Stocks on Bursa Malaysia closed firmer yesterday, supported by gains mostly seen in finance stocks led by CIMB and Maybank. Regionally, most bourses were in the red, with Japan's Nikkei 225 slipping 25.84 points to 13,007.28, Hong Kong's Hang Seng eased 0.02 of a point to 21,225.88 while Singapore's Straits Times increased 47.72 points to 3,231.16. The FBM KLCI gained 1.88 points or 0.11% to 1,774.05, after hovering between 1,765.38 and 1,774.78 throughout the whole trading session. Advancers led decliners by 441 to 311, with 294 counters unchanged. Total volume was at 1.486 billion shares worth RM1.773 billion compared to Monday's closing of 2.113 billion shares worth RM1.664 billion.
The FBM KLCI opened 2.59 points lower at 1,769.58 and rebounded to the morning session high of 1,774 within the first half an hour of trading. The key index came under profit-taking selling pressure and slipped to the intra-day low of 1,765.38 within the next half an hour before rebounding to climb higher for the rest of the day. Chart-wise, the FBM KLCI formed a small white hangman-like candlestick which indicates the bulls regained control after being attacked by the bears initially, and the uptrend continues. Hence, the FBM KLCI is likely to continue to climb higher today on continued buying momentum. Immediate overhead resistance zone is at 1,777 to 1,780, being the downside gap formed on June 12, and the immediate downside support zone is at 1,765 to 1,758.
MACD has turned flat, while the histogram continued to contract upward, indicating a continued reduction in the short term bearish momentum. RSI (14) was marginally higher at 53.9 from 53.2, reflecting the mild gain on the key index, and the index is still in a mildly bullish state. Stochastic was higher at 53.4 from 32.5, indicating an improvement in the market strength and the short term cycle is up. Readings from the indicators showed that the FBM KLCI is gradually gaining strength, and is likely to continue its upward momentum to climb higher.
The immediate short term trend of the FBM KLCI has turned up as the key index is now closing above the 5 and 10-day SMA, while the short term trend still remained sideways range-bound as the index continued to stay within the range of 1,743 to 1,795. The longer term trend, nevertheless, still remained up. With volume is still in the healthy level, rotational play on second and third liners will continue to dominate the active scene.
Overnight, the Dow rose 138.38 points or +0.91% to close at 15,318.23. Today, the FBM KLCI is likely to trade within a range of 1,758 to 1,784.
This week's expected range: 1716 – 1815
Today’s expected range: 1758 – 1784
Resistance: 1777, 1780, 1784
Support: 1758, 1762, 1768
Stocks to watch: ALAM, BONIA, CUSCAPI, FAVCO, GPACKET, IJACOBS, LBS, MUHIBAH, PENERGY, PERDANA, REDTONE, SCOMIES, SHL, YEELEE