Stocks on Bursa Malaysia closed broadly higher yesterday in sync with regional peers as selected heavyweights helped the local benchmark index to maintain above the 1,800-point level. The FBMKLCI rose by 8.03 points or 0.44% to close at 1,824.17 points after moving between 1,815.88 and 1,824.2 throughout the day. Market breadth was positive as gainers thumped losers by 494 to 314, while 302 counters were unchanged. Volume rose to 2.71 billion shares worth RM2.34 billion from 1.94 billion shares worth RM1.87 billion on Monday.
The FBMKLCI opened 0.26 of a point lower at 1,815.88 and slipped to the intra-day low of 1,815.57 briefly after opening. However, the key index rebounded quickly and moved higher for the rest of the day with intermittent mild pullback. It hit an intra-day high of 1,824.20 before closing slightly off high. Chart-wise, the FBMKLCI formed a bullish white Marubozu-like candlestick which indicates the bulls or buyers were in full action yesterday. Hence, the FBMKLCI is likely to continue its bullish momentum to climb higher today. Immediate overhead resistance zone is at 1,830 to 1,838, while the immediate downside support zone is at 1,815 to 1,812.
MACD and its histogram continued to climb higher, indicating a continued increased in the bullish momentum. RSI (14) was higher at 55.3 from 52.3, indicating an improvement in the index’s short term relative to a mildly bullish level. Stochastic was higher at 83.97 from 63.47, indicating the index has turned strong for the short term, and continuation of the short term up cycle. Readings from the indicators showed that the FBMKLCI is gradually turning bullish, and the bullish momentum is likely to push the key index higher.
The short term trend of the FBMKLCI has just turned up as the benchmark index is now closing above all the short, medium and long term simple moving averages (SMA). However, the medium term trend is still sideways as the short term SMAs are still below the medium term SMAs and the medium term moving averages, i.e. the 50 and 60-day SMA are still flat. The long term trend, nonetheless, still remained up. As of yesterday, the FBMKLCI has recovered almost 50% of the recent downtrend range from 1,882.20 to 1,769.80, and a move above the midrange at 1,826 will see the FBMKLCI rallying to a higher level.
Overnight, the Dow rose 192.98 points or 1.22% to close at 15,994.77. Today, the FBM KLCI is likely to trade within a range of 1,809 to 1,833.
This week's expected range: 1754 – 1839
Today’s expected range: 1809 – 1833
Resistance: 1827, 1830, 1833
Support: 1809, 1812, 1818
Stocks to watch: ASIAPAC, IQGROUP, JCY, MFCB, PELIKAN, PERDANA, SAUDEE, SERNKOU, SONA, SONA-WA
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