Stocks on Bursa Malaysia ended marginally higher last Friday on improved sentiment. The FBM KLCI rose 1.85 points or 0.12% to 1,603.12 after hovering between 1,600.75 and 1,604.71, while on a Friday-to-Friday basis the key index gained 4.25 points from 1,598.87 registered the previous Friday. Gainers led losers by 400 to 325 while 355 counters were unchanged. Total volume surged to 1.348 billion shares worth RM1.656 billion from Thursday’s 1.108 billion shares valued at RM1.601 billion, while total weekly volume declined to 4.638 billion shares, valued at RM5.913 billion, from previous week’s turnover of 5.41 billion shares worth RM6.23 billion as last week was holiday shortened due to a public holiday on Wednesday.
The FBM KLCI opened last week on a black day which saw the key index sliding to the intra-day low of 1,588.58, losing 10.29 points at its worst before rebounding to close off low at 1,591.58. Taking cue from the weak performance on Wall Street overnight, the FBM KLCI opened with a down gap of 3.51 points at 1,587.77 and slid lower to the intra-week low of 1,586.99 before rebounding to close in the positive territory with a 5.89 points gain at 1,597.17. Bursa Malaysia was closed on Wednesday in conjunction with the installation ceremony of Seri Paduka Baginda Yang di-Pertuan Agong. The FBM KLCI continued to move higher on Thursday with a gain of 4.1 points to 1,601.27 and Friday saw the benchmark index stand firmly above the 1,600-point level and ended the week at 1,603.12.
On the weekly chart, the FBM KLCI formed a white hanging-man candlestick, which indicates the bears were initially strong in driving the index lower but later the bulls re-surfaced and push the key index back to the positive territory. Technically, the appearance of a hanging-man candlestick after an uptrend indicates weakness is surfacing and a possible reversal is in sight. On the daily chart, the FBM KLCI formed a white spinning-top candlestick which indicates indecision of market direction and a possible reversal ahead. Hence, the key index may take a pause to move range-bound with an upward bias as the underlying longer term trend is still up. Immediate downside support zone is envisaged at 1,587 to 1,579 provided by the 5 and 10-week SMA, while the immediate overhead resistance is at 1,609.33, the all-time-high level.
Weekly MACD continued to rise, but with a slower momentum as shown by the shorter histogram. Daily MACD was marginally high but is still below the signal line, and the daily histogram was shorter upward, indicating a very gradual pickup in the momentum. Weekly RSI (14) was higher at 67.4 and the daily RSI (14) was also higher at 62.2, indicating both the weekly and daily relative strength are in the bullish zone. Weekly Stochastic oscillator was higher at 94.7 but showed sign of tapering off, indicating a slow down in the weekly upward momentum. Daily stochastic hooked up to 68.7 from 58.8, and has crossed above the slow stochastic line, indicating the short term down cycle or correction was over and a continuation of the uptrend. Readings from the weekly and daily indicators showed that the FBM KLCI is still in a bullish state, but the upward momentum was a bit weak, and hence, the key might go into a range-bound consolidation but with an upward bias.
The overall uptrend of the FBM KLCI remained intact as the key index continued to stay above all the short, medium and long term moving averages. However, the upward momentum was a little weak as shown by the momentum indicators. In the absence of strong stimulus on the horizon to spark a desired rally to bring the market higher, the FBM KLCI may sustain the range-bound pattern with a slight positive bias for another week or until a clearer picture emerges.
Last Friday, the Dow fell -136.99 points or -1.05% to close at 12,849.59. This week, the FBM KLCI is likely to trade within a range of 1,574 to 1,623, and for today, it is likely to trade within a range of 1,597 to 1,609.
This week's expected range: 1574 – 1623
Today’s expected range: 1597 – 1609
Resistance: 1605, 1607, 1609
Support: 1597, 1599, 1601
Stocks to watch: KFM, CYPARK, N2N, CANONE, JOHOTIN
No comments:
Post a Comment