Stocks on Bursa Malaysia ended almost flat yesterday after a flurry of last-minute selling erased some of earlier gains as traders took the opportunity to sell their stocks when the market was up after seven straight days of losses. The FBM KLCI inched up 0.93 point or 0.05% to 1,699.92 after fluctuating between 1,695.66 and 1,706.26 throughout the day. Losers outpaced gainers by 401 to 383 with 354 counters unchanged. Total volume rose to 1.61 billion units valued at RM1.58 billion from 1.36 billion units worth RM1.73 billion on Wednesday.
The FBM KLCI opened 2.25 points lower at 1,696.74 and slipped lower to hit the intra-day low of 1,695.66 ten minutes after opening. The key index rebounded from the low and climbed higher for a major part of the day to hit the intra-day high of 1,706.26 at mid-afternoon. However, some late hour profit taking dragged the key index lower to close off high just below the psychological support level of 1,700. Chart-wise, the FBM KLCI formed a white inverted hammer candlestick, a bottom reversal candlestick pattern, which indicates the appearing of buying support and a temporary bottom was seen at 1,695-point. Hence, the FBM KLCI is likely to further consolidate at current level with a possibility of further rebound. Immediate overhead resistance zone is at 1,706 to 1,713, while the immediate downside support zone is at 1,695 to 1,690.
MACD continued to slide lower after making a dead-cross a day earlier, and its histogram also extended southward, indicating an increased in momentum to the downside. RSI (14) hooked upward slightly to 38.3 from 37.7, indicating a mild rebound and the short term relative strength of FBM KLCI is still bearish. Stochastic slipped lower to 23 from 34.8, indicating further consolidation of the key index. Readings from the indicators showed that the FBM KLCI staged a mild technical rebound but is overall is still bearish, and is likely to further consolidate.
The overall technical picture of the FBM KLCI still remained very much the same in that the medium and long term trend is down, while the short term trend is sideways range-bound with a downward bias, and the near term trend still remained down. However, the rebound of the FBM KLCI yesterday showed that selling pressure is waning and buying support on bargain hunting was appearing at current level. Hence, the FBM KLCI is likely to stage further technical rebound today.
Overnight, the Dow fell a marginal 5.41 points or -0.03% to close at 17,745.98. Today, the FBMKLCI is likely to trade within a range of 1,684 to 1,716.
This week's expected range: 1686 – 1759
Today’s expected range: 1684 – 1716
Resistance: 1705, 1711, 1716
Support: 1684, 1690, 1694
Stocks to watch: BAHVEST, BORNOIL, BPPLAS, CYBERT, DUFU, EATECH, ECOWLD, EVERGRN, GESHEN, GPACKET, GREENYB, INIX, KAWAN, LANDMRK, MMODE, MAA, NOTION, OWG, PADINI, PESONA, REXIT, SCH, SEM, SLP, SUPERMX, WPRTS, XINQUAN, YONGTAI
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