FBM KLCI - beginning of short term downtrend

Stocks on Bursa Malaysia closed mixed yesterday in the absence of promising market leads locally and from abroad, with major US equity indices having closed mixed last Friday. The negative movement on the local bourse was in line with the weaker performance of Asian markets, after the US reported less-than-favourable economic growth data, which hurt investors’ sentiment. The FBM KLCI closed 7.35 points or 0.48% lower at 1,513.55, after opening 1.99 points lower at 1,518.91. Gainers led losers by 460 to 387 while 310 counters were unchanged. Total turnover rose to 2.307 billion shares worth RM1.841 billion from the 2.278 billion shares worth RM1.85 billion transacted last Friday.

The FBM KLCI opened 1.99 points lower at 1,518.91 but rebounded to the intra-day high of 1,523.91 within the first thirty minutes, and profit-taking activity which set in pushed the key index lower for the rest of the day with weak intermittent rebound to settle near the low of the day. Chart wise, the FBM KLCI formed a black inverted hammer candlestick which indicates the bulls were initially strong in attempting to push the key index higher but the bears later surfaced and took control. With the price action yesterday, the FBM KLCI had broken the lower support of the triangle pattern and further down move is expected. On top of that, the key index had also closed below the short term 5, 10 and 20-day SMA, which means the short term correction has started, and the key index is likely to slide lower towards the lower support zone at 1,509 to 1,498.

MACD continued to slide lower with the histogram increased in length southward, indicating an acceleration of the downward momentum. RSI (14) dropped further to 53.1, indicating the short term relative strength has turned weaker and is moving further into the mildly bullish zone. Stochastic also slid lower to 59.5, indicating the weakening of the market strength and continuation of the short term down cycle. Readings from the indicators showed that the FBM KLCI has gone into a correction mode, and is likely to slide lower until the oscillators shows signs of reversal.

The FBM KLCI has started to turn downtrend for the short term as the key index is now closing below the short term 5, 10 and 20-day moving averages. The medium and long term trend is however, still up. The FBM KLCI is likely to see good support at the 1,505 to 1,498 support zone provided by the cluster of long term moving averages. With a lack of fresh leads, the index-link counters are likely to further consolidate while the lower liners are likely to continue dominating the active scene as can be seen from the volume which is above the 2 billion shares mark.

Overnight, the Dow fell -6.74 points or -0.05% to close at 12,653.72. Today, the FBM KLCI is likely to trade within a range of 1,497 to 1,536.

This week's expected range: 1507 – 1538
Today’s expected range: 1497 – 1536

Resistance: 1521, 1529, 1536
Support: 1497, 1504, 1509

Stocks to watch: CYPARK, MUDAJYA, KINSTEL, PRESBHD, POS, KIMLUN

FBM KLCI - likely to extend consolidation

Stocks on Bursa Malaysia closed lower yesterday as investors reduced their holdings in selected finance counters ahead of the weekend. Losses were mostly seen in CIMB and Maybank which dragged the FBM KLCI 2.96 points or 0.19% lower to end the day at 1,520.90, while week-on-week, the key index declined 1.76 point from previous Friday’s 1,522.66. Gainers led losers by 459 to 370 while 292 counters were unchanged. Volume rose to 2.278 billion shares valued at RM1.849 billion compared with 1.957 billion shares worth RM1.692 billion on Thursday.

Last week, the start of Year of the Dragon saw mild trading as most investors had not returned from their Chinese New Year holiday. Lack of support kept the market easier on Wednesday with the FBM KLCI easing 2.9 points to 1,519.76 amid concerns over the Euro debt crisis, but bargain hunting prompted a rebound the following day with a gain of 4.1 points to 1,523.86. On Friday, the market eased a bit as investors were reluctant to take bigger exposures ahead of the weekend amid uncertainty in Europe.

On the weekly chart, the FBM KLCI formed a small black spinning-top candlestick which indicates indecision of market direction and consolidation with a downward bias. On the daily chart, the key index formed a small black candlestick which also indicates consolidation. In short, the FBM KLCI was basically in a sideways range-bound mode with immediate overhead resistance at 1,530 and a downside support at 1,514. A breakout from the 1,530-point resistance level will likely see the FBM KLCI moving higher with the next target at 1,553.

Weekly MACD was higher, however, its histogram was turning shorter, indicating a slow down in the weekly upward momentum. Daily MACD, nonetheless, continued to slide lower, reflecting the consolidation mode on the daily chart. Weekly RSI (14) hooked downward slightly to 56.2, and daily RSI (14) also turned lower to 58.1, indicating both the weekly and daily relative strength were in the mildly bullish zone. Weekly Stochastic was lower at 93.9 and has gone below its weekly slow stochastic line, and daily Stochastic has also hooked downward to 72.9, reflecting the consolidation and mild loss in weekly and daily momentum. Readings from the indicators showed that the FBM KLCI is in a consolidation mode from both the weekly and daily perspective, and this situation is likely to continue until a firm breakout is observed in either one direction.

The short term trend of the FBM KLCI has turned sideway, while the medium and long term trend remained up. This week, Bursa Malaysia is likely to trend higher along with other regional markets, boosted by positive news from the US and Europe. Last Friday, the Dow fell -74.17 points or -0.58% to close at 12,660.46. This week, the FBM KLCI is likely to trade within a range of 1,507 to 1,538, and for today, it is likely to trade within a range of 1,514 to 1,529.

This week's expected range: 1507 – 1538
Today’s expected range: 1514 – 1529

Resistance: 1524, 1526, 1529
Support: 1514, 1516, 1518

Stocks to watch: KNM, CYPARK, PUNCAK, KHSB, PRESBHD, SILKHLDG

FBM KLCI - higher amid consolidation mode

Stocks on Bursa Malaysia ended in the positive territory on continued buying interest for finance and plantation counters. Market sentiment was also in tandem with the bullish start on the European stock market buoyed by the US Federal Reserve’s announcement that it would likely keep interest rates low until 2014. The FBM KLCI ended 4.1 points or 0.27% higher at 1,523.86 after opening 0.91 point higher at 1,520.67. Gainers overwhelmed losers by 524 to 233 with 305 counters unchanged. A total of 1.96 billion shares, worth RM1.69 billion, were transacted compared with 1.34 billion shares, worth RM1.54 billion, registered on Wednesday.

The FBM KLCI opened 0.91 of a point higher at 1,520.67 and moved in a tight range in the positive territory between the intra-day low of 1,519.86 and the high of 1,523.86 throughout the day. Chart wise, the FBM KLCI formed a small white candlestick in bullish Harami position which indicates consolidation with an upward bias. The key index continued to move within the triangle pattern with immediate overhead resistance at 1,527 while the downside support is at 1,515.

