FBM KLCI - higher on strong buying momentum

Stocks on Bursa Malaysia surged yesterday led by CIMB and Petronas Chemicals spurred by positive sentiment in regional markets as well as the country's manufacturing sales figures. The FBM KLCI gained 11.23 points or 0.74% to 1521.29 after opening 2.73 points better at 1512.79. Gainers led losers by 494 to 307 while 267 counters were unchanged. Total volume rose to 1.525 billion shares, valued at RM2.481 billion, from Wednesday’s 1.084 billion shares, valued at RM2.176 billion.

The FBM KLCI opened with an up gap of 2.73 points at 1512.79 and surged to the early high of 1515.85 within the first twenty minutes. Profit-taking activities surfaced and pressed the key index down to the intra-day low of 1511.01. However, strong buying interest which surfaced near noon continuously pushed the key index higher to close at the intra-day high of 1521.29. Chart-wise, the FBM KLCI formed a bullish white candlestick which indicates continuation of the reversal pattern formed on Wednesday. With the bullish move, the key index is expected to continue with its upward momentum to re-test the recent historical high of 1528.01 and 1531.99 soon.

MACD continued to move higher after making the golden-cross on Wednesday, indicating the change in the momentum to the positive side. RSI (14) moved higher to 63.5, and is back to the bullish zone. Stochastic at 90.6 also continued to surge higher into the short term overbought zone, which indicates the market strength is turning strong. Signals from the indicators indicate that the underlying short term momentum of the FBM KLCI is again turning bullish after the recent correction.

The FBM KLCI is now above all its moving averages which indicate the trend change from short term sideways consolidation to bullish uptrend. The medium and long term uptrend remained intact. Immediate overhead resistance zone is at 1528 to 1532 while the downside support zone is at 1510 to 1500. With the improving volume, the market is expected to remain buoyant.

Overnight, the Dow loss a marginal -2.42 points or -0.02% lower to close at 11,370.06. Today the FBM KLCI is likely to trade within a range of 1504 to 1532.

This week's expected range: 1446 – 1532
Today’s expected range: 1504 – 1532

Resistance: 1524, 1528, 1532
Support: 1504, 1507, 1514

FBM KLCI - resumed its short term uptrend

Stocks on Bursa Malaysia ended higher yesterday with continued buying in CIMB and TENAGA lifting the market barometer despite a mixed regional market performance. The FBM KLCI gained 8.32 points to 1510.06, after opening 2.78 points higher at 1504.52. Gainers led losers by 458 to 310 while 277 counters were unchanged. Total volume rose to 1.084 billion shares, valued at RM2.176 billion, from Monday’s 846 million shares, valued at RM1.56 billion.

The FBM KLCI opened with an up gap of 2.78 points at 1504.52 and surged to the intra-day high of 1513.24 within the first thirty minutes, and profit-taking activities sent the key index lower for most part of the day, but a last minute buying of selected heavyweights helped lift the key index to close off low at 1510.06. Chart-wise, the FBM KLCI formed a bullish white candlestick which staged a breakout from its recent consolidation range. The key index managed to breakthrough the resistance at 1510 to reach 1513 and rest on it at close; it is likely that the key index will continue its up move today to re-test higher resistance levels.

MACD continued to move higher, and has just made a bullish golden-cross over its signal line, which is a strong buy signal, indicating the building up of bullish momentum. RSI (14) at 58.2 also moved higher into the mildly bullish zone. Stochastic at 81.4 indicates the market strength is turning strong for the short term. Readings from the indicators indicates that the FBM KLCI is moving out from its consolidation and is gaining strength to move higher.

Short term trend has again turned up as the 5-day moving average (MA) has firmly crossed above the 10-day MA, and the key index is also above all its MAs. The medium and long term uptrend remained intact. Immediate overhead resistance zone is at 1513 to 1532, while the downside support zone is at 1500 to 1474.
Overnight, the Dow gained +13.32 points or +0.12% higher to close at 11,372.48. Today the FBM KLCI is likely to trade within a range of 1496 to 1522.

This week's expected range: 1446 – 1532
Today’s expected range: 1496 – 1522

Resistance: 1514, 1518, 1522
Support: 1496, 1500, 1505

Stocks to watch: AIRASIA, KNM, TDM, OSK, KFIMA, UEMLAND

FBM KLCI - marginally higher on lower volume

Stocks on Bursa Malaysia closed mixed on Monday on mild buying interests in selected finance and plantation-related stocks which helped the benchmark index to stay in positive territory. The FBM KLCI rose by 0.76 point or 0.05% to close at 1501.74, after opening 4.68 points higher at 1505.66. Losers led gainers by 368 to 359 while 278 counters were unchanged. Total volume fell to 846 million shares valued at RM1.56 billion from 966 million shares valued at RM1.64 billion on last Friday. Bursa Malaysia was closed for public holiday yesterday.

