Stocks on Bursa Malaysia closed lower on a listless trading yesterday, with the benchmark FBM KLCI closing 2.82 points, or 0.16%, lower at 1,815.86 after hovering between 1,808.65 and 1,818.35 throughout the day. Among FBM KLCI components, Felda Global Ventures (FGV) led the losers, dipping 38 Sen to RM2.56 as the global agricultural and agri-commodities giant’s pre-tax profit for the financial year (FY) ending Dec 31, 2014 dipped 47.2% from previous FY to RM826.37 million. Losers outpaced gainers by 427 to 379, with 323 counters unchanged. Total volume dwindled to 1.7 billion shares worth RM1.9 billion from 2.2 billion shares worth RM2.1 billion on Tuesday.
The FBM KLCI opened 0.46 of a point lower at 1,818.22 and rebounded to touch the intra-day high of 1,818.35 briefly after opening. However, the benchmark index fell on selling pressure in selected heavyweights for a major part of the day. It hit the intra-day low of 1,808.65 at mid-afternoon before rebounding in the last hour to close off low. Chart-wise, the FBM KLCI formed a bearish black hanging-man candlestick, a top reversal candlestick pattern which indicates selling pressure has emerged initially but the key index was lifted later, and hence, the FBM KLCI is likely to stay in consolidation with a bearish bias today. Immediate downside support zone is at 1,808 to 1,800, while the overhead resistance zone is at 1,818 to 1,831.
MACD was marginally lower to almost flat, indicating a state of consolidation. RSI (14) hooked downward to 61.7 from 63.5, indicating mild pullback on profit-taking but the short term relative strength is still in the bullish zone. Stochastic was higher at 67.5 from 62.5, indicating the short term up cycle is still intact. Readings from the indicators showed that the FBM KLCI is in a state of consolidation.
The technical picture of the FBM KLCI still remained very much unchanged in that the short and medium term trend is up, while the long term trend is turning sideways as the long term 240 and 360-day SMA are turning flat. Nonetheless, the FBM KLCI has closed above the 100 and 120-day SMA, indicating an initial change to the upside for the long term trend. Currently, the FBM KLCI is capped on top at 1,820 to 1,832 by a cluster of long term moving averages, and the key index is also support below by a cluster of the short to medium term moving averages providing buffer at 1,800 to 1,765. Thus, the FBM KLCI is likely to move sideways range-bound in the near term until a breakout is seen on either side of the range.
Overnight, the Dow rose a marginal 15.38 points or 0.08% to close at a fresh record high of 18,224.57. Today, the FBMKLCI is likely to trade within a range of 1,800 to 1,828.
This week's expected range: 1784 – 1832
Today’s expected range: 1800 – 1828
Resistance: 1819, 1823, 1828
Support: 1800, 1804, 1810
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