MACD continued to slide lower but its histogram was slightly taller indicating a slow down in the downward momentum and sign of a possible up swing. RSI (14) hooked upward to 60.2, indicating the short term relative strength of the key index has again moved into the bullish zone. Stochastic continued to climb higher to 79.2, indicating an improvement in the market strength and continuation of the short term up cycle. Readings from the indicators showed that the FBM KLCI is gradually turning stronger and likely to move out of the current consolidation mode soon.

The short term trend of the FBM KLCI is sideways range-bound but with an upward bias, while the longer term trend still remained up. Immediate overhead resistance zone is at 1,527 to 1,530, and a breakout from this resistance zone is likely to see the key index moving higher towards the next target level of 1,550. Judging from the overall volume of nearly 2 billion shares yesterday, the market is likely to remain active with rotational play on second and third liners while the key heavyweights might continue to consolidate.

Overnight, the Dow fell -22.33 points or -0.18% to close at 12,734.63. Today, the FBM KLCI is likely to trade within a range of 1,517 to 1,528.

This week's expected range: 1499 – 1537
Today’s expected range: 1517 – 1528

Resistance: 1526, 1527, 1528
Support: 1517, 1518, 1521

Stocks to watch: KNM, 3A, NAIM, REDTONE

FBM KLCI - lower on profit-taking correction

Stocks on Bursa Malaysia closed mixed yesterday with second and third liners making gains while heavyweights, CIMB, Petronas Chemicals and Maybank, were in the red. Trading was mild as most investors were still away for the Chinese New Year holidays. The FBM KLCI ended 2.9 points or 0.19% lower at 1,519.76, after opening 1.04 points higher at 1,523.7. Gainers overwhelmed losers by 389 to 315 with 296 counters unchanged. Some 1.34 billion shares, worth RM1.54 billion, changed hands compared with 1.65 billion shares, worth RM1.49 billion, registered last Friday.

The FBM KLCI opened 1.04 points higher at 1,523.70 and surged to the intra-day high of 1,527.57 within the first thirty minutes, and profit-taking activity immediately surfaced which pushed the key index into the negative territory and stayed there for the rest of the day. The key index hit the intra-day low of 1,518.35 before rebounding slightly to close off low. Chart wise, the FBM KLCI formed a bearish black inverted hammer in dark-cloud-cover pattern which indicates profit-taking activity was dominant yesterday, and the key index is likely to further consolidate today. Immediate downside support zone is at 1,516 to 1,509.

MACD continued to slide lower, albeit still above the zero-line, indicates a loss in the market momentum. RSI (14) hooked downward to 58.2, reflecting the pulled back in the index yesterday and falling of the relative strength to the mildly bullish zone. Stochastic, however, continued to move higher to 67.6 after crossing the slow stochastic line, indicating a possible continuation of the short term up cycle. Mixed signals from the indicators showed that the FBM KLCI might continue to consolidate in the short term.

The short term trend of the FBM KLCI is in sideways range-bound as the key index continues to stay within the triangle pattern with immediate overhead resistance at 1,530 and the downside support at 1,502. The medium to longer term trend, nonetheless, remained up. The overall market is likely to continue to be dominated by active trading in the third liners and penny stocks while the blue-chips continue to consolidate. Overnight, the Dow rebounded +81.21 points or +0.64% to close at 12,756.96. Today, the FBM KLCI is likely to trade within a range of 1,507 to 1,537.

This week's expected range: 1499 – 1537
Today’s expected range: 1507 – 1537

Resistance: 1526, 1532, 1537
Support: 1507, 1512, 1516

Stocks to watch: NAIM, MAS, BHIC, MAYBULK, 3A

FBM KLCI - likely to extend consolidation with an upward bias

Stocks on BURSA Malaysia closed higher last Friday on good buying momentum as investors found bargains in heavyweight counters despite some profit-taking ahead of the extended weekend. Sentiment was lifted by a bullish regional performance after overnight gains on Wall Street and solid demand for Spanish and French bonds. The market was closed on Monday and Tuesday for the Chinese New Year celebrations. The FBM KLCI rose 5.85 points or 0.39% to 1,522.66 after opening 1.33 points higher at 1,518.14. Week-on-week, the key index lost 0.41 point from previous Friday’s 1,523.07. Market breadth was positive with gainers led losers by 512 to 249. Turnover was lower with 1.65 billion shares worth RM1.49 billion changed hands compared with 1.94 billion shares worth RM1.62 billion on Thursday. Total weekly volume declined to 7.96 billion shares worth RM7.86 billion from 8.6 billion shares worth RM8.5 billion last week.

The FBM KLCI was basically in a sideways consolidation mode last week, and it entered the third week of consolidation since the beginning of the new year. The FBM KLCI opened on last Monday with a down gap of 2.68 points at 1,520.39 and closed at the intra-week low of 1,509.06. The key index rebounded on Tuesday with a gain of 10.30 points to 1,519.36. On Wednesday, the key index gave back 1.98 points to close at 1,517.38, and closed almost flat on Thursday with a marginal of 0.57 point lower at 1,516.81. On Friday, the FBM KLCI moved higher to end the week near the intra-week high at 1,522.66.

On the weekly chart, the FBM KLCI formed a white hammer candlestick which indicates the bears were initially dominant in pushing the key index down but the bulls later came in to support and pushed up the index. The price action showed that the FBM KLCI was still basically in a range-bound sideways consolidation last week but with an upward bias. Immediate overhead resistance zone is at 1,526 to 1,530. If the key index is able to break through this resistance zone convincingly with volume, then it is likely that it may rally towards the next target level of 1,550.

On the daily chart, the FBM KLCI formed a bullish white candlestick on Friday and closed near the intra-day high. Hence, the key is likely to continue with it upward momentum to move higher today. Immediate resistance levels are anticipated at 1,526 and 1,530-point level.

Weekly MACD continued to climb higher, but the weekly histogram was slightly shorter, indicating weakness is surfacing in the weekly chart. On the contrary, daily MACD continued to slide lower, but its histogram has turned shorter upward, indicating a possible rebound ahead. Weekly RSI (14) was flat at 56.6, reflecting the consolidation mode. Daily RSI (14) was higher at 60.1, indicating the daily relative strength has returned to the bullish zone. Weekly Stochastic was lower and has just made a crossed below the weekly slow stochastic line, giving out a first signal that the up cycle on the weekly chart is probably coming to an end and may go into a consolidation. Daily Stochastic, nonetheless, has continued to move higher and crossed above the daily slow stochastic line, indicating a possible beginning of an up cycle on the daily chart. Readings from the weekly and daily indicators showed that the FBM KLCI was having conflicting signals, in which the key index might continue to consolidate on the weekly perspective, while on the daily perspective, it may stage a rebound.

