minutes, and profit-taking pressed the key index to the morning session low of 1,446.38. The key index rebounded and moved in a tight range around 1,450 before late afternoon sell down which pushed it to the intra-day low of 1,445.97, and some buying in blue-chips lifted it to close off low. Chart-wise, the FBM KLCI formed a bearish small black spinning-top candlestick in Harami position which indicates indecision and consolidation. As the candle formed was black, it showed that the sellers were in control preventing the key index from moving higher. Nonetheless, as there was no new low compared with the low on Monday, the FBM KLCI is trying to settle down and the selling pressure is weakening, and a rebound is expected.

MACD was marginally lower, and is still above the signal line, indicating correction to the rebound, and the momentum is weakening. RSI (14) hooked up marginally to 36.1, reflecting the weak gain on the key index, and the index is still in the bearish zone. Stochastic slid lower to 23.2, indicating the continuation of the down cycle and very weak market strength. Readings from the indicators showed that the FBM KLCI is still weak and bearish, and is likely to continue to stay range-bound with a downward bias.

The trend of the FBM KLCI remained down. In order to reverse the current downtrend, the key index will have to break above the upper resistance line of the downtrend channel which is currently at 1,470. However, it looks tough at the moment. A downside break of the support at 1,442 will see the FBM KLCI sliding toward the critical support level of 1,423. Overnight, the Dow rose +44.73 points or +0.40% to close at 11,105.85. Today, the FBM KLCI is likely to trade within a range of 1,439 to 1,459.

This week's expected range: 1427 – 1508
Today’s expected range: 1439 – 1459

Resistance: 1452, 1455, 1459
Support: 1439, 1442, 1445

FBM KLCI - lower in line with regional peers

Stocks on Bursa Malaysia extended the downtrend from last Friday to finish on a weak note yesterday in line with its regional peers, as market players were cautious over the unresolved European debt crisis. The FBM KLCI ended 22.86 points or 1.56% lower at 1,446.26 after opening 4.33 points down at 1,469.12. Losers outnumbered gainers by 597 to 120 while 197 counters were flat. Turnover fell to 659.784 million shares worth RM1.17 billion from 739.612 million shares worth RM977.252 billion last Friday.

Taking cue from the Dow’s -303.68 points decline last Friday, the FBM KLCI opened with a down gap of 4.33 points at 1,464.79 and continued to plunge lower for the day with intermittent weak intra-day rebound. The key index hit the intra-day low of 1,443.93 before recovering slightly to close at 1,446.26. Chart-wise, the FBM KLCI formed a bearish long black candlestick which indicates heavy selling pressure on the index. The key index has broken the moving averages (MA) support at 1,462 and the psychological support level at 1,450, and tested the support of 1,444 and rebounded off it. A continued breach of the immediate support at 1,442 will likely see the FBM KLCI revisiting the 1,423 point-level.

MACD has hooked downward slightly and the histogram was shorter, indicating a loss of momentum. RSI (14) plunged to 35.2, back to the bearish zone. Stochastic has hooked downward to 32.6, and crossed below the slow stochastic line, indicating a resumption of the down cycle. Readings from the indicators showed that the FBM KLCI is still bearish and is likely to extend its current consolidation process.

The trend of the FBM KLCI remained down and bearish. If the current downtrend prolong, the FBM KLCI is likely to further correct downward with possible targets of 1,410, 1,378, 1,350 and 1,293. Overnight, the Dow rose +68.99 points or +0.63% to close at 11,061.12. Today, the FBM KLCI is likely to trade within a range of 1,417 to 1,486.