The FBM KLCI opened with an up gap of 4.68 points but traded lower throughout the day; it touched the intra-day low of 1497.61 but rebounded to close off low on last minute buying in selected heavyweights. Chart-wise, the FBM KLCI formed a black hanging-man like candlestick which indicates sellers were dominant. The key index is now resting on the 20 and 30-day moving averages (MA) which has given the immediate support to the key index.

MACD is in the positive territory and continued to climb higher, albeit still below its signal-line, indicates a gradual gained in the upward momentum. RSI (14) at 53.6 has gently hooked up, and is still in the neutral zone. Stochastic at 75.7 has continued to climb higher, indicating the continuation of the short term up cycle. Readings from the indicators indicates the FBM KLCI is still generally weak in its momentum, and hence might continue to stay sideways.

The short term trend of the FBM KLCI is currently sideways, nonetheless, its medium to long term trend is still up. Immediate overhead resistance zone is at 1510 to 1532 while the downside support is at 1490 to 1474. With the volume shrinking to below 1 billion shares, the market is expected to remain slow and will be range-bound or sideways in the short term.

Overnight, the Dow fell a marginal -3.03 points or -0.03% lower to close at 11,359.16. Today the FBM KLCI is likely to trade within a range of 1489 to 1514.

This week's expected range: 1446 – 1532
Today’s expected range: 1489 – 1514

Resistance: 1506, 1510, 1514
Support: 1489, 1493, 1497

FBM KLCI - further consolidation with an upward bias

Stocks on Bursa Malaysia went through a choppy week last week with the benchmark FBM KLCI swinging up and down in a sideways consolidation mode, but eventually making a positive gain of 8.93 points, week-on-week, to close last Friday at 1500.98 from previous Friday’s 1492.05. Weekly volume fell to 4.89 billion shares valued at RM9 billion from 6.18 billion shares valued at RM11.32 billion the previous week.

The FBM KLCI opened 3.48 points lower at 1488.57 on last Monday and fell to the intra-week low of 1474.02, losing as much as 18.03 points at its worst, but recovered gradually on bargain-hunting activities in line with the general recovery at key regional markets. The benchmark index fell by 10.72 points to close at 1485.23 on Tuesday in line with bearish sentiments across regional markets on talks China would raise interest rates.

On Wednesday, the FBM KLCI managed to recover from a low of 1,477.57 in morning trade to close up 0.19 point at 1485.42 in the slowest trade for the week of 886.2 million shares. The FBM KLCI staged a strong breakout rally on Thursday with blue-chips counters leading the index up on optimism stronger US economic reports would extend the global economic recovery. At the close, the FBM KLCI was 17.8 points or 1.2% higher to 1503.22, which was also the day's high.

On Friday, profit-taking activities which emerged ahead of the weekend capped gains and the FBM KLCI lost 2.24 points to end the week at 1500.98, off the opening high of 1,508.41.

On the weekly chart, the FBM KLCI formed a piercing-line candlestick which indicates the fight back of the bull after being pushed to the intra-week low of 1474.02. The key index is now closing right below its 5-week moving average (MA) which is currently at 1502.13 but is still above its 10-week MA which is at 1494.45. A weekly close above or below these two levels might see the key index continue moving in that direction.

On the daily chart, the FBM KLCI formed a dark-cloud-cover candlestick which indicates profit-taking by the bears after two days of rebound. The key index is closing right on the crucial psychological level of 1500 but is marginally below the 30-day MA which is currently at 1501.47. A close below the crucial 1500 level would see the index falling back to its sideways range and the consolidation might prolong; whereas a close above the 1508 level will like see the key index moving higher to re-test its recent historical high.

Weekly MACD had just made a dead-cross over its weekly signal line, indicating the continued loss in medium term upward momentum and beginning of the medium term consolidation which may see the key index prolonging its current consolidation process. Daily MACD, however, has continued its upswing to move higher after crossing above the zero-line, and its histogram also turned shorter, albeit still negative, indicating a gradual pick up in the momentum.

