Stocks on Bursa Malaysia ended lower yesterday, prompted by selling pressure in selected heavyweights and penny stocks. The bearish performance of the local market was also in tandem with its regional peers following a slowdown in manufacturing activities in China for the first time in six months. The FBMKLCI finished 5.79 points or 0.32% lower at 1,808.31 after hovering between 1,806.73 and 1,816.06 throughout the day. Market breadth was negative with losers outnumbered gainers by 544 to 228, while 316 counters were unchanged. Volume fell to 1.520 billion shares worth RM2.023 billion from 1.839 billion shares valued at RM2.135 billion on Wednesday.
The FBMKLCI opened 1.17 points higher at 1,815.27 and surged to the intra-day high of 1,816.06 within the first minute after opening, and it slipped lower for the rest of the day on heavy selling pressure with intermittent weak rebound. The key index hit an intra-day low of 1,806.73 before rebound slightly to close off low. Chart-wise, the FBMKLCI formed a bearish black candlestick which indicates heavy selling pressure for the day, and hence, the FBMKLCI is likely to slide lower today on continued selling pressure. Immediate downside support zone is at 1,801 to 1,791, while the immediate overhead resistance is at 1,816.
MACD continued to slide lower, while its histogram contracted upward, indicating a state of consolidation. RSI (14) was lower at 39.5 from 42.1, indicating the key index has further weakened, and is in a bearish state. Stochastic was slightly higher at 14.8 from 13.6 and showed sign of tapering, indicating a state of consolidation. Readings from the indicators showed that the FBMKLCI is currently in a state of consolidation with a bearish bias.
The short and medium term trend of the FBMKLCI remained down as the index continued to stay below the short and medium term moving averages. Nevertheless, the long term trend is still up. Immediate downside support zone is at 1,800 to 1,794 provided by the 100 and 120-day SMA, and a breach of these critical medium term support will likely see the FBMKLCI sliding lower to the 200-day SMA long term support currently at 1,799.
Overnight, the Dow fell 175.99 points or -1.07% to close at 16,197.35. Today, the FBM KLCI is likely to trade within a range of 1,795 to 1,825.
This week's expected range: 1777 – 1863
Today’s expected range: 1795 – 1825
Resistance: 1814, 1819, 1825
Support: 1795, 1801, 1804
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