Stocks on Bursa Malaysia closed on firm note yesterday on late buying interest from fund managers to adjust their portfolios ahead of the final trading week of 2011. The FBM KLCI was able to re-test its immediate resistance level of 1,500 on last-minute buying although moving range-bound earlier. The key index rose 4.76 points or 0.32% to close at 1,500.91, its best in four months, boosted by fund buying, especially in plantation counters. Gainers led losers by 378 to 341 while 289 counters were unchanged. Turnover was thin with 993.76 million shares worth RM743.83 million changed hands compared with 942.51 million shares valued at RM886.65 on last Friday.
The FBM KLCI opened 2.0 points lower at 1,494.15 and slid to the intra-day low of 1,490.16 within the first fifteen minutes. The key index rebounded to gradually recover its lost ground and moved higher for the rest of the day, and some last minute buying in selected blue-chips further pushed the key index to close at the highest point of the day. Chart-wise, the FBM KLCI formed a bullish white candlestick which indicates the bulls were in control. The key index has now moved into the resistance zone of 1,500 to 1,506, if it can breakthrough this resistance zone decisively with volume, then it might trigger a rally towards the next higher target of 1,530-point.
MACD was higher, indicating a continued increased in the market momentum. RSI (14) was higher at 62.9, indicating the key index has turned bullish. Stochastic continued to surge higher to 99.1, indicating a strong market strength and continuation of the up cycle. Nonetheless, as the stochastic is deep into the overbought zone, a pullback might be expected. Readings of indicators showed that the FBM KLCI is currently in a bullish state, and the upward momentum might carry it to a higher level.
The trend of the FBM KLCI is gradually turning bullish, and if the key index is able to close above the resistance zone at 1,500 to 1,506 formed by the cluster of long term 200, 240 and 300-day SMA, it would turn fully bullish and a rally might be expected. Overnight, the Dow fell -2.65points or -0.02% to close at 12,291.35, and today, the FBM KLCI is likely to trade within a range of 1,482 to 1,512.
This week's expected range: 1441 – 1530
Today’s expected range: 1482 – 1512
Resistance: 1505, 1508, 1512
Support: 1482, 1486, 1493
Stocks to watch: PERISAI, BHIC, SUPERMX,YINSON
No comments:
Post a Comment