Stocks on Bursa Malaysia rebounded in the afternoon session to close higher yesterday lifted by gains mostly in banking stocks. The FBM KLCI, which opened at 1652.32, rose 4.00 points or 0.24% to end at 1,657.96, after hovering between 1,649.99 and 1,658.68 throughout the day. Advancers led decliners by 361 to 340, with 266 counters unchanged. Total volume rose to 856.45 million shares valued at RM1.71 billion from 786.53 million shares worth RM1.67 billion on Friday.
The FBM KLCI opened 1.64 points lower at 1,652.32 and slipped lower to the intra-day low of 1,649.99 at mid morning. The key index was in a consolidation mode and stayed in the negative territory for most part of the day, and some late buying on selected blue-chips stocks helped pushed the index to close higher. Chart-wise, the FBM KLCI formed a bullish white candlestick which continues the previous rebound, and it is likely that the FBM KLCI will continue to move higher today to test the immediate overhead resistance level at 1,660, the 61.8% Fibonacci retracement level.
MACD and its histogram continued to climb higher, indicating further increased in the upward momentum. RSI (14) was higher at 64.8 from 62.6, indicating an increased in the short term relative strength in the bullish zone. Stochastic hooked upward slightly to 94.7 from 94.3, indicating a strong market strength and continuation of the short term up cycle. Readings from the indicators showed that the FBM KLCI is turning bullish gradually and extending it up cycle.
The trend of the FBM KLCI remained up as the key index continued to stay above all the moving averages, and the 5-day SMA has just crossed above the 50-day SMA, indicating the trend is likely to extend upward to test the immediate overhead resistance zone of 1,660 to 1,675. The immediate downside support zone is at 1,649 to 1,640. Volume turnover remained low as most investors choose to stay sideline before the announcement of the much anticipated general election.
Overnight, the Dow rose 50.22 points or +0.35% to close at 14,447.29. Today, the FBM KLCI is likely to trade within a range of 1,643 to 1,667.
This week's expected range: 1598 – 1690
Today’s expected range: 1643 – 1667
Resistance: 1661, 1664, 1667
Support: 1643, 1646, 1652
Stocks to watch: ALAM, BIMB, CCM, MUHIBAH, PERDANA, SCOPE, TEBRAU, UEMLAND