Bursa Malaysia closed off its record intraday high of 1,718.44 on Tuesday, the last trading day of April, boosted by late buying by foreign funds in index-linked heavyweights and blue-chips. The FBM KLCI closed the day at a new all-time high of 1,717.65 points, up 9.68 points or 0.57% from Monday’s close of 1,707.97, after hovering between 1,702.83 and 1,718.44 in thin trading. Its previous all-time high and intraday high were registered on April 26 at 1,711.29 points and 1,718.08 points, respectively. Losers trounced gainers by 443 to 254, with 305 counters unchanged. Total volume rose to 811.698 million shares worth RM2.265 billion from Monday's 682.128 million shares valued at RM1.402 billion. Bursa Malaysia was closed yesterday for the Labour Day holiday.
The FBM KLCI opened 2.61 points higher at 1,710.58 but slipped to the intra-day low of 1,702.83 within the first ten minutes of trading. The key index rebounded quickly to the opening level and moved sideways for most part of the day. Some strong buying interest on blue-chips emerged at the last hour of trading which helped to push the FBM KLCI to close at another fresh record high. Chart-wise, the FBM KLCI formed a white hangman-like candlestick pattern, a possible top reversal pattern, which indicates the market was initially dominated by selling but later the bulls emerged to push up the index. Hence, if the buying momentum continues today, the FBM KLCI is likely to chart new high, otherwise, it may just consolidate.
MACD hooked upward slightly, and its histogram also contracted upward, indicating a mild pickup in the upward momentum. RSI (14) was higher at 69.6 from 64.8 previously, reflecting the rebound and the key index is still in the bullish zone. Stochastic hooked upward to 80.8 from 71.1, and has crossed above the slow stochastic line, indicating a resumption of the short term up cycle. Readings from the indicators showed that the FBM KLCI is regaining its upward momentum, and may move higher.
The trend of the FBM KLCI is up as the key index is staying above all the moving averages and at a historical high level. Comparing the FBM KLCI to the Dow Jones Industrial Average (DJIA), it can be seen that the FBM KLCI is following the trend of the DJIA closely, which is also at its record high level. However, from the intra-day movement of the index, it shows the strong hand is trying to maintain the FBM KLCI at current high level, so to give the market confidence ahead of the GE13.
Overnight, the DJIA fell 138.85 points or -0.94% to close at 14,700.95. Today, the FBM KLCI is likely to trade within a range of 1,691 to 1,734.
This week's expected range: 1682 – 1736
Today’s expected range: 1691 – 1734
Resistance: 1723, 1728, 1734
Support: 1691, 1697, 1707