Stocks on Bursa Malaysia ended in positive territory yesterday, lifted by gains in selected blue chips. The FBMKLCI gained 0.33 point or 0.02% to 1,798.46 after hovering between 1,792.21 and 1,799.82 throughout the day. Losers led gainers by 471 to 300, with 307 counters unchanged. Total turnover declined to 1.49 billion shares valued at RM2.03 billion from the 2.12 billion shares worth RM2.67 billion on Tuesday.
The FBMKLCI opened with a downside gap of 3.11 points lower at 1,795.02 and slipped lower to the intra-day low of 1,792.21 within the first thirty minutes after opening. The key index rebounded from the low and moved gradually higher to hit the intra-day high level of 1,799.82 before pulling back to close off high on last minute profit-taking activity. Chart-wise, the FBMKLCI formed a bullish white piercing-line candlestick, a bottom reversal candlestick pattern which indicates the fight back of the bulls after being beaten initially. Hence, the FBMKLCI may continue its reversal to move higher today. Immediate overhead resistance zone is at 1,800 to 1,806, while the immediate downside support zone is at 1,792 to 1,790.
MACD was almost flat with a marginal gain, but its histogram further contracted upward, indicating continued reduction in the bearish momentum and a state of consolidation. RSI(14) was marginally higher at 51.6 from 51.3, indicating a state of consolidation in the mildly bullish zone. Stochastic was higher at 51.6 from 47.8, indicating a slight improvement in the index’s strength, and continuation of the up cycle. Readings from the indicators showed that the FBMKLCI is in a state of consolidation but with an upward bias.
The technical picture of the FBMKLCI still remained unchanged with the short term trend in sideways consolidation, while the medium to longer term trend still remained up. The current state of the FBMKLCI is likely to continue until year-end windows dressing activity comes in. However, the third liners may continue to dominate the active scene.
Overnight, the Dow rose 24.53 points or +0.15% to close at a fresh record high of 16,097.33. Today, the FBM KLCI is likely to move within a range of 1,786 to 1,807.
This week's expected range: 1759 – 1840
Today’s expected range: 1786 – 1807
Resistance: 1801, 1804, 1807
Support: 1786, 1789, 1793
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