Stocks on Bursa Malaysia ended mixed yesterday buoyed by bargain hunting and gains in selected blue-chip stocks. Investors’ risk appetite improved after Eurozone finance ministers decided to seal a second bailout for Greece that will resolve its immediate financing needs. The FBM KLCI closed 3.21 points or 0.21% higher at 1,563.78 after fluctuating within 1,564.86 and 1,558.13 point throughout the day. Market breadth was negative with losers led gainers by 442 to 370 while 345 counters were unchanged. Total turnover advanced to 1.894 billion shares, worth RM1.747 billion, from 1.864 billion shares, worth RM1.611 billion, transacted on Monday.
The FM KLCI opened 2.38 points higher at 1,562.98 and slipped lower to touch the intraday low of 1,558.13 in early morning trade. The key index rebounded in the afternoon and rallied to the intra-day high of 1,564.86 before pulling back on profit-taking to close off high. On the daily chart, the FBM KLCI formed a white hanging-man candlestick which is a top reversal candlestick pattern, and hence, the key index might make a pause at this level before continuing its uptrend. Immediate overhead resistance is at 1,567-point level.
MACD continued to slide lower but is tapering off, and the histogram is also shorter, indicating the key index is in a consolidation mode. The MACD is just marginally higher above the signal-line, and a crossed below the signal-line would generate a sell signal. RSI (14) was higher at 65.9, indicating the short term relative strength is in the bullish zone. Stochastic was at 89.2, and has just made a cross above the slow stochastic line, indicating the market strength has again pickup and the short term up cycle has resumed. Readings from the indicators showed that the FBM KLCI is in a range-bound consolidation mode but with an upward bias.
The trend of the FBM KLCI is up, and the key index is likely to continue its range-bound consolidation but with an upward bias. Immediate overhead resistance zone is at 1,567 to 1,577 while the downside support zone is at 1,558 to 1,549. Rotational plays on second and third liners are likely to continue dominating the active scene while the heavyweights may consolidate. Overnight, the Dow rose +15.82 points or +0.12% to close at 12,965.69. Today, the FBM KLCI is likely to trade within a range of 1,552 to 1,572.
This week's expected range: 1531 – 1584
Today’s expected range: 1552 – 1572
Resistance: 1567, 1569, 1572
Support: 1552, 1555, 1559
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