Stocks on Bursa Malaysia closed broadly higher yesterday with the benchmark FBM KLCI index being pushed higher helped by strong buying interest in Maybank, CIMB and Petronas Chemicals in the last 10 minutes of trading. The FBM KLCI gained 7.15 points or 0.43% to 1,660.67 after opening 1.9 points higher at 1,655.42. Advancers thumped decliners by 403 to 304 while 368 counters were unchanged. Turnover rose to 1.302 billion shares worth RM2.015 billion from Tuesday's 975.099 million shares valued at RM1.26 billion.
The FBM KLCI opened 1.9 points higher at 1,655.42 but slipped to the intra-day low of 1,653.55 within the first thirty minutes of trading. The key index then rebounded and climbed higher gradually but was within a small range. However, last minute buying of selected blue-chips helped pushed the benchmark index to close at the highest point of the day. Chart-wise, the FBM KLCI formed a bullish white candlestick which indicates the bulls were in control, and the key index is likely to continue its up move today. Immediate strong overhead resistance is anticipated at the all-time high level zone of 1,665 to 1,668, while the downside support zone is at 1,653 to 1,649.
MACD has hooked up and the histogram also expanded upward for the first time after seven sessions of contraction, indicating a pick up in the index's momentum. RSI (14) turned upward to 61.1 from 56.5, indicating the short term relative strength has returned to the bullish zone. Stochastic hooked upward slightly to 74.5 from 74.1, indicating a pause in the short term down cycle. Readings from the indicators showed that the momentum of the FBM KLCI has turned positive and the short term consolidation process is probably over.
The FBM KLCI has closed above the immediate short term 5 and 10-day SMA indicating the short term correction and consolidation is over, and has resumed its uptrend. With this bullish up move, the FBM KLCI is likely to climb higher to challenge the all-time high level which is just a few points away. A successful breakthrough of the all-time high level of 1,668 registered on 5th October will likely see the benchmark index moving to the next target levels of 1,675 to 1,680.
Overnight, the Dow rose a marginal 5.22 points or +0.04% to close at 13,557.00. Today, the FBM KLCI is likely to trade within a range of 1,648 to 1,668.
This week's expected range: 1633 – 1679
Today’s expected range: 1648 – 1668
Resistance: 1663, 1665, 1668
Support: 1648, 1651, 1655
Stocks to watch: AIRASIA, BENALEC, SYF, TAS, WEIDA