The short term trend of the FBM KLCI has turned sideways as key index’s daily chart is forming a triangle chart pattern since its close at 1,530.73 on the 30th December 2011, if the key index is able to breakout from this triangle consolidation pattern with volume, it may have a possible target of 1,585. The longer term trend, nevertheless, remained up.
Overnight, the Dow fell -33.07 points or -0.26% to close at 12,675.75. This week, the FBM KLCI is likely to trade within a range of 1,499 to 1,537, and for today, it is likely to trade within a range of 1,512 to 1,530.

This week's expected range: 1499 – 1537
Today’s expected range: 1512 – 1530

Resistance: 1525, 1527, 1530
Support: 1512, 1514, 1518

Happy Chinese New Year 2012

May the Year of the Water Dragon brings U and Your family Good Health, Happiness and Prosperity. Gong Xi Fa Cai

FBM KLCI - flat in mixed market

Stocks on Bursa Malaysia closed mixed yesterday on mild profit-taking ahead of the long Chinese New Year weekend. However, losses were limited amid investor interest in smaller cap stocks. The market was supported by improved risk appetite after the International Monetary Fund said it was planning a large expansion in its lending pool to safeguard the global economy against the worsening Euro-zone debt crisis. The FBM KLCI ended 0.57 point lower at 1,516.81 after opening 1.58 point lower at 1,515.80. Gainers led losers by 378 to 370 while 325 were unchanged. Turnover increased to 1.936 billion shares valued at RM1.618 billion as compared with Wednesday’s 1.490 billion shares worth RM1.599 billion.

The FBM KLCI opened 1.58 point lower at 1,515.80 but surged to the intra-day high of 1,522.32 in the first fifteen minutes of trade. However, profit-taking activity which surfaced pressed the key index southward for the rest of the day to hit the intra-day low of 1,514.04 before rebounding to close almost unchanged. Chart wise, the FBM KLCI formed a white inverted hammer candlestick which indicates the bulls were initially trying to take control but the bears later came out to press the index back to where it started. Hence, the FBM KLCI is likely to extend its range-bound consolidation but with an upward bias.

MACD continued to slide lower, indicating a continued loss in the index’s momentum. However, as MACD is still above the zero-line, the current weakness is view as a short term consolidation. RSI (14) was marginally lower at 57.5, reflecting the mild loss in the index and showed that the key index is still in the mildly bullish zone. Stochastic, however, has hooked upward to 60.3, showing sign that a possible rebound may take place. Readings from the indicators showed that the FBM KLCI is currently undergoing a short term consolidation process.

The immediate short term trend of the FBM KLCI has turned into sideways range-bound as it is capped on top by the 5 and 10-day SMA but was supported below by the 20 and 30-day SMA, but the longer term trend still remained up. Immediate overhead resistance zone is at 1,522 to 1,530 while the downside support zone is at 1,509 to 1,501. A breakout is either one direction will see the FBM KLCI continue moving in that direction.
As Bursa Malaysia is close for the Chinese New Year holiday on next Monday and Tuesday, the overall market is likely to remain as it is, and we like to take this opportunity to wish all our readers “Gong Xi Fa Cai” and may the year of the Dragon brings you and your family good health, happiness and prosperity.

Overnight, the Dow rose +46.24 points or +0.37% to close at 12,625.19. Today, the FBM KLCI is likely to trade within a range of 1,504 to 1,531.

This week's expected range: 1502 – 1540
Today’s expected range: 1504 – 1531

Resistance: 1521, 1526, 1531
Support: 1504, 1509, 1513

Stocks to watch: UNISEM, MPI, DKSH

FBM KLCI - in consolidation mode

Stocks on Bursa Malaysia closed on a weak note yesterday with investors turning cautious ahead of the long Chinese New Year holiday next week. However, losses on the local bourse were limited as risk appetite improved amid positive regional performance after strong German economic data and better-than-expected China’s growth figures. Investors’ interest was confined to plantation-related and smaller cap stocks. The FBM KLCI declined 1.98 points or 0.13% to close at 1,517.38 after opening 2.27 points lower at 1,517.09. Market breadth was positive with 368 gainers and 364 losers while 359 counters were unchanged. Trading volume was higher at 1.49 billion shares worth RM1.60 billion, as compared to Tuesday’s 1.44 billion shares worth RM1.79 billion.

The FBM KLCI opened 2.27 points lower at 1,517.09 and was basically moving in a sideways range-bound mode in the negative territory between the high of 1,519.23 and the low of 1,513.38 throughout the day. Chart wise, the FBM KLCI formed a Doji candlestick which indicates uncertainty and indecision of market direction. With the low volatility yesterday, the key index is likely to remain range-bound today with an immediate overhead resistance at 1,521 and a lower support at 1,509.

MACD continued to slide lower, indicating a continued loss in momentum for the short term. Nevertheless, as MACD is still above the zero-line, the current weakness may just be a short term correction. RSI (14) was slightly lower at 57.8, reflecting the mild pulled back in the index yesterday, and the key index is still mildly bullish. Stochastic continued to slide lower to 57.6, indicating a continued loss in market strength and continuation in the short term down cycle. Readings from the indicators showed that the FBM KLCI is currently in a short term consolidation mode.

The immediate short term trend of the FBM KLCI is currently down, as the key index continued to close below the 5 and 10-day SMA. However, the longer term uptrend is still intact. Immediate downside support zone is at 1,509 to 1,501 while the overhead resistance zone is at 1,521 to 1,530. The overall market is likely to remain dominated by the third liners and penny stocks while the index-linked counters are likely to continue with their consolidation. Overnight, the Dow rose +96.88 points or +0.78% to close at 12,578.95. Today, the FBM KLCI is likely to trade within a range of 1,501 to 1,526.

This week's expected range: 1502 – 1540
Today’s expected range: 1508 – 1526

Resistance: 1520, 1523, 1526
Support: 1508, 1510, 1514

FBM KLCI - a technical rebound

Stocks on Bursa Malaysia closed higher yesterday on fresh buying interest in selected heavyweights amid recent losses. The market sentiment was lifted by the stronger-than-expected economic data from China which boosted market confidence and prompted investors to take positions. The key FBM KLCI gained 10.30 points or 0.68% to 1,519.36 after opening 0.55 of a point higher at 1,509.61. Market breadth was positive with 433 gainers and 330 losers. Trading volume rose to 1.44 billion shares worth RM1.79 billion as compared with Monday’s 1.43 billion shares worth RM1.36 billion.