Weekly RSI (14) has hooked up and is currently at 71.9 after falling from the recent high of 80.7, and is still in the very bullish zone. Daily RSI (14) is at 53.1 and has hooked downward; it is currently in the neutral zone.

Weekly Stochastic is at 77.3 and has continued to move lower, a cross below the 80 level indicates the continued loss in momentum and also the continuation of the medium term down cycle. However, daily Stochastic has continued to move higher and is currently at 53.8, indicating the continuation of the short term up cycle which could mean a technical rebound under the longer term down cycle. Mixed and contradicting signals from the weekly and daily indicators indicate that the FBM KLCI is likely to continue with its consolidation until clearer and coherent signals are seen.

Short term trend of the FBM KLCI has turned sideways while the medium and long term uptrend is still intact. Immediate overhead resistance zone is at 1510 to 1532 while the immediate downside support zone lies at 1480 to 1474.

For the coming week, the FBM KLCI is expected to continue with its consolidation with an upward bias, given a better-than-expected US employment picture which would support further recovery in global markets on hopes the recovery in the global economy remains intact. The outlook for the local market over the medium term is still good, underpinned by healthy economic fundamentals and ample liquidity floating around globally.

The Dow rose +19.68 points or +0.17% higher to close at 11,382.09 last Friday. This week, the FBM KLCI may trade within a range of 1446 to 1532, and for today it is likely to trade within a range of 1485 to 1519.

This week's expected range: 1446 – 1532
Today’s expected range: 1485 – 1519

Resistance: 1507, 1513, 1519
Support: 1485, 1491, 1496

FBM KLCI - back above 1500

Stocks on Bursa Malaysia ended mostly higher yesterday encouraged by gains in regional markets. The strong closed on Wall Street overnight, improving investor sentiment following strong US economic data, and hopes that the sovereign debt crisis in Europe would ease have prompted continuous buying interest in selected blue-chips which pushed the benchmark FBM KLCI to close above the crucial 1500 points psychological level. The FBM KLCI advanced 17.80 points or 1.20% to close at 1503.22 after opening 7.11 points higher at 1492.53. Advancers outpaced decliners by 516 to 245 while 296 counters were unchanged. Turnover increased to 979 million shares worth RM1.79 billion, from Wednesday’s 886 million shares valued at RM1.59 billion.

Taking cue from Dow’s strong performance overnight, the FBM KLCI opened with an up gap of 7.11 points and surged to the morning session’s high of 1500.30, after that, the key index moved sideways within 1496 to 1500 for most part of the day. A last minute buying of selected key heavyweights helped pushed the key index through the 1500 level to close at 1503.22. Chart-wise, the FBM KLCI formed a bullish Marubozu candlestick which indicates buyers were in control for the day, and is expected to continue its upward momentum to move higher. After breaking through the tough resistance at 1500, the FBM KLCI is again turning positive for the short term. Strong overhead resistance zone is expected at 1508 to 1532.

MACD has turned upward to move back into the positive zone after breaking below the zero-line the day before, and histogram also turned shorter drastically indicating a pick up in the upward momentum, albeit the MACD is still below its signal-line. RSI (14) at 54.5 has turned strongly upward from 43.4 a day ago, moving from the mildly bearish zone to the mildly bullish zone. Stochastic at 34.6 has hooked up strongly from 26 a day ago crossing above its slow stochastic line. Signals from the indicators indicate that the short term consolidation phase of the FBM KLCI is likely to be over; nevertheless, it will require one or two more days’ data to confirm.

With the strong up move of the FBM KLCI yesterday, the short term trend of the key index has turned upward. The medium to long term uptrend, however, remained intact. Immediate strong resistance is expected at 1513 level while the downside support zone lies at 1490 to 1474. Overnight, the Dow rose +100.43 points or +0.89% higher to close at 11,356.21. Today, the FBM KLCI is likely to trade within a range of 1485 to 1514.

This week's expected range: 1442 – 1526
Today’s expected range: 1485 – 1514

Resistance: 1507, 1510, 1514
Support: 1485, 1489, 1496

Stock to watch: MUHIBAH, INCKEN, KEURO, SAPCRES, PENERGY, DIALOG

FBM KLCI - short term bearish, medium term trend at test

Stocks on Bursa Malaysia closed mixed yesterday amid lack of strong leads and investors stayed on the sidelines ahead of the release of the US employment and retail sales data last night. Investor sentiment remained fragile due to concerns over interest increases in China and Europe's debt crisis. Mild buying in selected blue-chips pushed the benchmark FBM KLCI back into positive territory. The FBM KLCI gained 0.19 point or 0.01% to close at 1485.42 after opening 2.54 points lower at 1482.69. Losers led gainers by 366 to 364 while 296 counters were unchanged. Total volume fell to 886 million shares valued at RM1.591 billion from Tuesday’s 1.02 billion shares valued at RM2.06 billion.

