Stocks on Bursa Malaysia closed higher yesterday as the market moved into positive territory in the late afternoon session in tandem with advances in regional markets. Market sentiment was boosted by expectations of stimulus measures by central banks globally to boost economic growth. The benchmark FBM KLCI advanced 6.58 points or 0.40% to a new-all-time-high of 1,652.90. Advancers outnumbered decliners by 362 to 349 while 325 counters were unchanged. Turnover increased to 1.015 billion shares worth RM1.255 billion from 982.567 million shares worth RM1.226 billion on Monday.
The FBM KLCI opened 0.23 of a point higher at 1,646.55 but slipped to the intra-day low of 1,644.68 within the first ten minutes of trading. However, it rebounded quickly to the positive zone and moved in a sideways range for the rest of the morning session. The key index started to move higher in the afternoon session with a gain in momentum in the last hour to close at a new-all-time-high level. Chart-wise, the FBM KLCI formed a bullish white candlestick which shows the bulls were in control for the day, and the buying momentum is likely to send the key index to a higher level today into the uncharted territory with targets level at 1,655, 1,660 and 1,665.
MACD continued to climb higher and has made a golden-cross over the signal line, flashing out a short term buy signal for the FBM KLCI. RSI (14) was higher at 69.3, indicating a continued improvement in the short term relative strength, and is approaching the very bullish zone. Stochastic was higher at 95.2 but showed sign of tapering, indicating very bullish strength in the key index, but is short term overbought. Readings from the indicators showed that the FBM KLCI is in a very bullish state, and the bullish momentum is likely to carry the key index to a higher level.
The FBM KLCI is currently in a bullish uptrend as it is staying above all the moving averages. Immediate overhead resistance zone is at 1,655 to 1,658-point levels, the 127.2% and the 138.2% Fibonacci expansion levels, while the downside support zone is at 1,644 to 1,639. Total volume has increased slightly, and a higher volume is required to sustain the uptrend.
Overnight, the Dow rose +2.71 points or +0.02% to close at 13,172.14. Today, the FBM KLCI is likely to trade within a range of 1,639 to 1,661.
This week's expected range: 1621 – 1660
Today’s expected range: 1639 – 1661
Resistance: 1655, 1658, 1661
Support: 1639, 1641, 1647
Stocks to watch: HIBISCS, HIBISCS-WA, LATEXX, GTRONIC, MBL, MPHB