The FBM KLCI opened 0.55 of a point higher at 1,509.61, the low of the day, and moved higher gradually to hit the intra-day high of 1,520.27 before pulling back slightly to close at 1,519.36. Chart wise, the FBM KLCI formed a bullish white candlestick in Harami position which indicates a counter-attack of the bulls after a day of retreat, and the key index is likely to climb higher today on follow through momentum. Immediate overhead resistance zone is at 1,521 to 1,526. If the FBM KLCI is able to breakthrough this zone, then it might move higher to re-test the next resistance level at 1,530-point.

MACD continued to slide lower after making the dead-cross, indicating a continued loss in momentum. RSI (14) hooked up to 59 from 54.6, indicating a recovery of some loss strength, but is still in the mildly bullish zone. Stochastic continued to slide lower to 65, indicating a continued loss in the market strength and continuation of the down cycle. Readings from the indicators showed that the FBM KLCI is losing its momentum and is likely to continue with its consolidation until clear sign of reversal is observed.

The immediate short term trend of the FBM KLCI is down; nonetheless, the longer term trend remained up. Immediate downside support zone is at 1,509 to 1,501 while the overhead resistance zone is at 1,526 to 1,530. With the losing momentum, the FBM KLCI is likely to move range-bound within these range until a clear sign of breakout is observed. Overnight, the Dow rose +60.01 points or +0.48% to close at 12,482.07. Today, the FBM KLCI is likely to trade within a range of 1,501 to 1,531.

This week's expected range: 1502 – 1540
Today’s expected range: 1501 – 1531

Resistance: 1524, 1528, 1531
Support: 1501, 1505, 1512

Stocks to watch: HAIO, MAYBULK, PMETAL, E&O, 3A

FBM KLCI - lower on profit-taking correction

Stocks on Bursa Malaysia closed lower yesterday amid renewed worries over the Euro-zone debt crisis. The Euro-zone effects spread across Asia after Standard & Poor's downgraded its ratings on nine countries including France, Italy and Spain. The FBM KLCI lost 14.01 points or 0.92% to 1,509.06 after opening 2.68 points lower at 1,520.39. Market breadth was bearish with 542 losers and 207 gainers while 259 counters were unchanged. Turnover was lower with 1.435 billion shares valued at RM1.363 billion changed hand compared with 1.766 billion shares worth RM1.608 on Friday.

The FBM KLCI opened with a down gap of 2.68 points at 1,520.39 and slid lower throughout the day with weak intermittent rebound, and the key index ended the day at its lowest point. Chart wise, the FBM KLCI formed a bearish long black candlestick which indicates the bears were in full control for the day. With a downside breakaway gap and closing below the 5 and 10-day SMA, the key index is likely to continue its down move to test the immediate lower support zone of 1,506 to 1,501.

MACD continued to slide lower, and has just made a dead-cross over the signal-line, giving out a sell signal. Nevertheless, as MACD is above the zero-line, the current bearish signal may well be just a correction is an uptrend. RSI (14) has plunged lower to 54.6, indicating the short term relative strength of the key index has turned mildly bullish from bullish. Stochastic has also slid below the slow stochastic line to 73.2, indicating the beginning of a down cycle and weakening of the market strength. Readings from the indicators showed that the FBM KLCI has turned weak or bearish for the immediate short term, and may lead into a further correction.

The immediate short term trend of the FBM KLCI has turned down, as the key index is now closing below the very short term 5 and 10-day SMA. The short and medium term trend represented by the 30 and 60-day SMA is still up. Immediate down side support zone is at 1,506 to 1,501 provided by a cluster of long term moving averages, while the upside resistance zone is at 1,515 to 1,521. As long as the FBM KLCI does not close below the psychological support of 1,500-point level, the current down trend is viewed as just a correction to the recent uptrend.

Overnight, US market as closed for a public holiday. The Europe market was generally up. Today, the FBM KLCI is likely to trade within a range of 1,492 to 1,533.

This week's expected range: 1502 – 1540
Today’s expected range: 1492 – 1533

Resistance: 1518, 1526, 1533
Support: 1492, 1500, 1505

FBM KLCI - likely to further consolidate

Stocks on Bursa Malaysia closed marginally softer across the board last Friday. The market traded within a narrow range amid a lack of fresh leads, while investors nibbled at the lower liners and penny stocks. The FBM KLCI ended 2.49 points or 0.16% lower at 1,523.07, and week-on-week, the key index gained 8.94 points from previous Friday’s 1,514.13. Losers led gainers by 397 to 373 while 339 counters were unchanged. Turnover was higher at 1.766 billion shares valued at RM1.608 billion compared with Thursday’s 1.515 billion shares worth RM1.579 billion.

The FBM KLCI was basically in a range-bound consolidation mode with a weak upward move the whole of last week. The key index opened last Monday 0.93 point higher at 1,515.06 and pulled back to touch the intra-week low of 1,513.35 before rebounding to close Monday 7.6 points higher at 1,521.73. The benchmark index traded in narrow range on Tuesday and Wednesday making marginal gains of 0.26 and 0.3 point respectively. The FBM KLCI closed 3.27 points firmer at 1,525.56 on Thursday but ended 2.49 points lower at 1,523.07 on Friday after hitting intra-week high of 1,526.27.

On the weekly chart, the FBM KLCI formed a small white candlestick which indicates low volatility and consolidation but with an upward bias. The key index is likely to further consolidate this week with immediate overhead resistance at 1,530-point level, while the lower support zone is at 1,513 to 1,502.

On the daily chart, the FBM KLCI formed a bearish dark-cloud-cover candlestick pattern, which is a top reversal candle pattern, and hence, the key index is likely to further consolidate itself and move in a range-bound mode. The underlying trend is up as the key index continued to stay above all the short, medium and long term moving averages. Immediate support by the 10-day SMA is at 1,519 and the lower support zone at 1,506 to 1,500 formed of the cluster of longer term moving averages shall form a strong cushion area.

