Stocks on Bursa Malaysia closed mixed yesterday with the FBM KLCI continued the previous day’s gains to close marginally higher, weighed on by profit taking and mixed overseas sentiment. The benchmark FBM KLCI finished 0.19 of a point higher at 1,803.21 points, after fluctuating between 1,796.41 points and 1,804.25 points throughout the day. Losers outpaced gainers by 433 to 344, while 326 counters were unchanged. Total turnover declined to 1.6 billion shares valued at RM2.1 billion from 2.4 billion shares valued at RM2.7 billion transacted on Wednesday.
Tracking the gain of the Dow overnight, the FBM KLCI opened 0.77 of a point higher at 1,803.79 and surged to hit the intra-day high of 1,804.25 briefly after opening but selling pressure from profit-taking activity dragged the key index lower to hit the intra-day low of 1,796.41 at mid-morning, losing 6.61 points at its worst. The FBM KLCI rebounded from the low and climbed higher gradually for the rest of the day to recover most of the lost ground. Chart-wise, the FBM KLCI formed black hammer candlestick, a bottom reversal candlestick pattern which indicates the bears were initially in control but later took over by the bulls. Hence, the FBM KLCI is likely to stage further rebound today. Immediate overhead resistance zone is at 1,810 to 1,831, while the downside support zone is at 1,796 to 1,789.
MACD climbed higher but its histogram contracted slightly downward, indicating a state of consolidation. RSI (14) was almost flat at 62.44 from 62.38, indicating consolidation with a mild upward bias and the short term relative strength is still bullish. Stochastic hooked upward slightly to 69.7 from 68.9 but is still below the slow stochastic line, indicating a technical rebound. Readings from the indicators showed that the FBM KLCI is in a state of consolidation with mild upward bias.
The technical picture of the FBM KLCI still remained unchanged in that the short term trend is up, and the medium term trend is sideways to up, while the long term trend is still down as the key index is staying above the short term simple moving averages (SMA), while the 30-day SMA has made a golden-cross over the 50-day SMA, issuing a medium term buy signal. Nonetheless, the key index is still staying below the cluster of long term moving averages. The 120-day SMA is currently at 1,806-point, and an upside break of the 120-day SMA resistance will see the FBM KLCI moving higher to test the immediate overhead resistance of 1,810 follow by 1,821 and 1,831.
Overnight, the Dow rose 211.86 points or 1.20% to close at 17,884.88. Today, the FBMKLCI is likely to trade within a range of 1,790 to 1,812.
This week's expected range: 1739 – 1841
Today’s expected range: 1790 – 1812
Resistance: 1806, 1809, 1812
Support: 1790, 1793, 1798
Stocks to watch: BORNOIL, DRBHCOM, ECM, ECOFIRS, HEVEA, IGB, INSTACO, JCY, KANGER, KBES, KRONO, L&G, MIECO, MKLAND, MUDAJYA, OSK, PENTA, PRTASCO, SCICOM, TDM
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