This week's expected range: 1427 – 1508
Today’s expected range: 1417 – 1486

Resistance: 1460, 1473, 1486
Support: 1417, 1430, 1438

FBM KLCI - likely to be range-bound with a downward bias

Stocks on Bursa Malaysia ended mixed last Friday following a choppy trade amid see-saw movements in Asian stocks as investors weighed on China's easing inflation. Markets fell globally as US President Barack Obama's job stimulus packages plan failed to spark a rally in the US, and with US Federal Reserve Chief Ben Bernanke not providing any details on the new measures to support the economy, traders continued to worry on the global economic outlook. However, Malaysian market still looked attractive following Bank Negara Malaysia's decision to retain the overnight policy rate at 3 per cent. The FBM KLCI which opened 3.1 points steadier at 1,472.93, went down 0.71 of a point to 1,469.12, and on a Friday-to-Friday basis, it declined 4.97 points from 1,474.09 recorded the previous Friday. Gainers thumped losers by 343 to 297 while 282 counters were unchanged. A total of 739.612 million shares, worth RM977.252 million, changed hands compared with 812.87 million shares, worth RM1.143 billion on Thursday. Weekly volume increased to 3.5 billion shares, valued at RM6.29 billion, from previous week’s 1.3 billion shares, valued at RM3.03 billion.

Taking cue from the 253.31 points plunge on Wall Street the previous Friday, the FBM KLCI opened last Monday 4.32 points lower at 1,469.77 and fell 10.97 points to 1,463.12, the lowest point of the day. The benchmark index continued its slides on Tuesday to close another 8.75 points lower at 1,454.37. In line with the rebound in most regional bourses even though Wall Street fell overnight, the FBM KLCI rebounded 10.24 points higher to close at 1,464.61 after opening 3.68 points steadier at 1,458.05 on Wednesday. The benchmark continued to climb higher on Thursday, finished 5.22 points better at 1,469.83, after the Prime Minister’s seventh update of the Economic Transformation Programme, and on Friday the FBM KLCI closed 0.71 of a point lower to 1,469.12 after touching the intra-day high of 1,480.33.

On the weekly chart, the FBM KLCI formed a Doji candlestick in Harami position which indicates indecision of market direction after a week of choppy trading. The key index managed to pierce through the 5-week moving average (MA) but failed to stay above it, indicating short term selling pressure continued to prevent the index from moving higher. The key index also hit the 80-week MA and rebounded off it, indicating some support from the long term MA. With the formation of a Doji, the FBM KLCI is likely to remain range-bound for this week, with a downward bias.

On the daily chart, the FBM KLCI formed a black shooting-star like candlestick, which indicates heavy profit-taking, or sell on strength activity, and this marked an end to the rebound on last Wednesday. The benchmark index is thus likely to move lower today, with immediate support zone at 1,464 to 1,462, provided by the cluster of 5, 10 and 360-day MAs which together converge at the 23.6% Fibonacci Retracement (FR) level of 1,464. If this support zone could not hold, then the key index is likely to re-test the next lower support at 1,453, follow by the 1,442-point level. Critical support is at 1,423-point level, which coincided with the 50% FR level measuring from the 1,243 low of 27/5/10 to the 1,597.08 record high of 11/7/11, a breach of the 1,423-point level will likely see the FBM KLCI correcting further downward to the 61.8% FR level of 1,378.

Weekly MACD continued to slide lower, but its histogram was shorter upward, indicating a slow down in the weekly downward momentum. Daily MACD, however, continued to climb higher, indicating a continued improvement in the daily upward momentum. Nonetheless, as the daily MACD is below the zero-line, the current upward move may just be a bear market rebound. Weekly RSI (14) hooked downward slightly to 39.07 from 39.9 the previous Friday, reflecting the mild pulled back. Daily RSI (14) also pulled back slightly to 41.9. Both weekly and daily RSI readings showed that the FBM KLCI is still in the bearish zone. Weekly Stochastic continued to slide lower to 22.6, while daily stochastic continued to ascend higher to 38.8, indicating the weekly down cycle is still in force, while the daily is undergoing a rebound. Readings from both the weekly and daily indicators showed that the FBM KLCI is likely to extend its consolidation process and to move range-bound.

The FBM KLCI is currently staying above its short term 5 and 10-day MAs, but is still below the 20 and 30-day MAs, indicating a rebound scenario. The main trend, however, remained down and bearish. The only positive (or less bearish) sign is that the key index has been forming higher lows since it hit the low of 1,423 on 9/Aug/2011. The FBM KLCI is likely to be range-bound in the coming week, depending on the overseas market development.

Last Friday, the Dow fell -303.68 points or -2.69% to close at 10,992.13. This week, the FBM KLCI is likely to trade within a range of 1,427 to 1,508, and for today it is likely to trade within a range of 1,452 to 1,493.