Weekly MACD continued to climb higher after crossing the zero-line the previous week, indicating the weekly upward momentum is still intact. Daily MACD has turned downward and the histogram also turned shorter, indicating a continued loss in the daily momentum, and hence, the FBM KLCI is likely to go into a consolidation mode. Weekly RSI (14) has hooked up to 56.7, indicating the weekly relative strength is in the mildly bullish state. Daily RSI (14) has slide lower to 63.1, reflecting the pullback on last Friday, and the daily relative strength is still in the bullish zone. Weekly Stochastic has hooked downward gently to 95.6 from 96.1 the previous week after entering the overbought zone. Daily Stochastic has also hooked downward to 85.5, and just crossed the slow stochastic line, indicating the key index’s strength might turn weaker. Readings from the weekly and daily indicators showed that the FBM KLCI’s weekly momentum is still positive while the daily momentum is turning weak, and likely to extend its consolidation.

The overall uptrend of the FBM KLCI is still intact. Immediate strong overhead resistance zone is expected at 1,530 to 1,539 formed by the down gap. If the key index is able to breakthrough this zone decisively with volume, it might continue its rally towards the 1,550-point level. Nonetheless, it is likely to go into a short term range-bound consolidation for the time being as indicated by the continued loss of momentum on the daily chart. As the key index-linked counters continue to consolidate, the market is likely to be continued dominated by the third liners and penny stocks.

Last Friday, the Dow fell -48.96 points or -0.39% to close at 12,422.06. This week, the FBM KLCI is likely to trade within a range of 1,502 to 1,540, and for today, it is likely to trade within a range of 1,516 to 1,531.

This week's expected range: 1502 – 1540
Today’s expected range: 1516 – 1531

Resistance: 1526, 1528, 1531
Support: 1516, 1519, 1521

FBM KLCI - continued its uptrend

Stocks on Bursa Malaysia closed steadier yesterday despite the softer performance of other Asian markets following the weaker Japan trade data and China's inflation data. The market moved within a narrow trading range due to a dearth of fresh market leads, as investors are awaiting the outcome of the Spanish debt sales as well as the interest rates announcement by the European Central Bank and the Bank of England. The FBM KLCI ended 3.27 points or 0.21% firmer at 1,525.56. Losers led gainers by 418 to 351 while 339 counters were unchanged. Turnover dipped to 1.515 billion shares worth RM1.579 billion from 1.910 billion shares valued at RM1.941 billion on Wednesday.

The FBM KLCI opened 1.10 point lower at 1,521.19 and slipped marginally lower to 1,520.78. It then rebounded and moved upward gradually in a narrow trading range to close at the highest point of the day. Chart wise, the FBM KLCI formed a bullish small white candlestick which indicates the bulls were in control for the day. As it was mentioned in yesterday’s report, the FBM KLCI was in range-bound consolidation mode, an upside breakout of the overhead resistance at 1,525 is likely to see the key index moving higher. The immediate strong overhead resistance is now at 1,530-point level.

MACD continued to climb higher, but its histogram also continued to turn shorter, indicating a weak upward momentum and some inherent weakness is in the building. RSI (14) was higher at 64.8, indicating a continued improvement of the short term relative strength. Stochastic was marginally higher at 87.1 and showed sign of tapering off, indicating a continuation of the up cycle amid a slight increase in the market strength. Readings from the indicators showed that the upward momentum of the FBM KLCI is improving, but at a very slow pace.

The trend of the FBM KLCI remained up, and the key index is likely to continue its uptrend journey to test the immediate resistance zone of 1,530 to 1,539. If it can break through this zone successfully with conviction, then it is likely to retest the 1,550-point psychological level. Immediate downside support zone is at 1,520 to 1,515. Overnight, the Dow rose +21.57 points or +0.17% to close at 12,471.02. Today, the FBM KLCI is likely to trade within a range of 1,517 to 1,531.

This week's expected range: 1479 – 1549
Today’s expected range: 1517 – 1531

Resistance: 1527, 1529, 1531
Support: 1517, 1519, 1522

Stocks to watch: POS, CBIP, HSL, SEALINK, XOX

FBM KLCI - closed almost unchanged

Stocks on Bursa Malaysia ended steadier yesterday with investors nibbling in lower liners and penny stocks. The FBM KLCI inched up 0.3 point to end at 1,522.29 after trading in a narrow range. Gainers led losers by 437 to 385 while 300 counters were unchanged. Turnover rose to 1.910 billion shares worth RM1.941 billion from 1.858 billion shares valued at RM1.872 billion.

The FBM KLCI opened 0.04 point higher at 1,522.03 and climb to the intra-day high of 1,523.94 within the first thirty minutes, and profit-taking activity set in to push the key index to the intra-day low of 1,518.80 at late morning before rebounding gradually to close almost unchanged. Chart wise, the FBM KLCI formed a Doji candlestick which indicates uncertainty and indecision of market direction. With a spinning-top and a Doji occurring over the last two days, the market gave a signal that the FBM KLCI is likely to continue with its range-bound consolidation process. Immediate overhead resistance is at 1,525 while the downside support level is at 1,518, and a breakout in either one direction will see the key index continue moving in that direction.

MACD was flat, but its histogram continued to turn shorter, indicating a continued loss in the index’s momentum. Nonetheless, as the index is still above the zero-line, it indicates consolidation. RSI (14) was almost flat at 63.6, indicating consolidation with a bullish undertone. Stochastic was higher at 86.4, indicating the short term up cycle is still intact. Readings from the indicators showed that the FBM KLCI is lacking in momentum and is heading for a short term consolidation.

The trend of the FBM KLCI remained up. However, as the key index already showed signs of lacking in momentum, it is likely to go into a range-bound consolidation mode. Immediate overhead resistance zone is at 1,525 to 1,530 while the downside support zone is at 1,518 to 1,513. As the volume remained active, the overall market will continue with the rotational play on the lower liners and penny stocks while the key index-link stocks consolidate.

Overnight, the Dow fell -13.02 points or -0.10% to close at 12,449.45. Today, the FBM KLCI is likely to trade within a range of 1,514 to 1,530.

This week's expected range: 1479 – 1549
Today’s expected range: 1514 – 1530

Resistance: 1525, 1527, 1530
Support: 1514, 1516, 1519

Stocks to watch: SUPERMX, MUDAJYA, HAIO

FBM KLCI - marginally higher

Stocks on Bursa Malaysia ended marginally steady after trading mixed throughout the day, with the FBM KLCI gaining a meager 0.26 of a point to end at 1,521.99. Positive industrial production index and manufacturing sales data, coupled with stronger Chinese and European equity markets aided the bourse's undertone. Gainers thumped losers by 416 to 330 while 346 counters were unchanged. Turnover rose to 1.858 billion shares worth RM1.872 billion, from Monday's 1.643 billion shares worth RM1.706 billion.

