Stocks on Bursa Malaysia closed higher yesterday on continuous follow-through buying in selected heavyweights and blue-chips, pushing the benchmark index to close at its highest level of the day, helped by gains mostly seen in Maybank, Genting Malaysia and Genting. The FBM KLCI gained 6.6 points or 0.40% to 1,642.52 after opening 0.25 of a point lower at 1,635.67 and recorded an intra-day low of 1,635.59. Losers led gainers by 379 to 332 while 348 counters closed unchanged. Total turnover dropped to 884.651 million shares worth RM1.348 billion compared to yesterday’s closing of 1.232 billion shares worth RM1.756 billion.
The FBM KLCI opened 0.25 point lower at 1,635.67 and slipped to the intra-day low of 1,635.59 within the first ten minutes of trading, but the key index rebounded quickly and move higher steadily for the rest of the day at the highest point with intermittent mild profit-taking seen. Chart-wise, the FBM KLCI formed a bullish white Marubozu candlestick which indicates buyers were in control of the day’s trading. Hence, the FBM KLCI is likely to continue moving higher today with immediate overhead expected at 1,643 to 1,648.
MACD hooked upward slightly, and its histogram was also shorter upward, indicating a reduction in the key index’s downward momentum and as MACD is still below its signal-line, the improvement indicated possibly a technical rebound. RSI (14) was marginally higher at 63.1 from 58.8, indicating the FBM KLCI has regained its bullishness. Stochastic was higher at 61.9, indicating continued improvement in the index’s strength as well as a continuation in the short term up cycle. Readings from the indicators showed that the FBM KLCI is gradually turning bullish and is likely to extend its rise.
The FBM KLCI has regained its bullish uptrend as it is now closing above all its short, medium, and long term moving averages. The benchmark index is likely to move higher to re-test the all-time historical highest close level of 1,645 and the all-time high of 1,647.94 registered on 18th and 19th July 2012 respectively, a break of this resistance zone is likely to see the key index rally to the next target level of 1,655, the 127.2% Fibonacci extension level.
Overnight, the Dow fell -10.45 points or -0.08% to close at 13,165.19. Today, the FBM KLCI is likely to trade within a range 1,630 to 1,650.
This week's expected range: 1614 – 1648
Today’s expected range: 1630 – 1650
Resistance: 1645, 1648, 1650
Support: 1630, 1633, 1637
Stocks to watch: FAVCO, OLDTOWN, HIBISCS, SBCCORP, MALTON, DUTALND