Stocks on Bursa Malaysia closed mixed yesterday with the benchmark index rebounded from its earlier losses to close marginally higher, lifted by late bargain hunting ending in positive territory supported by late buying interest. The local market was stable despite volatility on the external front, especially the continued uncertainty over the United States government shutdown. The FBM KLCI gained 0.68 of a point or 0.04% to close at 1,776.82 after fluctuating between 1,778.13 and 1,771.32 throughout the day. Gainers led losers by 365 to 332, with 337counters unchanged. Turnover fell to 1.513 billion shares worth RM1.487 billion from 1.622 billion shares worth RM1.232 billion on Monday.
Taking cue from the three digits dip of the Dow overnight, the FBM KLCI opened 3.17 points lower at 1,773.65 and slipped lower to hit the intra-day low of 1,771.32 within the first twenty minutes of trading. The key index rebounded from the low and moved higher gradually to hit the intra-day high of 1,778.13 before pulling back slightly on profit-taking activity. Chart-wise, the FBM KLCI formed a bullish white piercing-line candlestick pattern which indicates buying support and reversal of the initial intra-day downtrend. Hence, the FBM KLCI is likely to continue to move sideways within a range of 1,768 to 1,780.
MACD was marginally lower, while its histogram also contracted upward marginally, indicating a state of sideways consolidation. RSI (14) was marginally higher at 55.4 from 55, indicating the short term relative strength of the key index is in a mildly bullish state. Stochastic continued to rise to 38 from 33.5, indicating a continuation of the short term up cycle. Readings from the indicators showed that the FBM KLCI is in a state of consolidation and is likely to prolong until a breakout is seen on the up or downside.
The immediate short term trend of the FBM KLCI has turned sideways range-bound as the key index continued to move within a narrow range of 1,768 to 1,780. The sideways situation is likely to continue until the US solve the budget and debt ceiling gridlock which posted uncertainties to the world stock markets. Nevertheless, the long term trend of the FBM KLCI still remained up. Judging from the volume and value traded, the third liners are likely to continue to stay active as the index-linked blue-chips consolidate.
Overnight, the Dow fell 159.71 points or -1.07% to close at 14,776.53. Today, the FBM KLCI is likely to trade within a range of 1,766 to 1,785.
This week's expected range: 1741 – 1804
Today’s expected range: 1766 – 1785
Resistance: 1780, 1782, 1785
Support: 1766, 1768, 1773
Stocks to watch: CLIQ, CLIQ-WA, FABER, HIAPTEK, MQTECH, SERSOL, SERSOL-WA, TAS
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