KLCI_20120105

Stocks on Bursa Malaysia ended on a firmer note yesterday with the main index staying above the psychological 1,500-point level. Gains in plantation, palm oil-related and finance counters enabled the market barometer to rebound and close in the black for the first time since trading in the new year began. The FBM KLCI ended at 1,514.43, up 10.21 points, or 0.68%, after opening 2.83 points better at 1,507.05. Gainers outnumbered losers by 467 to 325, while 324 counters were unchanged. Volume increased to 1.668 billion shares worth RM1.462 billion, from 1.658 billion shares worth RM1.528 billion previously.


The FBM KLCI opened 2.83 points higher at 1,507.05 and slid to the intra-day low of 1,504.54 on continued profit-taking activity. It then rebounded and moved higher with mild pulled back correction along the way, and it touched the intra-day high of 1,514.82 before closing the day slightly off high. Chart wise, the FBM KLCI formed a bullish Harami candlestick, a bottom reversal candlestick pattern formation, which indicates the bulls have came back to take control after two days of correction. The key index rebounded to close higher after hitting into the support zone of 1,506 to 1,500 provided by the clusters of long term moving averages, and it may continue its upward momentum to move higher today.


MACD has hooked upward slightly, but its histogram continued to turn shorter, indicating a state of consolidation. RSI (14) has hooked upward to 61.2, indicating the short term relative strength has moved back to the bullish zone. Stochastic, nonetheless, has crossed below the 80-level to 75.6, indicating a continuation of the short term down cycle and continued weakness in the key index. Mixed signals from the indicators showed that the FBM KLCI has gone into a consolidation phase. 


The FBM KLCI has again closed above the short term 5-day SMA after closing below it yesterday, reflecting the rebound and the overall trend of the FBM KLCI remained up as the key index continued to stay above all the moving averages. Immediate overhead resistance zone is at 1,515 to 1,525 while the downside support zone is at 1,505 to 1,500. Overnight, the Dow fell a marginal -2.72 points or -0.02% to close at 12,415.70. Today, the FBM KLCI is likely to trade within a range of 1,497 to 1,525.


This week's expected range: 1463 – 1571

Today’s expected range: 1497 – 1525


Resistance: 1518, 1522, 1525

Support: 1497, 1500, 1507


Stocks to watch: MAS, XDL, HANDAL, PROTON