Stocks on Bursa Malaysia closed mixed yesterday despite continuous buying interest in selected blue chips. The FBM KLCI pared some of its gains at close after having risen more than 10 points in early trade, as investors took profit. The FBM KLCI ended slightly higher by 1.42 points or 0.08% to 1,722.49, after moving between 1,722.14 and 1,732.25 throughout the day. Losers thumped gainers by 506 to 306, with 255 counters unchanged. Turnover stood at 1.503 billion shares worth RM1.757 billion against 1.780 billion shares worth RM2.235 billion on last Friday.
The FBM KLCI opened 1.07 points higher at the intra-day low of 1,722.14 and climbed higher gradually to touch the intra-day high of 1,732.25 at noon. The key index pulled back to move sideways but was faced with heavier selling pressure in the last hour of trading, giving back almost all its earlier gains. Chart-wise, the FBM KLCI formed a gravestone Doji candlestick which indicates consolidation or bottom forming after a downtrend, hence, the FBM KLCI may continue to consolidate and move range-bound. Immediate overhead resistance zone is at 1,732 to 1,740 while the downside support zone is at 1,720 to 1,710.
MACD continued to slide lower but its histogram was almost flat, indicating a reduction of downward momentum and entering into a state of consolidation. RSI (14) was slightly higher at 25.7 from 24.7, reflecting the mild rebound of the key index, and the index is still in a very bearish state. Stochastic hooked upward slightly to 12.2 from 11.5 but is still below the slow stochastic line, indicating consolidation. Readings from the indicators showed that the FBM KLCI is currently is a state of consolidation after the recent bearish downward move.
The trend of the FBM KLCI remained down and bearish as the key index continues to stay below most of the moving averages. Nevertheless, the much longer term trend is still up. The price action of the FBM KLCI showed that there were some buying support at current level, however, it was not strong enough to reverse the trend yet. Hence, the FBM KLCI is likely to further consolidate and move range-bound with a bearish bias until the selling pressure is being fully digested.
Overnight, the Dow fell 64.05 points or -0.43% to close at 14,946.46. Today, the FBM KLCI is likely to trade within a range of 1,708 to 1,742.
This week's expected range: 1661 – 1818
Today’s expected range: 1708 – 1742
Resistance: 1729, 1735, 1742
Support: 1708, 1715, 1719
Stocks to watch: BAHVEST, FABER, GBGAQRS, MUHIBAH, PUNCAK, SALCON, SERSOL, SUPERMX