Stocks on Bursa Malaysia closed higher on Tuesday with buying interest seen in key heavyweights and blue-chips, in line with bullish regional sentiment and year-end window dressing. The FBMKLCI finished the day at 1,835.49, up 2.63 points or 0.14% from Monday's close, after hovering between 1,833.52 and 1,840.34 throughout the day. Gainers led losers by 373 to 346, with 328 counters unchanged. Volume rose slightly to 925.20 million shares worth RM758.91 million from Monday’s 919.93 million shares worth RM919.45 million.
The FBMKLCI opened 1.01 points higher at 1,833.87 and slipped to the intra-day low of 1,833.52 within the first five minutes after opening. It rebounded and moved higher to hit the intra-day high of 1,840.34 at mid-morning but retraced on profit-taking activity to close off high. Chart-wise, the FBMKLCI formed a white inverted hammer candlestick, a bottom reversal candlestick pattern which indicates possible reversal, but the selling activity was still relatively strong as the index pulled back to close below the midrange of the day. Hence, the FBMKLCI is likely to continue to consolidate today but with an upward bias. Immediate overhead resistance zone is at 1,840 to 1,851, while the immediate downside support zone is at 1,833 to 1,829.
MACD and its histogram continued to slide lower after making a dead-cross the day before, indicating the index is still in a consolidation mode. RSI (14) hooked upward to 56.8 from 55.2, indicating a weak rebound, but the short term relative strength is still in the mildly bullish zone. Stochastic slipped lower to 48.1 from 62.8, indicating further weakening of the index for the short term and continuation of the short term down cycle. Readings from the indicators showed that the FBMKLCI is in a consolidation mode, and the consolidation is likely to continue until reversal signs are seen.
The immediate short term trend of the FBMKLCI is down as the key index is now closing below the 5, 10 and 15-day SMA, but it is still above the short term 20 and 30-day SMA. Nevertheless, the medium to longer term uptrend still remained intact. As year 2013 is coming to a close in six days, year-end window dressing activity by funds is likely to keep the FBMKLCI afloat.
On Tuesday, the Dow gained 62.94 points or +0.39% to close at another new record of 16,357.55 ahead of the Christmas holiday. Today, the FBM KLCI is likely to trade within a range of 1,825 to 1,847.
This week's expected range: 1812 – 1859
Today’s expected range: 1825 – 1847
Resistance: 1839, 1843, 1847
Support: 1825, 1829, 1832
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