The FBM KLCI opened 1.98 points lower at 1,519.75 and slid to the intra-day low of 1,518.76. It then rebounded and moved higher gradually in a tight range to touch the intra-day high of 1,524.10 before pulling back on last minute profit-taking activity to close marginally higher. Chart wise, the FBM KLCI formed a small white spinning-top candlestick which indicates low volatility and consolidation, but with an upward bias. The key index was taking a breather after recovering from the correction last week and is poised to move higher.

MACD was higher but its histogram was shorter, indicating the momentum was still up but internal weakness was surfacing. RSI (14) was flat at 63.5, reflecting the consolidation but the key index is still in the bullish zone. Stochastic was marginally higher at 82.9, indicating the rebound is still intact. Readings from the indicators showed that the FBM KLCI was in a consolidation mode but with an upward bias.
The trend of the FBM KLCI remained up but it is lacking in momentum, and hence, the key index might continue to be in a range-bound consolidation mode. Immediate overhead resistance zone is at 1,525 to 1,530 while the downside support zone is at 1,518 to 1,513. With the volume continue to pick up, the current rotational play on the second and third liners is expected to continue. Overnight, the Dow rose +69.78 points or +0.56% to close at 12,462.47. Today, the FBM KLCI is likely to trade within a range of 1,513 to 1,530.

This week's expected range: 1479 – 1549
Today’s expected range: 1513 – 1530

Resistance: 1525, 1527, 1530
Support: 1513, 1516, 1519

Stocks to watch: CBIP, MAYBULK, MBSB, ZHULIAN, VERSATL, CENSOF

FBM KLCI - uptrend continued

Stocks on Bursa Malaysia ended broadly higher yesterday and persistent buying in selected heavyweights pushed the FBM KLCI to end at its intra-day high of 1,521.73 with a gain of 7.6 points or 0.5%. Gainers thumped losers by 491 to 264, while 301 counters were unchanged. Total turnover rose to 1.64 billion shares worth RM1.71 billion from Friday's closing of 1.47 billion shares worth RM1.39 billion.

The FBM KLCI opened 0.93 point higher at 1,515.06 but pulled back to touch the intra-day low of 1,513.35. It then rebounded to the positive territory and stayed sideways for a major part of the day, and a last minute buying in selected heavyweights pushed the key index to close at the high of the day. Chart wise, the FBM KLCI formed a bullish white candlestick which indicates a confirmed reversal of the key index after four days of consolidation. It is likely to continue climbing higher today with immediate overhead resistance zone at 1,525 to 1,530.

MACD continued to climb higher but its histogram was shorter, indicating a lack of strength and momentum of the key index. RSI (14) was higher at 63.4, indicating the relative strength of the key index is still in the bullish zone. Stochastic was higher at 80.7, and has crossed above the slow stochastic line, indicating that the short term down cycle or correction is probably over and the resumption of the up cycle. Readings from the indicators showed that the short term correction of the FBM KLCI is probably over, and the key index may resume its upward momentum.

With the up move yesterday, the FBM KLCI has resumed its overall uptrend, and is ready to move higher to re-challenge the immediate resistance level of 1,530. The resistance zone formed by the gap at 1,530 to 1,539 may post as a strong barrier to the up move, while the immediate downside support zone is at 1,513 to 1,508. With the volume remained at the current level or higher, the market is poised for a pre-Chinese New Year rally with active rotational play on the second and third liners.

Overnight, the Dow rose +32.77 points or +0.27% to close at 12,392.69. Today, the FBM KLCI is likely to trade within a range of 1,507 to 1,531.

This week's expected range: 1479 – 1549
Today’s expected range: 1507 – 1531

Resistance: 1525, 1528, 1531
Support: 1507, 1510, 1516

Stocks to watch: REDTONE, MUHIBAH, DKSH, BIOOSMO, UNISEM

FBM KLCI - likely to extend consolidation

Stocks on Bursa Malaysia ended the first trading week of 2012 weaker, in line with its regional peers as sentiment continued to be influenced by the uncertainty looming over the Euro-zone debt problem. The FBM KLCI ended last Friday 0.30 point lower at 1,514.13, after fluctuating between 1,508.93 and 1,515.27 throughout the day, and week-on-week, the key index fell 16.6 from previous Friday's close of 1,530.73. Losers outnumbered gainers by 391 to 377 while 299 counters were unchanged. Volume decreased to 1.466 billion shares, worth RM1.389 billion, from 1.668 billion shares, worth RM1.462 billion, on Thursday. Total weekly volume increased to 6.399 billion shares worth RM5.785 billion from last week’s 6.21 billion shares worth RM6.74 billion.

The FBM KLCI was basically in consolidation mode throughout the whole of last week which saw the key index opened 7.13 points lower at 1,523.60 on the first trading day of the year and closed lower on heavy profit-taking to end Tuesday at 1,513.54. The key index continued to slide lower to hit the intra-week low of 1,502.09 before rebounding slightly to close Wednesday at 1,504.22, losing another 9.32 points. On Thursday, the FBM KLCI staged a rebound and recovered some lost ground to close 10.21 points higher at 1,514.43, and on Friday, the key index traded in a range-bound manner to end the day 0.3 of a point lower at 1,514.13.

On the weekly chart, the FBM KLCI formed a bearish black hammer-like candlestick in Harami position, a top reversal candlestick pattern, which indicates profit-taking activity after a strong up move the previous week. With the appearance of this bearish Harami candle pattern, the FBM KLCI is likely to continue to consolidate this week. Nevertheless, the key index is still closing above all the moving averages on the weekly chart which indicates that it is still bullish, after down move last week may just be a pullback correction after two weeks of strong up move. Immediate overhead resistance zone is at 1,525 to 1,530, while the downside support zone is at 1,502 to 1,490.

On the daily chart, the FBM KLCI formed a white hammer-like candlestick in Harami position which indicates consolidation. The key index is now closing below the 5-day SMA but remained above the 10-day SMA, which further strengthen the perception of consolidation. Immediate overhead resistance zone is at 1,515 to 1,530 while the downside support zone is at 1,508 to 1,500, and the cluster of long term moving averages may provide some cushion to any down move.

