Stocks on Bursa Malaysia ended broadly higher yesterday on sustained buying interest in blue-chips, as investors sentiment was shored up by the firm close on Wall Street. Consumer stocks were in focus while some banking counters remained among the favorites on expectation of strong second quarter growth. The FBM KLCI rose 3.35 points or 0.25% higher to close at 1,341.02, but off the intra-day high of 1,345. Gainers outnumbered losers by 442 to 298 while 277 counters were unchanged. Turnover was lower at 874 million shares worth RM1.268 billion compared with 1.126 billion shares worth RM1.321 billion on Tuesday.
The FBM KLCI opened with a 2.71 points up gap and surged to the intra-day high of 1344.96, the up move was capped by active profit-taking activities which sent the key index down to the intra-day low of 1338.83 before last minute buying lifted it to close at 1341.02. The price action leads to the formation of a shooting-star like candlestick which is a top reversal signal. This goes to show that the key index faces strong resistance when it enters the resistance zone at 1340 to 1350. Immediate support zone now lies at 1320 to 1330.
MACD continued to move higher, while its histogram was flat, indicating the upward momentum remained intact. RSI(14) at 63.4 continued to inch higher into the bullish zone. Stochastic at 88 has crossed above its slow stochastic, indicates that the market strength remained strong.
The FBM KLCI is currently staying above all the short and long term moving averages, which will give support to the key index to move higher. Hence, there is a good likelihood that the key index may re-test the 1350 psychological resistance.
The FBM KLCI is expected to continue tracking the performance of regional key indexes due to a lack of fresh leads locally. Overnight, the Dow closed -109.43 points or -1.07% lower at 10,120.53. Today, the FBM KLCI is likely to trade within a range of 1330 to 1351.
This week's expected range: 1300 – 1360
Today’s expected range: 1330 – 1351
Resistance: 1344, 1347, 1351
Support: 1330, 1335, 1338
Stock to watch: NYLEX
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