Stocks on Bursa Malaysia rebounded to close mixed yesterday while a last-minute buying interest in selected blue-chip stocks helped propel the benchmark FBMKLCI to finish at an intra-day high of 1,826.46 amid external pressures. The FBMKLCI rose 1.77 points or 0.10% to end the day at 1,826.46 after hitting an intra-day low of 1,818.86. Market breadth was positive with gainers trouncing losers by 518 to 293, with 301 counters unchanged. Volume rose to 2.19 billion shares worth RM2.17 billion from 2.1 billion shares worth RM2.05 billion on Monday.
Continuing the bearish sentiment from Monday, the FBMKLCI opened 3.78 points lower at 1,820.91 and slipped to the intra-day low of 1,818.86 within the first five minutes after opening. The key index rebounded and move sideways range-bound in the negative territory for a major part of the day before a last-minute buying of selected blue-chips which propel the FBMKLCI to close at the highest point of the day. Chart-wise, the FBMKLCI formed a bullish white piercing-line candlestick, a bottom reversal candlestick pattern which indicates a fight back of the bulls after being beaten a day earlier. Hence, the FBMKLCI is likely to stage a follow through rebound to move higher today. Immediate overhead resistance zone is at 1,830 to 1,838, while the downside support zone is at 1,818 to 1,813.
MACD and its histogram continued to slide lower, but MACD is still above the signal-line, indicating a state of short term consolidation. RSI (14) hooked upward to 52.4 from 51.4, indicating a mild rebound, and the key index is still in the neutral zone with a mild bullish bias. Stochastic continued to slide lower to 67.9 from 78.8, indicating a further weakening of the index’s strength and continuation of the short term down cycle. In short, readings from the indicators showed that the FBMKLCI is still in a state of consolidation.
The short term trend of the FBMKLCI still remained sideways range-bound within a range of 1,813 to 1,836, and the medium term sideways range is 1,769 to 1,882. The long term uptrend still remained intact. For the near term, the index-linked counters are likely to continue to consolidate, and judging from the volume of more than two billion shares, rotational play on the small-cap and penny stocks is likely to continue.
Overnight, the Dow rose 227.85 points or 1.41% to close at 16,395.88. Today, the FBM KLCI is likely to trade within a range of 1,813 to 1,834.
This week's expected range: 1813 – 1850
Today’s expected range: 1813 – 1834
Resistance: 1828, 1831, 1834
Support: 1813, 1816, 1821
Stocks to watch: ADVENTA, DBHD, EURO, INARI, IRIS, KNM, MTOUCHE, MUDA, POHUAT, PRTASCO, SEG, SONA
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