Stocks on Bursa Malaysia ended mixed yesterday, recouping from Wednesday’s losses with strong interest noted in plantation and selected heavyweights stocks. The benchmark FBM KLCI ended at 1,831.66, up 9.11 points or 0.50%, after moving between 1,823.51 and 1,831.66 throughout the day. Losers led gainers by 452 to 366, with 324 counters unchanged. Volume fell to 2.38 billion shares worth RM2.09 billion from 2.45 billion shares worth RM2.38 billion on Wednesday.
Taking cue from the positive performance on Wall Street overnight, the FBMKLCI opened 0.96 of a point higher at the intra-day low of 1,823.51 and moved higher for the rest of the day with intermittent mild pullback. The key index ended the day at the highest point on persistent buying momentum. Chart-wise, the FBMKLCI formed a bullish white Marubozu candlestick which indicates the bulls or buyers were in control for the day in recouping the losses suffered the day before. Hence, the FBMKLCI is likely to continue its rebound if the buying momentum continues into today. Immediate overhead resistance zone is at 1,833 to 1,838, while the downside support zone is at 1,822 to 1,813.
MACD hooked upward, but its histogram continued to contract, indicating the key index is still in a consolidation mode. RSI (14) hooked upward to 56.1 from 51.5, indicating a rebound, and the short term relative strength of the key index has turned mildly bullish. Stochastic was marginally lower at 87.5 from 88, indicating the downward momentum is reducing. Mixed signals from the indicators showed that the FBMKLCI is still in a consolidation mode.
The technical picture of the FBMKLCI remained unchanged with the short and medium term trend remained in sideways range-bound, and the long term uptrend still remained intact. With the results season coming to an end today, stocks on Bursa Malaysia is likely to go into an extended consolidation while waiting for fresh catalyst. However, rotational play on the small-cap and penny stock may continue but the momentum is reducing as can be seen from the dwindling volume.
Overnight, the Dow rose 74.24 points or 0.46% to close at 16,272.65. Today, the FBM KLCI is likely to trade within a range of 1,818 to 1,840.
This week's expected range: 1808 – 1847
Today’s expected range: 1818 – 1840
Resistance: 1834, 1837, 1840
Support: 1818, 1820, 1826
Stocks to watch: AIRASIA, ANCOM, EDUDPEC, HOHUP, MPAY, MRCB, MUDA, SOLID
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