Stocks on Bursa Malaysia ended mixed yesterday despite the
weaker regional markets on mounting fears that Europe’s debt crisis may affect
bigger economies such as Spain and Italy. Gains in plantations and banking
stocks helped the FBM KLCI to close 5.5 points, or 0.35% higher at 1,580.67
after opening 3.39 points lower at 1,571.78. Losers led gainers by 375 to 343
while 310 counters were unchanged. Turnover rose to 1.24 billion shares worth
RM2.9 billion from 920.86 million shares worth RM920.86 million on Wednesday.
Taking cue from the weak performance of Wall Street
overnight, the FBM KLCI opened 3.39 points lower at 1,571.18 and slipped to the
intra-day low of 1,569.99, losing 5.18 points at its worst. The key index then
rebounded to gradually moves higher to hit the intra-day high of 1,582.03
before closing off high. Chart-wise, the FBM KLCI formed a bullish white
candlestick which continues its current uptrend and closed right above the 50
and 60-day SMA resistance at 1,579. With this bullish up move, the FBM KLCI is
likely to climb higher to challenge the next target of 1,591, and if the key
index is able to close above the 1,591-point level, the current short term
downtrend is considered reversed.
MACD continued to climb higher and so is the histogram,
indicating continued gain in the upward momentum. RSI (14) was higher at 57.5,
indicating a continued improvement in the short term relative strength to a
mildly bullish state. Stochastic was also higher at 76.6, indicating a
continuation of the up cycle and improvement of the market strength. Readings from the
indicators showed that the FBM KLCI is gradually turning bullish, and hence
might move higher.
The trend of the FBM KLCI has turned up as the key index is
now closing above all the short, medium and long term moving averages, and it
has also broke above the upper resistance trend line of the downtrend channel.
The next higher target of the FBM KLCI is the 1,591 resistance level which is
an important level to watch.
Overnight, the Dow fell -26.41 points or -0.21% to close at 12,393.45.
Today, the FBM KLCI is likely to trade within a range of 1,561 to 1,594.
This week's expected range: 1517 – 1573
Today’s expected range: 1561 – 1594
Resistance: 1586, 1590, 1594
Support: 1561, 1565, 1573
Stocks to watch: HIBISCS, HIBISCS-WA, MUDAJYA, YINSON
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