Weekly MACD continued to climb higher, and has just made a golden-cross, sending out a bullish buy signal for the medium term. Daily MACD was also higher, but the daily histogram was getting shorter indicating a slow down in the upward momentum and the key index is moving into a consolidation mode. Weekly RSI (14) was lower at 55.4, reflecting the pullback correction, and nonetheless, it is still in the mildly bullish zone. Daily RSI (14) was marginally lower at 61, indicating the daily relative strength of the key index is still in the bullish zone. Weekly Stochastic continued to climb higher to 96.1, indicating very strong market strength and continuation of the weekly up cycle. Daily stochastic continued to slide lower to 74.4, indicating a continued loss in the daily momentum. Readings from the weekly and daily indicators showed that the FBM KLCI is bullish from the weekly perspective, while from the daily side, it is currently undergoing a consolidation phase, and the key index should resume it upward momentum once the correction is over.

The longer term trend of the FBM KLCI remained bullish and up, while for the immediate short term, it is in correction mode. With the longer term trend still up, the FBM KLCI is likely to resume its short term uptrend once the current correction phase is over. While the index link heavyweights may continue to consolidate, the overall market is likely to be dominated by active trading in second and third liners stock on rotational play. Last Friday, the Dow fell -55.78 points or -0.45% to close at 12,359.92. This week, the FBM KLCI is likely to trade within a range of 1,479 to 1,549, and for today, it is likely to trade within a range of 1,503 to 1,522.

This week's expected range: 1479 – 1549
Today’s expected range: 1503 – 1522

Resistance: 1517, 1520, 1522
Support: 1503, 1506, 1510

Stocks to watch: UNISEM, PUNCAK, KPS, DKSH

FBM KLCI - rebounded to close higher

Stocks on Bursa Malaysia ended on a firmer note yesterday with the main index staying above the psychological 1,500-point level. Gains in plantation, palm oil-related and finance counters enabled the market barometer to rebound and close in the black for the first time since trading in the new year began. The FBM KLCI ended at 1,514.43, up 10.21 points, or 0.68%, after opening 2.83 points better at 1,507.05. Gainers outnumbered losers by 467 to 325, while 324 counters were unchanged. Volume increased to 1.668 billion shares worth RM1.462 billion, from 1.658 billion shares worth RM1.528 billion previously.

The FBM KLCI opened 2.83 points higher at 1,507.05 and slid to the intra-day low of 1,504.54 on continued profit-taking activity. It then rebounded and moved higher with mild pulled back correction along the way, and it touched the intra-day high of 1,514.82 before closing the day slightly off high. Chart wise, the FBM KLCI formed a bullish Harami candlestick, a bottom reversal candlestick pattern formation, which indicates the bulls have came back to take control after two days of correction. The key index rebounded to close higher after hitting into the support zone of 1,506 to 1,500 provided by the clusters of long term moving averages, and it may continue its upward momentum to move higher today.

MACD has hooked upward slightly, but its histogram continued to turn shorter, indicating a state of consolidation. RSI (14) has hooked upward to 61.2, indicating the short term relative strength has moved back to the bullish zone. Stochastic, nonetheless, has crossed below the 80-level to 75.6, indicating a continuation of the short term down cycle and continued weakness in the key index. Mixed signals from the indicators showed that the FBM KLCI has gone into a consolidation phase.

The FBM KLCI has again closed above the short term 5-day SMA after closing below it yesterday, reflecting the rebound and the overall trend of the FBM KLCI remained up as the key index continued to stay above all the moving averages. Immediate overhead resistance zone is at 1,515 to 1,525 while the downside support zone is at 1,505 to 1,500. Overnight, the Dow fell a marginal -2.72 points or -0.02% to close at 12,415.70. Today, the FBM KLCI is likely to trade within a range of 1,497 to 1,525.

This week's expected range: 1463 – 1571
Today’s expected range: 1497 – 1525

Resistance: 1518, 1522, 1525
Support: 1497, 1500, 1507

Stocks to watch: MAS, XDL, HANDAL, PROTON

FBM KLCI - lower on continued profit-taking correction

Stocks on Bursa Malaysia ended mixed yesterday as the benchmark FBM KLCI continued to head south to close 9.32 points or 0.62% lower at 1,504.22 on the second trading day of 2012, after touching an intra-day high of 1,525.14. Losers outnumbered gainers by 404 to 387, while 318 counters were unchanged. Turnover was slightly higher at 1.658 billion shares worth RM1.527 billion compared with 1.604 billion shares valued at RM1.406 billion on Tuesday.

Taking cue from the strong gain on Wall Street overnight, the FBM KLCI opened 3.62 points higher at 1,517.69 and surged to the intra-day high of 1,525.14 within the first six minutes of trading, and profit-taking immediately set in which pushed the key index lower for the rest of the day to hit the intra-day low of 1,502.09 before rebounding slightly to close at 1,504.22. Chart wise, the FBM KLCI formed a bearish black candlestick which indicates the bears were fully in control for the day, and the key index may continue to consolidate today. The bearish down move yesterday was anticipated as mentioned in yesterday’s analysis, and is a confirmation to the bearish Harami pattern formed on Tuesday. The key index has now moved into the confine of the support zone of 1,500 to 1,506, and the immediate key support level is the 1,500-point psychological support level.

MACD has hooked downward slightly, and together with a shorter histogram it indicates a slow down in the upward momentum due to the correction over the last two sessions. RSI (14) continued to slide lower to 57.9, indicating the relative strength of the key index has turned mildly bullish from bullish a day earlier. Stochastic continued to slide lower to 82.3, reflecting the correction and indicating possible further consolidation in the key index. Readings from the indicators showed that the FBM KLCI has entered a short term correction phase after the recent rally.

The FBM KLCI has closed below the 5-day SMA, indicating the key index has gone into a short term correction mode. Nevertheless, the overall trend of the FBM KLCI remained up. Immediate overhead resistance zone is at 1,511 to 1,530 while the downside support zone is at 1,502 to 1,490 with the 10-day SMA providing support at 1,497-point level. Judging from the volume and value transacted, the overall market is likely to be still dominated by the second and third liners while the blue-chips counters consolidate themselves.

Overnight, the Dow rose +21.04 points or +0.17% to close at 12,418.42. Today, the FBM KLCI is likely to trade within a range of 1,472 to 1,548.

This week's expected range: 1463 – 1571
Today’s expected range: 1472 – 1548

Resistance: 1519, 1534, 1548
Support: 1472, 1487, 1495

FBM KLCI - pullback correction on profit-taking

Bursa Malaysia started the New Year on a weak note yesterday, bucking the regional trend, as investors locked in profits from a rally on the last trading day of 2011. It was the only market in the Asia Pacific that slumped yesterday, with profit-taking in banking stocks steering the key FBM KLCI index 17.19 points, or 1.12%, lower to 1,513.14. The overall market was mixed, with many second and third liners making gains. Gainers led losers by 446 to 325 while 278 counters were flat. Turnover surged to 1.604 billion shares worth RM1.406 billion compared with last Friday’s 1.329 billion shares worth RM1.527 billion.

