Stocks on Bursa Malaysia ended higher yesterday pushed by buying interest in lower liners. The benchmark FBM KLCI closed 2.62 points or 0.16% higher at 1,675.69, a fresh record close, after moving between 1,670.84 and 1,678.57, a last-minute buying lifted the market barometer which was mostly in the red during the afternoon session. Gainers led losers by 399 to 326, while 329 counters were unchanged. Volume turnover rose to 1.69 billion shares valued at RM1.64 billion from 1.59 billion shares valued at RM1.69 billion on Wednesday.
The FBM KLCI opened 2.78 points higher at 1,675.85 and climbed to the intra-day high of 1,678.58 in first half an hour of trading, and profit-taking which sets in pushed the key index lower for a major part of the day to the intra-day low of 1,670.84 before a last minute buying of selected blue-chips which lifted the index to close in the positive territory. Chart-wise, the FBM KLCI formed a Doji candlestick with a long lower shadow which indicates uncertainty amid consolidation. Nevertheless, the hidden hands managed to close the benchmark index at another record high level, and the FBM KLCI is likely to continue moving range-bound but with a downward bias.
MACD was marginally higher, but the histogram was shorter, indicating a further loss in momentum, and possible weakness is developing. RSI (14) hooked upward to 67.5 from 65.7, indicating the index is still in a bullish state. Stochastic hooked upward to 83.8 from 80.3, reflecting the mild rebound. Readings from the indicators showed that the FBM KLCI is in a consolidation mode.
The broad trend of the FBM KLCI is up. However, the immediate short term trend has turned sideways range-bound, immediate overhead resistance is at 1,679 and support at 1,669. A breakout above 1,679, the record high level, is likely to see the benchmark index moving higher to test the next target level of 1,685. Rotational play on penny stocks is likely to continue dominating the active scene as can be seen from the rising volume but a decline in per unit value.
Overnight, the Dow rose 136.16 points or +1.04% to close at 13,232.62. Today, the FBM KLCI is likely to trade within a range of 1,663 to 1,686.
This week's expected range: 1648 – 1685
Today’s expected range: 1663 – 1686
Resistance: 1679, 1683, 1686
Support: 1663, 1667, 1671
Stocks to watch : EASTLND, EMICO, GAMUDA, PARKSON, PENERGY, PETRONM, SEALINK