Stocks on Bursa Malaysia closed lower yesterday led by plantation counters amid weak regional equities. The local bourse moved in line with regional markets on a lack of market-moving factors, and was disappointed with US policymakers not mentioning fresh measures to stimulate the US economy at the Federal Open Market Committee meeting on Tuesday. The FBM KLCI declined 2.27 points or 0.15% to 1,463.12 after opening 3.41 points lower at 1,461.98. The overall market sentiment was bearish with losers outpacing gainers by 412 to 309 while 289 counters were unchanged. Turnover was lower at 1.5 billion shares worth RM1.08 billion from 1.83 billion shares valued at RM1.38 billion on Tuesday.
The FBM KLCI opened 3.41 points lower at 1,461.98 and fell to the intra-day low of 1,459.45 within the first five minutes after market opened. The key index then rebounded and was moving sideways in and out of the positive and negative territory in a narrow range for the rest of the day. Chart-wise, the FBM KLCI formed a small white spinning-top candlestick which indicates indecision of market direction and consolidation. Hence, the key index is likely to continue its current consolidation process with immediate support zone at 1,459 to 1,456. A break below the support at 1,456 is likely to see the FBM KLCI falling lower to test the 1,450-point psychological support level.
MACD continued to slide lower, albeit still above the zero-line, indicating a continued loss of market momentum. RSI (14) was at 49.5 and has slipped below the 50 level, is still in the neutral zone but with a bearish bias. Stochastic made a gentle hooked up to 51.8 but was still below the slow stochastic line, indicating the down cycle is still intact. Readings from the indicators showed that the FBM KLCI is losing its momentum and is currently in a consolidation mode.
The short term trend of the FBM KLCI remained down as the key index continued to stay below the short term moving averages, and the medium term trend is sideways while the long term trend remained bearish. Immediate overhead resistance zone is at 1,466 to 1,474 while the immediate downside support zone is at 1,459 to 1,456. With no fresh market moving news, the FBM KLCI is likely to continue with its consolidation. Overnight, the Dow fell -115.42 points or -0.97% to close at 11,839.52. Today, the FBM KLCI is likely to trade within a range of 1,452 to 1,474.
This week's expected range: 1410 – 1529
Today’s expected range: 1452 – 1474
Resistance: 1466, 1470, 1474
Support: 1452, 1456, 1459
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