The FBM KLCI opened 7.13 points lower at 1,523.60 and slid lower for the rest of the day with intermittent weak rebounds. It touched the intra-day low of 1,512.08 before rebounding slightly to end the day at 1,513.14. Chart wise, the FBM KLCI formed a bearish black candlestick in Harami position which indicates heavy profit-taking activity throughout the day, and the bearish Harami pattern is also a top reversal candle pattern when it occurs after an up move. The key index may continue to consolidate today but with an upward bias as the underlying trend is still up. Immediate support zone is at 1,511 to 1,500.

MACD continued to move higher but at a slower pace, as shown by the shorter histogram, indicating a reduction in the upward momentum. RSI (14) fell to 62.3 from 71.7 on last Friday, reflecting the correction, and nonetheless, the short term relative strength is still in the bullish zone. Stochastic fell lower to 90.4 and has crossed below the slow stochastic line, indicating a pullback correction in the key index and the possible beginning of a short term down cycle which needs more data to confirm. Readings from the indicators showed that the FBM KLCI is undergoing a pullback correction after the strong up move on last Friday, which is in line with yesterday’s forecast.

The trend of the FBM KLCI is up. While the correction may continue to push the key index lower, strong support is expected at the 1,506 to 1,500 zone provided by the cluster of the long term moving averages which now turn support, and immediate support is at 1,511 provided by the 5-day SMA. The overall market is expected to be still dominated by active trading in second and third liners while the index-link counters may continue to consolidate.

Overnight, the Dow rose +179.82 points or +1.47% to close at 12,397.38. Today, the FBM KLCI is likely to trade within a range of 1,497 to 1,536.

This week's expected range: 1463 – 1571
Today’s expected range: 1497 – 1536

Resistance: 1521, 1528, 1536
Support: 1497, 1504, 1509

Stocks to watch: HIBISCS, HIBISCS-WA, MAS, PERISAI, BHIC, IGB, MBSB,SUPERMX, TOPGLOV

FBM KLCI - uptrend likely to continue

Stocks on Bursa Malaysia ended the final week of 2011 on a strong note as investors look for year-end cheer. Late window-dressing in heavyweights helped lift the bourse to ensure the benchmark index ended the year above 1,500. Interests were confined to high-yielding stocks in the banking, plantation, technology and consumer sectors. The FBM KLCI closed at its best in nine months, with a gain of 24.04 points, or 1.60%, to 1,530.73. Week-on-week, the key index gained 34.58 points or 2.31% from previous Friday’s close of 1,496.15. Year-on year, the benchmark gained 11.82 points from 1,518.91 on 30 December 2010. Market breadth was positive with gainers leading losers by 468 to 327. Volume declined to 1.33 billion shares worth RM1.53 billion from 1.59 billion shares valued at RM1.16 billion registered on Thursday.

As a quick recap, 2011 was a year of roller-coaster ride whereby the market witnessed a number of unpleasant surprises from conflicts in the Middle East and North Africa to the natural disasters in Japan. Economically, Greece's debt problem had triggered instability in the Euro-zone while over in the US, the Standard and Poor’s downgrade of the US' triple-A rating sparked panic selling across the globe. Despite all the negativities, the FBM KLCI still surged to close the year at 1,530.73, surpassing last year's close of 1,518.91, and makes it the best performing index in this region.

The FBM KLCI was basically on an uptrend mood last week with the key index closing the first trading day of the week at 1,500.91 on Tuesday, after sliding to the intra-week low of 1,490.16. The benchmark index continued its rise over the next three trading days despite numerous profit-taking activities to end the week at its highest point of 1,530.73. On the weekly chart, the FBM KLCI formed a bullish white candlestick which indicates the bulls were in action and sent the key index passed the resistance at 1,506 posted by the 60-week SMA. With this strong up move, the FBM KLCI has already closed above all the weekly moving averages, and has resumed its bullish uptrend.

On the daily chart, the FBM KLCI formed a bullish white Marubozu candlestick which indicates the bulls were fully in control, and it closed right on the target level of 1,530 as forecasted in the last few analysis. With the strong upward momentum, the key index is likely to surge further this coming week. However, the gap area at 1,530 to 1,546 may post as a strong resistance zone, with immediate resistance level envisaged at 1,539. If the FBM KLCI is able to breakthrough this strong resistance zone, then it stand a high chance of running higher to re-test the all time high level of 1,594.74 registered on July 8 2011. Nonetheless, as the key index was being pushed up in the last minute, this may attract some profit-taking on the index-link counters which may cause a dip in the index this week.

Weekly MACD continued to climb higher, and so is the daily MACD, indicating a continued improvement in the weekly and daily momentum. Weekly RSI (14) was higher at 58.4, indicating the weekly relative strength is approaching the bullish zone. Daily RSI (14) has surged to 71.1 from 64.8 a day earlier, indicating the short term relative strength of the key index has turned bullish. However, it has also entered the short term overbought level, the 70-level, for the first time after breaking below it on 11th July 2011, and some profit-taking is likely to happen. Weekly Stochastic continued to climb higher to 92.9, indicating a strong weekly market strength and continuation of the weekly up cycle. Daily Stochastic, however, only gained gently to 97.5 from 97.1 on Thursday, indicating some inherent technical weakness, and some profit-taking pullback might happen. Readings from the weekly and daily indicators showed that the FBM KLCI has turned bullish and the upward momentum is likely to carry the key index higher amid some mild profit-taking activity.

The trend of the FBM KLCI is now up and has turned bullish as the key index is now closing above all the short, medium and long term moving averages. The uptrend is likely to continue with intermittent profit-taking activity. It is likely to see the FBM KLCI re-testing the all time high level within the first half of year 2012 as plenty of positive news flows were likely this year given the feel good factors generated from the 13th general election which is widely speculated to be held within the first half of this year and the rolling out of the Economic Transformation Programme (ETP).

Last Friday, the Dow fell -69.48 points or -0.57% to close at 12,217.56. This week, the FBM KLCI is likely to trade within a range of 1,463 to 1,571, and for today, it is likely to trade within a range of 1,493 to 1,553.

This week's expected range: 1463 – 1571
Today’s expected range: 1493 – 1553

Resistance: 1539, 1546, 1553
Support: 1493, 1501, 1515