FBM KLCI - fraction of a point below 1,500

Stocks on Bursa Malaysia ended mostly lower yesterday but modest gains in finance heavyweights Maybank and CIMB managed to push the benchmark index into the positive territory. Lack of follow-through support after the market barometer crossed the 1,500-mark in early trade, kept the benchmark index in the red most of the day. Investors were cautious and the global markets were volatile ahead of the US Federal Reserve's monetary policy meeting next week. The benchmark FBM KLCI ended almost unchanged at 1499.44, making a marginal gain of 0.33 of a point or 0.02%. Decliners led advancers by 427 to 350 while 287 counters were unchanged. Turnover was lower at 1.137 billion shares worth RM1.634 billion from 1.169 billion shares worth RM1.636 billion on Wednesday.

The FBM KLCI opened 1.08 points higher at 1500.19 and climb to the intra-day high of 1501.57 in the first hour of trade, heavy profit-taking activities that appeared pressed the key index to the intra-day low of 1495.55, before bargain hunting activities that surfaced in the afternoon lift the key index off low to closed at 1499.44. Chart-wise, the FBM KLCI formed a Doji candlestick with a long lower shadow which indicates the key index was taking a pause, and was undecided to move further. Hence, the key index might goes into consolidation before making its move to challenge the historical high level of 1524.69.

MACD continued to slide lower but in a much reduced pace and is turning almost flat, its histogram, however, is getting shorter upward, indicating a reduction in the bearish momentum. RSI (14) at 68.9 is marginally higher, but is tapering off, indicating a slow down in the upward momentum. Stochastic at 79.5 continued to climb higher, signifying the short term up cycle is still intact. Mixed signals of the indicators are indicating a possible consolidation of the FBM KLCI.

The FBM KLCI is currently still in a bullish state as it stays above all its short, medium and long term moving averages. However, from the readings of the indicators, it shows sign of tiredness, hence, might goes into consolidation before picking up steam to challenge the historical high of 1524.69. Overnight, the Dow fell -12.33 points or -0.11% lower to close at 11,113.95. Today, the FBM KLCI is likely to trade within a range of 1490 to 1508.

This week's expected range: 1459 – 1516
Today’s expected range: 1490 – 1508

Resistance: 1503, 1505, 1508
Support: 1490, 1493, 1496

Stocks to watch: GHLSYS, KFC, VS

FBM KLCI - retreated from new high on heavy profit-taking

Stocks on Bursa Malaysia ended mixed yesterday with gains seen in the finance counters amid weak performances of the overseas market, following the slump at the Hong Kong and China stock markets. The FBM KLCI closed 2.17 points or 0.14% higher at 1499.11, after briefly touching 1504.19. Decliners outnumbered advancers by 497 to 328 while 283 counters were unchanged. Turnover was lower at 1.169 billion shares worth RM1.636 billion from Tuesday’s 1.374 billion shares worth RM1.874 billion.

The FBM KLCI opened 0.74 point lower at 1496.20 but surged to the intra-day high of 1504.37 within the first half an hour after market opened. Heavy profit-taking activities immediately appeared which sent the key index down to 1496.73 before late afternoon bargain hunting activities lift the key index to close off low at 1499.11, just 0.89 points below the 1,500-point key psychological resistance level. Chart-wise, the FBM KLCI formed a shooting-star candlestick, which is a bearish top reversal signal, hence, the key index is likely to correct downward further. Immediate support zone for the key index is found at 1493 to 1478, while the overhead resistance zone is at 1500 to 1505.

MACD continued to slide lower, however, its histogram continued to turned shorter upward, indicating a slow down in the bearish downward momentum, and the building up of positive momentum. RSI (14) continued to climb higher into the bullish zone and is now at 68.7. Stochastic is at 70.5, and has started to move higher, indicating the beginning of an up cycle. Signals from the indicators are signaling a bullish outlook for the FBM KLCI in the short term.

The underlying uptrend of the FBM KLCI remained intact, and as the FBM KLCI has made an attempt in testing the 1500-point level, it is expected to continue testing the level in the near term. Overnight, the Dow fell -43.18 points or -0.39% lower to close at 11,126.28. Today, the FBM KLCI is likely to trade within a range of 1487 to 1513.

This week's expected range: 1459 – 1516
Today’s expected range: 1487 – 1513

Resistance: 1504, 1508, 1513
Support: 1487, 1491, 1495

Stocks to watch: DNP, KFC, CSCSTEEL, SAPCRES, YTLLAND, KIANJOO