Stocks on Bursa Malaysia finished higher yesterday on continuous buying interest in selected heavyweights. The benchmark index, which was in the red since it started trading yesterday, managed to pull back into positive territory in the last ten minutes, helped by Maybank shares which counter back losses in the index. The FBM KLCI ended 1.02 points or 0.06% higher at 1,786.67 after opening 3.73 points lower at 1,781.92, and hovered between 1,781.64 and 1,786.67 throughout the day. Market breadth was positive, with 372 gainers and 356 losers, while 304 counters were unchanged. Turnover dwindled to 1.121 billion shares worth RM1.615 billion from 1.16 billion shares valued at RM1.72 billion on Friday.
The FBM KLCI opened yesterday 3.73 points lower at 1,781.92 and rebounded to move sideways in the negative territory for most part of the day. It hit the intra-day low of 1,781.64 at late morning and closed at the highest point of the day on buying of selected heavyweights. Chart-wise, the FBM KLCI formed a small white Marubozu-like candlestick which almost engulfs the previous day's candlestick, indicating the bulls were in control in pushing up the key index. However, as the trading range was quite narrow, it also indicated a state of consolidation. Hence, the FBM KLCI is likely to move higher today if only the buying momentum on blue-chip stocks continues, otherwise, it may just continue to consolidate.
MACD and its histogram continued to rise, indicating a further improvement in the index upward momentum. RSI (14) was higher at 60.3 from 59.9, indicating the key index has turned bullish for the short term. Stochastic continue to surge higher to 98.7, indicating a strong market strength and the short term up cycle is intact. Readings from the indicators showed that the FBM KLCI is turning bullish for the short term, and the upward momentum is likely to push the index higher.
The trend of the FBM KLCI is up as the key index continue to stay above all the moving averages. However, the movement of key index looks cautious as it come close to the top resistance zone of 1,787 to 1,795, and more catalyst is required to help it to breakthrough this top resistance zone. A confirmed breakout of the top resistance zone with good volume will push the FBM KLCI to the 1,800-point level. At the mean time, the market is likely to see continued rotational play on the second and third liners.
Overnight, the Dow rose +19.96 points or +0.13% to close at a fresh record high of 15,484.26. Today, the FBM KLCI is likely to trade within a range of 1,778 to 1,792.
This week's expected range: 1745 – 1811
Today’s expected range: 1778 – 1792
Resistance: 1788, 1790, 1792
Support: 1778, 1780, 1783
Stocks to watch: CRESBLD, DIGISTA, JAKS, KPS, MAGNA, MUHIBAH, PANSAR, SUPERMX, TAS, ZECON