Stocks on Bursa Malaysia ended mixed yesterday, with profit-taking activities seen in selected blue-chip counters. Investor sentiment was dampened following an increase in oil prices and the absence of a new catalyst for markets regionally, which turned in unimpressive performances. The FBM KLCI rose slightly by 0.27 of a point or 0.017% to close at 1,559.04 after opening 1.86 points higher at 1,560.63. Losers led gainers by 455 to 327 while 341 counters were unchanged. Total turnover declined to 1.642 billion shares worth RM1.633 from the 1.695 billion shares worth RM1.941 billion last Friday.
The FBM KLCI opened 1.86 points higher at 1,560.63 and surged to the intra-day high of 1,565.87 within the first fifteen minutes after market opened, and profit-taking activity which followed sent the key index lower for the rest of the day to hit the intra-day low of 1,558.29 before rebounding slightly to close off low. Chart-wise, the FBM KLCI formed a black inverted hammer candlestick which indicates buyers were initially dominant in pushing up the key index but was later succumb to heavy selling pressure. A black inverted hammer candlestick which appeared near the top of an uptrend indicates toppishness and may forewarn of a possible trend reversal.
MACD continued to slide lower, indicating a continued loss in momentum. RSI (14) was just marginally higher at 61.6, indicating the short term relative strength is still at the borderline of the bullish zone. Stochastic slid lower to 75.8, indicating the continued loss in market strength and the beginning of a short term down cycle. Readings from the indicators showed that the FBM KLCI is in a consolidation mode but is still in the bullish territory.
The short term trend of the FBM KLCI is currently sideways, while the medium and longer term trend remained up. The key index is currently trapped within the consolidation range with a boundary of 1,567 and 1,549, and a breakout in either one direction will likely see the key index continue moving in that direction. With the overall volume continued to shrink, the consolidation process is likely to extend. However, rotational play on the lower liners may continue to dominate the active scene.
Overnight, the Dow fell a marginal -1.44 points or -0.01%to close at 12,981.51. Today, the FBM KLCI is likely to trade within a range of 1,548 to 1,574.
This week's expected range: 1541 – 1577
Today’s expected range: 1548 – 1574
Resistance: 1564, 1569, 1574
Support: 1548, 1553, 1556
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