This week's expected range: 1427 – 1508
Today’s expected range: 1452 – 1493

Resistance: 1477, 1485, 1493
Support: 1452, 1459, 1464

FBM KLCI - higher on follow through rebound

Stocks on Bursa Malaysia ended higher yesterday boosted by gains in selected heavyweights and improved risk appetite following the Prime Minister’s seventh update of the Economic Transformation Programme. The positive movement of share prices was also prompted by a positive set of export data recorded for July. However, investors were still cautious about the global outlook and awaited positive news to serve as catalyst. The benchmark FBM KLCI, which went through a see-saw movement in early trade, bounced back at midday and finished 5.22 points or 0.36% better at 1,469.83. Gainers thumped losers by 415 to 265 while 284 counters were unchanged. A total of 812.87 million shares worth RM1.143 billion changed hands compared with 650.39 million shares worth RM1.253 billion yesterday.

The FBM KLCI opened 1.45 points higher at 1,466.06, but profit-taking activity pressed the key index to hit the intra-day low of 1,463.12 and the index rebounded to gradually move higher, mild buying interest appeared in the afternoon and sent the key index to the intra-day high of 1,471.22 before easing slightly on closing. Chart-wise, the FBM KLCI formed a bullish white candlestick which indicates continuation of the previous day’s bottom reversal move, and the upward momentum is likely to carry the key index to move higher to test the immediate overhead resistance at 1,474-point level, which coincided with the 20-day moving average (MA). A successful breakthrough of the 1,474-point resistance level will likely see the FBM KLCI moving higher to test the next target at 1,490.

MACD continued to move higher after making a golden-cross the day before, indicating a gradual pick up in the upward momentum. However, as MACD is still below the zero line, the present up move could well be just a technical rebound in a bear trend. RSI (14) was higher at 42.15, indicating an improvement of the relative strength from bearish to mildly bearish. Stochastic is at 30.9, and has cross above the slow stochastic line, indicating a possible beginning of a short term up cycle; however, more data is needed to confirm this. Readings from the indicators showed that the FBM KLCI has possibly bottom out for the time being, and may stage an up move soon.

The main trend of the FBM KLCI remained down and bearish, but the short term trend has shown sign of reversal as the 5-day MA has just made a cross above the 10-day MA, giving out a first signal of a possible short term up trend is in the brewing. However, as there are still many moving average resistances in the overhead area, the short term trend reversal is expected to face with many challenges. Immediate overhead resistance zone lies at 1,471 to 1,490 while the downside support zone is at 1,463 to 1,453.

Overnight, the Dow fell -119.05 points or -1.04% to close at 11,295.81. Today, the FBM KLCI is likely to trade within a range of 1,456 to 1,480.

This week's expected range: 1414 – 1521
Today’s expected range: 1456 – 1480

Resistance: 1473, 1477, 1480
Support: 1456, 1460, 1464

FBM KLCI - strong rebound with MACD golden-cross formation

Stocks on Bursa Malaysia staged a rebound on bargain hunting yesterday after two consecutive days of losses, in line with the rebound in most regional bourses even though Wall Street fall last night. The upbeat sentiment regionally was supported by a positive signal for the third round of quantitative easing. The FBM KLCI closed 10.24 points or 0.7% higher at 1,464.61 after opening 3.68 points steadier at 1,458.05. Gainers thumped losers by 439 to 240 while 251 counters were unchanged. A total of 650.39 million shares worth RM1.253 billion changed hands compared with 706.7 million shares worth RM1.517 billion on Tuesday.

The FBM KLCI opened 3.68 points higher at 1,458.05 and surged to the morning session high of 1,462.62, profit-taking activity which appeared pressed the key index to the intra-day low of 1,457.68. Bargain hunting activity appeared in the afternoon pushed the key index to the intra-day high of 1,465.01 before settling at 1,464.61. Chart-wise, the FBM KLCI formed a bullish white candlestick which indicates buyers were in control for the day. As the key index opened higher and moved higher to close the downside gap formed two days ago, it indicates a strong reversal in action, and the key index is likely to continue moving higher. Immediate overhead resistance zone is at 1,470 to 1,490 with 1,474 being the key resistance level.