The FBM KLCI opened 2.54 points lower at 1482.69 and fell to the intra-day low of 1477.57 in early morning trade, and rebounded to 1481.27 by noon. Buying interest surfaced in the afternoon session and pushed the key index to the intra-day high of 1487.67 before profit-taking trimmed gains to close off high at 1485.42. Chart-wise, the FBM KLCI formed a white spinning-top candlestick with long lower shadow, which indicates the bear was initially stronger in pushing the key index down, but later, the bull fights back and pushed the key index back to the positive territory. The FBM KLCI has tested the support at 1480 and rebounded off it and is now closing right above the 60-day moving average (MA) which is at 1483.73. This indicates the medium term MA is providing good support to the index.

MACD continued to slide lower and has just crossed the zero line which indicates the momentum has turned bearish and an end to the short term bull trend. RSI (14) at 43.3 is flat and continued to stay in the mildly bearish zone. Stochastic is at 26.3 and continued to slide lower, indicating weak market strength. Readings from the indicators indicates that the FBM KLCI might continue its consolidation and remained range-bound.

The short term trend of the FBM KLCI remained bearish or down as it continues to stay below the short term MAs. The medium term trend is at test now as the key index has penetrated the 60-day MA and rebounded off it. If the FBM KLCI failed to stay above the 60-day MA, then it might continue to slide lower towards the 1465 support area. The long term uptrend, however, remain intact. With the overall trading volume sliding below the 1 billion shares mark, the market is expected to remain quiet.

Overnight, the Dow rose +249.76 points or +2.27% higher to close at 11,255.78. Today, the FBM KLCI is likely to trade within a range of 1469 to 1498.

This week's expected range: 1442 – 1526
Today’s expected range: 1469 – 1498

Resistance: 1489, 1494, 1498
Support: 1469, 1473, 1479

Stock to watch: MHB, SAPCRES

FBM KLCI - lower on continued selling pressure

Stocks on Bursa Malaysia closed lower yesterday on selling pressure in selected key heavyweights, and the benchmark fell in line with bearish sentiments across regional markets on talks China would raise interest rates. The FBM KLCI fell by 10.72 points or 0.72% to close at 1485.23, after opening 1.17 points lower at 1494.78. Decliners outpaced advancers by 465 to 299 while 259 counters were unchanged. Turnover declined to 1.015 billion shares valued at RM2.055 billion from Monday’s 1.049 billion shares valued at RM1.929 billion.

The FBM KLCI opened 1.17 points lower but traded to the intra-day high of 1497.50 within the first fifteen minutes, and selling pressure surfaced which pushed the key index lower throughout the day with intermittent rebound. The key index finally succumbed to heavy selling pressure to close at the low of the day. Chart-wise, the FBM KLCI formed a bearish black candlestick which indicates the bear was in control throughout the day. Following this price action, the key index is expected to continue sliding lower today to re-test the recent support at 1474. If this level could not hold, there is a strong likelihood that the key index might slip further downward to the next support at 1465.

MACD continued to slide lower and is approaching the zero line, indicating the momentum is turning bearish, a cross below the zero line would confirmed the beginning of the medium term bearish trend. RSI (14) at 43.3 has again hooked down, which indicates the market strength is moving into the bearish zone. Stochastic has again turned downward and crossed its slow stochastic line, indicating the resumption of the downward move. Signals from the indicators are indicating a bearish short term outlook for the FBM KLCI, and hence the key index might continue its southward journey.

The short term trend of the FBM KLCI is down while its medium to long term trend is still up. However, if the medium term trend is under challenge now with the 60-day moving average support being tested soon, if the key index could not hold above the 60-day MA, there would be more downside to come. Immediate support zone for the FBM KLCI is at 1474 to 1457 while the strong overhead resistance is at 1500.
Overnight, the Dow fell -46.47 points or -0.42% lower to close at 11,006.02. Today, the FBM KLCI is likely to trade within a range of 1465 to 1509.

This week's expected range: 1442 – 1526
Today’s expected range: 1465 – 1509

Resistance: 1493, 1501, 1509
Support: 1465, 1477, 1481