Stocks on Bursa Malaysia remained firm at close yesterday, as investors increased their holdings in selected heavyweights and index-linked counters on the back of improved market sentiments, as better US job data released on Friday has somehow lifted market sentiments and boosted regional bourses including Malaysia. At close, the FBM KLCI rose 4.39 points or 0.27% to 1,639.43, after opening 0.54 of a point lower at 1,634.5, and hovered between 1,634.5 and 1,641.03 throughout the day. Gainers outnumbered losers by 402 to 328 while 328 counters closed unchanged. Total volume improved to 1.078 billion shares worth RM1.536 billion compared with Friday’s closing at 950.482 million shares worth RM1.528 billion.
The FBM KLCI opened 0.54 point lower at the intra-day low of 1,634.50 and moved higher to hit the intra-day high of 1,641.03 at late morning, and the key index pulled back on profit-taking to move sideways for the whole afternoon session. Chart-wise, the FBM KLCI formed a bullish white candlestick which breakout from last week’s consolidation range. With the firm up move yesterday, the FBM KLCI is likely to continue with its upward momentum to climb higher today.
MACD has curved up slightly while its histogram continued to turn shorter upward for the sixth consecutive bar, indicating a change in the key index’s momentum from down to up. RSI (14) continued to climb higher to 64.2 from 61 previously, indicating the short term relative strength of the FBM KLCI has turned bullish. Stochastic was higher at 55.9, and has crossed over the mid-range, indicating a continued improvement in the market strength and continuation of the up cycle. Readings from the indicators showed that the FBM KLCI is turning bullish and the upward momentum is building up, and is likely to send the key index higher.
With the FBM KLCI breaking out of the short term consolidation range yesterday, the short term trend of the FBM KLCI has turned from sideways to up. The longer term uptrend still remained intact. Immediate strong overhead resistance zone is at 1,641 to 1,647 while the immediate downside support zone is at 1,634 to 1,627. If the FBM KLCI is able to break above the all-time high level of 1,647.94, then the next likely target will be the 1,665-point level.
Overnight, the Dow rose +21.34 points or +0.16% to close at 13,117.51. Today, the FBM KLCI is likely to trade within a range 1,629 to 1,648.
This week's expected range: 1614 – 1648
Today’s expected range: 1629 – 1648
Resistance: 1643, 1645, 1648
Support: 1629, 1631, 1635
Stocks to watch: POS, MUDAJYA, SKPETRO, MBL, MMODE, DUTALND