MACD has turned up and made a golden-cross over the signal line, sending out buy signal. RSI (14) has hooked up to 39.9, reflecting the rebound, but is till in the bearish zone. Stochastic, however, has hooked downward to 27.2, indicating the down cycle is still in action. Readings from the indicators showed that the FBM KLCI might stage a follow through rebound with the appearance of the golden-cross signal on MACD.

The main trend of the FBM KLCI remained down. Nonetheless, some positive bottom reversal signs were observed, with first, the key index was able to reversed up to close above the 5, 10 and 360-day moving averages, and second, the MACD had made a golden-cross after a long period of correction. This indicates the FBM KLCI is ready for a rally towards the 1,500-points level, with the main hurdles at 1,474 and 1,490.

Overnight, the Dow rose +275.56 points or +2.47% to close at 11,414.86. Today, the FBM KLCI is likely to trade within a range of 1,452 to 1,474.

This week's expected range: 1414 – 1521
Today’s expected range: 1452 – 1474

Resistance: 1468, 1470, 1474
Support: 1452, 1455, 1459

FBM KLCI - downtrend continued

Stocks on Bursa Malaysia finished yesterday in the red due to selling pressure and lack of investor risk appetite. Asian markets, including the local bourse, continued their downtrend for the second consecutive day amid fresh concern over the Euro zone debt crisis. Some bargain hunting was noted yesterday, especially for Axiata, Eastern & Oriental and Genting. The benchmark FBM KLCI closed 8.75 points or 0.60% lower at 1,454.37 after opening 2.86 points easier at 1,460.26. Losers thumped gainers by 423 to 253 while 279 counters were unchanged. A total of 706.7 million shares worth RM1.517 billion changed hands compared with 640.321 million shares worth RM1.37 billion transacted on Monday.

The FBM KLCI opened with a down gap of 2.86 points at 1,460.26 and slid lower to touch the intra-day low of 1,453.26. The key index rebounded and gradually recovered lost ground and climb higher to hit the intra-day high of 1,462.32 before profit-taking activity which appeared in the last hour sent the index to close near the day’s low. Chart-wise, the FBM KLCI formed a bearish black candlestick which filled the upside gap that formed on September 2nd, and it is likely that the key index will continue its slide to move lower to test the immediate support levels at 1,450, 1,446 and 1,442. A breach of the 1,442-point support level will likely see the FBM KLCI move lower to the 1,436-point support level provided by the 420-day moving average (MA), which has recently given the key index a strong support at the 1,423-point level.

MACD has again turned downward, signifying the end of the rebound, and hence is likely to continue with its bearish downward momentum. RSI (14) continued to slide lower to 35.3 from 37.6, indicating an increased in the bearishness. Stochastic is higher at 31.8, and has however bucked the trend to cross above the slow stochastic line. Readings from the indicators showed that the FBM KLCI is still in a weak and bearish state, and hence is likely to continue with its consolidation.

The trend of the FBM KLCI remained down and bearish. With the downward move yesterday which broke the 360-day MA support level at 1,460, the key index has resumed its downtrend, and is likely to re-visit the critical support level at 1,423. Overnight, the Dow fell -100.96 points or -0.90% to close at 11,139.30. Today, the FBM KLCI is likely to trade within a range of 1,441 to 1,471.

This week's expected range: 1414 – 1521
Today’s expected range: 1441 – 1471

Resistance: 1460, 1466, 1471
Support: 1441, 1447, 1450

FBM KLCI - formation of bearish Harami candle pattern

Stocks on Bursa Malaysia closed lower yesterday, in line with weaknesses in regional markets which were spooked by stagnant US job data released last Friday and heightened investors' worry about the state of the world's largest economy. The prolonged Europe debt crisis, particularly in Greece, has affected sentiments in regional markets, and the pessimistic remarks by the World Bank that the global economy was stepping into a new danger zone also added pressure to the market. The FBM KLCI dropped 10.97 points or 0.74% to 1,463.12 after opening 4.32 points easier at 1,469.77. Losers thumped gainers by 526 to 210 while 235 counters were unchanged. A total of 640.321 million shares worth RM1.37 billion changed hands compared with 852.40 million shares worth RM2.315 billion last Friday.

