Stocks on Bursa Malaysia ended higher for the second day, taking cue from Wall Street’s overnight gains and higher regional markets. The FBM KLCI opened higher, but soon slipped into the red and fluctuated in a tight range before late buying lifted the index to close 3.39 points or 0.27% higher at 1267.15. Market breadth was positive throughout the day with gainers led losers by 458 to 222 while 248 counters were unchanged. Volume was lower at 865 million shares worth RM1.131 billion.
Chart wise, the FBM KLCI continues its technical rebound for a second day after the recent sell down, it formed a small white candlestick which indicates cautious up move which lacks momentum.
MACD continued to move lower but its histogram is shorter indicating a reduced in downward momentum. RSI at 40 is still in the bearish zone. Fast Stochastic has just crossed its slow Stochastic but is still below 20. Overall, the indicators are reflecting a weak market conditions.
The short term trend is down as indicated by the short term moving averages, while the longer term trend, nonetheless, is still up. On its up move, the index is faced with a strong resistance zone at 1270 to1280 level, while its immediate support now lies at 1253 to 1260. If the 1253 level is breached, the index may fall further to test its next critical support at 1240.
Today, the FBM KLCI is likely to trade within a range of 1259 to 1273
This week's expected range: 1225 – 1287
Today’s expected range: 1259 – 1273
Resistance: 1269, 1271, 1273
Support: 1259, 1261, 1264
Stock to watch: AFFIN
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