Stocks on Bursa Malaysia ended lower in thin trading yesterday on lack of buying interests despite mixed performances on the regional bourses, as most of the regional markets were still closed for Easter celebrations. The FBM KLCI slipped 4.02 points or 0.24% to close at 1,667.61, after opening 0.25 point higher at 1,671.88 and hit an intra-day low of 1,659.20. Advancers led decliners by 329 and 317 with 289 counters unchanged. Turnover declined to 594.161 million shares worth RM1.174 billion from last Friday's 610.18 million shares worth RM1.169 billion.
The FBM KLCI opened 0.25 of a point higher at 1,671.88 and slipped lower on profit-taking activity to the intra-day low of 1,659.20 in the first hour of trading. It then rebounded and climbed higher gradually to recover some lost ground but was trading in the negative territory all day long. Chart-wise, the FBM KLCI formed a black hammer candlestick, a weak bottom reversal candlestick pattern, which indicates buying support appearing after the initial sell down by the bears, and hence, the FBM KLCI is likely to continue its downtrend or consolidate at current level. Immediate downside support zone is at 1,659 to 1,650, while the overhead resistance zone is at 1,671 to 1,681.
MACD continued to climb higher, but its histogram contracted for the first time after five continuous sessions of expansion, indicating a reduction in the upward momentum. RSI (14) was lower at 63.1 from 66.1, reflecting weakness, but the key index is still in the bullish zone. Stochastic hooked downward to 87.4 from 92.7, reflecting the pullback in the index but is still above the slow stochastic line. Readings from the indicators showed that the FBM KLCI is currently undergoing a mild pullback correction and the overall technical picture is still bullish.
The trend of the FBM KLCI remained up as the key index is still staying above all the moving averages. However, the index did pierce through the 5-day SMA but rebounded from it, indicating there are some buying support on weakness, and the key index is likely to further consolidate around current level with 1,650 to 1,647 being an important support zone. Volume traded yesterday was very thin, indicating a lack of interest in the market as most players choose to stay sideline.
Overnight, the Dow fell 5.69 points or -0.04% to close at 14,572.85. Today, the FBM KLCI is likely to trade within a range of 1,647 to 1,684.
This week's expected range: 1607 – 1712
Today’s expected range: 1647 – 1684
Resistance: 1673, 1678, 1684
Support: 1647, 1653, 1660
Stocks to watch: BOILERM, GUOCO, KIMLUN, PADINI, PERDANA, RUBEREX, SENDAI, ZELAN, ZHULIAN