Taking cue from the heavy losses on Wall Street last Friday, the FBM KLCI opened 4.32 points lower at 1,469.77 and was trading sideways in a narrow band in the negative zone throughout the morning session, it touched the intra-day high of 1,471.13. The key index plunged in the afternoon session to close at 1,463.12, the lowest point of the day. Chart-wise, the FBM KLCI formed a bearish Harami candlestick pattern which is a key reversal candle pattern, and the key index is likely to slide lower today to test the immediate lower support zone at 1,460 to 1,442. The support level at 1,458 to 1,461 provided by the 5 and 360-day moving averages are important levels to watch, if these two immediate support levels are breached, then the key index is likely to re-test the 1,450 psychological support level follow by the pivot low of 1,442.

MACD climb marginally higher, and the histogram also turned shorter upward, indicating a reduction in the bearish momentum. However, as the MACD is still below the signal line and is in the negative zone, the improvement may just reflect a technical rebound in a bear trend. RSI (14) hooked down slightly to 37.6, falling back to the bearish zone. Daily Stochastic has hooked up slightly to 28.3, but is still below the slow stochastic line, it is reflecting the recent rebound, and the down cycle is not over yet. Readings from the indicators showed that the momentum of the FBM KLCI has improved slightly but the overall picture is still bearish.

The main trend of the FBM KLCI remained down and bearish. Immediate support zone is envisaged at 1,460 to 1,442, if this zone cannot hold, then the FBM KLCI is likely to re-test the pivot low of 1,423. The total volume traded yesterday has greatly reduced, which indicates a reduction in the overall selling pressure, and the FBM KLCI is likely to continue to consolidate and move range-bound.

US market was closed yesterday for Labor Day holiday. Today, the FBM KLCI is likely to trade within a range of 1,452 to 1,479.

This week's expected range: 1414 – 1521
Today’s expected range: 1452 – 1479

Resistance: 1469, 1474, 1479
Support: 1452, 1457, 1460

FBM KLCI - consolidation likely to continue

Stocks on Bursa Malaysia kicked off September on a positive note with the key FBM KLCI rising 1.85 per cent at the close of last Friday on bargain hunting, after the three days break due to Hari Raya and Merdeka Day celebrations, as investors played catch-up following positive gains by regional bourses. The benchmark FBM KLCI was 26.82 points or 1.85% higher at 1,474.09 after opening 13.39 points better at 1,460.66, lifted mostly by gains on selected heavyweights namely CIMB, IOI, Genting Malaysia and DiGi. Advancers thumped decliners by 505 to 238 while 240 counters were unchanged. Volume rose to 852.4 million shares worth RM2.14 billion from 447.13 million shares worth RM893.58 million on Monday.

The FBM KLCI rebounded in tandem with regional markets on Monday. It opened 3.4 points higher at 1,448.21 and hit the intra-day day high of 1,456.18 before closing the half-a-day trading 2.46 points higher at 1,447.27. Bursa Malaysia was closed from Tuesday to Thursday for Hari Raya and Merdeka Day holidays. The benchmark index re-opened on Friday with an up gap of 13.39 points at 1,460.66, and surged to the intra-day high of 1,483.79 before pulling back on profit-taking to close the week 29.28 points higher at 1,474.09.

On the weekly chart, the FBM KLCI formed a bullish Harami candlestick pattern, a bottom reversal candlestick pattern, which indicates fight back by the bulls after seven consecutive weeks of losses, and the key index might stage a follow through rebound for the coming week. The FBM KLCI rebounded off the 80-week moving average (MA) support after hitting it, but pulled back after touching the overhead resistance posted by the 5-week MA. The overhead resistance zone at 1,487 to 1,510 is the immediate hurdle to the current rebound.

On the daily chart, the FBM KLCI gap up to open above the 5-day and the 360-day MA at 1,460.66 and touched the intra-day high of 1,483.79 before pulling back to close at 1,474.09. It formed a bullish white candlestick which indicates buyers were in control for the day. However, the up move was met with the resistance by the 10-day MA, and the key index closed below the 10-day MA after penetrating it briefly but is now resting on the horizontal support level of 1,474. Immediate strong overhead resistance level is expected at 1,489-point level, where the 20 and 300-day MA meets, which also coincided with the 38.2% Fibonacci retracement level. Immediate downside support zone is envisaged at 1,460 to 1,442-points level.

