Stocks on Bursa Malaysia closed broadly higher yesterday bucking the trend among the mixed regional peers, prompted by positive US jobs data which has put some global growth concerns to rest, and the FBMKLCI closed firmly above the 1,800-points psychological level on continued gains on most heavyweights. The benchmark index rose by 7.55 points or 0.42% to close at 1,816.14 points, after moving between 1,812.29 and 1,819.99 throughout the day. Gainers thumped losers by 530 to 267, while 319 were unchanged. Volume rose to 1.94 billion shares worth RM1.87 billion from 1.86 billion shares worth RM2.2 billion on last Friday.
The FBMKLCI opened 4.39 points higher at 1,812.98 and pulled back briefly to hit the intra-day low of 1,812.29 rights after opening. The benchmark index rebounded strongly and rallied to touch the intra-day high of 1,819.99 within the first twenty minutes, and went into sideways consolidation for the rest of the day. Chart-wise, the FBMKLCI formed a white inverted hammer-like candlestick which closed at the mid-range of the day indicating the buying and selling was quite balance, but with an upward bias. Hence, the FBMKLCI is likely to continue its prior uptrend to move higher today. Immediate overhead resistance zone is at 1,819 to 1,822, while the downside support zone is at 1,812 to 1,800.
MACD was higher and made a bullish golden-cross over the signal-line, albeit still below the zero-line, sending out a buy signal on the FBMKLCI. RSI (14) was higher at 52.3 from 49.4, indicating the short term relative strength of the FBMKLCI has turned mildly bullish from mildly bearish a day ago. Stochastic was higher at 63.5 42.4, indicating the index is gaining strength, and continuation of the short term up cycle. Readings from the indicators showed that the FBMKLCI is gradually turning bullish, and hence, is likely to climb higher on follow through buying momentum.
The short term trend of the FBMKLCI has turned up as the index is now closing above the short term 5, 10, 15 and 20-day simple moving averages (SMA), and the 5-day SMA has also made a golden-cross over the 10-day SMA, giving out a short term bullish signal. The medium term trend is sideways as both the 50 and 60-day SMA are staying flat and post as the immediate overhead resistance zone at 1,820 to 1,823. The long term uptrend, nonetheless, still remained intact. With sentiment gradually turning bullish as indicated by the momentum indicators, the FBMKLCI is likely to continue its short term uptrend to move higher.
Overnight, the Dow rose a marginal 7.71 points or 0.05% to close at 15,801.79. Today, the FBM KLCI is likely to trade within a range of 1,804 to 1,827.
This week's expected range: 1754 – 1839
Today’s expected range: 1804 – 1827
Resistance: 1820, 1823, 1827
Support: 1804, 1808, 1812
Stocks to watch: BORNOIL, CBIP, COASTAL, DSONIC, DESTINI, EITA, HOMERIZ, KNM, N2N, SONA
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