Weekly MACD continued to slide lower. However, the histogram turned shorter upward, indicating a slow down in the weekly downward momentum. Daily MACD has hooked upward, but is still below the signal line in the bearish zone, indicating the upward move may just be a technical rebound. Weekly RSI (14) has hooked upward to 39.9, while daily RSI (14) is higher at 40.6, and both readings showed that the relative strength is still bearish despite a rebound. Weekly Stochastic continued to slide lower to 25.4, and daily stochastic is also lower at 26.1, indicating the down cycle is still in continuation and is approaching the oversold zone. Readings from the weekly and daily indicators showed that the FBM KLCI is still in a bearish mode, where the up move may just be a technical rebound in a bearish downtrend, and the key index is likely to continue its consolidation until clearer signals of confirmed reversal is observed.

The trend of the FBM KLCI remained down and bearish, and the up move on last Friday is read as a technical rebound which could be short-live. If the key index cannot move above the 1,500-point level, at least, then it might continue with its southward move to re-test the support level at 1,442. The gap at 1,460-point may provide a possible immediate strong support.

Last Friday, the Dow fell -253.31 points or -2.20% to close at 11,240.26. This week, the FBM KLCI is likely to trade within a range of 1,414 to 1,521, and for today it is likely to trade within a range of 1,438 to 1,507.

This week's expected range: 1414 – 1521
Today’s expected range: 1438 – 1507

Resistance: 1485, 1496, 1507
Support: 1438, 1449, 1461

Stocks to watch: EnO, TM

FBM KLCI - a weak rebound

Stocks on Bursa Malaysia ended Monday’s half-day trading on a positive note on bargain-hunting, with interest seen in banking stocks. The local market gained along with its regional peers following positive leads from the US on last Friday. Despite the positive market, trading was light as most market players remained on the sidelines ahead of the Hari Raya Aidilfitri and Merdeka Day holidays. The FBM KLCI closed 2.46 points or 0.17% higher at 1,447.27 after opening 3.40 points higher at 1,448.21. Gainers led losers by 432 to 214 while 221 counters were unchanged. Trading volume was thin at 447.13 million shares worth RM893.58 million compared with 966.74 million shares worth RM2.27 billion on Friday.

The FBM KLCI opened 3.4 points higher at 1,448.21 and pulled back to the intra-day low of 1,446.12, but bargain-hunting activity on selected blue-chips helped to push the key index to touch the intra-day high of 1,456.18 before pulling back on last minute profit-taking to close the half day trading at 1,447.27. Chart-wise, the FBM KLCI formed a black inverted hammer candlestick in Harami position, which indicates a possible temporary bottom. However, as the inverted hammer candlestick is black in color, the signal is less strong. Hence, the FBM KLCI is likely to move range-bound today, and the immediate overhead resistance zone is at 1,450 to 1,460, where 1,460-point coincided with the 360-day moving average resistance, while the immediate downside support zone is envisaged at 1,446 to 1,442-points level.

MACD continued to slide lower, indicating the bearish momentum is still in strong action. RSI (14) hooked up marginally to 27.1, reflecting the weak rebound, and indicated that the relative strength of the key index is still very bearish. Stochastic continued to slide lower to 27.4, indicating the down cycle is in continuation. Readings from the indicators showed that the FBM KLCI is currently still bearish and weak, and this situation might prolong until there are signs of bottoming out or reversal.

The trend of the FBM KLCI remained down and bearish. Most of the regional major indices rebounded over the last four days, but showed signs of profit-taking pulled back yesterday. The FBM KLCI might do catch up rebound today, but could be short-lived. Overnight, the Dow fell -119.96 points or -1.03% to close at 11,493.57, ending a four-day rally. Today, the FBM KLCI is likely to trade within a range of 1,433 to 1,466.

This week's expected range: 1423 – 1474
Today’s expected range: 1433 – 1466

Resistance: 1454, 1460, 1466
Support: 1433, 1439, 1443