Stocks on Bursa Malaysia extended their earlier gains to close higher yesterday lifted by buying interests in banking and plantation stocks, moving in tandem with regional markets on easing Ukraine-Russia tension. The benchmark FBMKLCI gained 2.65 points or 0.15% to close at 1,829.11, after moving between 1,828.01 and 1,831.62 throughout the day. Gainers thumped losers by 466 to 323, with 332 counters unchanged. Volume rose to 2.4 billion shares worth RM2.15 billion from 2.19 billion shares worth RM2.17 billion on Tuesday.
Boosted by the 227 points gain of the Dow overnight, the FBMKLCI opened 3.99 points higher at 1,830.45 and slipped lower on profit-taking to hit the intra-day low of 1,828.10 at mid-morning, and the key index moved sideways range-bound for the rest of the day. It hit an intra-day high of 1,831.62 just before closing. Chart-wise, the FBMKLCI formed a black spinning-top candlestick which indicates uncertainty of market direction with a bearish bias, and hence, the FBMKLCI is likely to continue to consolidate today within its immediate sideways range of 1,813 to 1,836.
MACD and its histogram continued to slide lower, indicating a further loss in momentum and the key index is in a state of short term consolidation. RSI (14) was higher at 53.8 from 52.4, indicating a mild rebound and the key index is still in a neutral state with mild bullish bias. Stochastic was lower at 58.3 from 67.9, indicating a further weakening of the index in the short term and continuation of the short term down cycle. In short, readings from the indicators showed that the FBMKLCI is in a state of extended consolidation.
The technical picture of the FBMKLCI remained unchanged with the short and medium term trend in a sideways range-bound mode, while the long term trend remained up. Hence, the FBMKLCI is likely to extend its sideways consolidation until a breakout of the immediate sideways range of 1,813 to 1,838 is seen. At the meantime, rotational play on the small-cap and penny stocks is likely to dominate the active scene as the heavyweight blue-chips consolidate.
Overnight, the Dow fell 35.70 points or -0.22% to close at 16,360.18. Today, the FBM KLCI is likely to trade within a range of 1,823 to 1,835.
This week's expected range: 1813 – 1850
Today’s expected range: 1823 – 1835
Resistance: 1831, 1833, 1835
Support: 1823, 1825, 1827
Stocks to watch: CAREPLS, CEPAT, ETITECH, KPSCB, KFM, MENANG, ORNA, PADINI, PICORP, SCOMI, SMRT, TDM
Disclaimer: The content on this site is provided as general information only and should not be taken as investment advice. All site content, shall not be construed as a recommendation to buy or sell any security or financial instrument. The ideas expressed are solely the opinions of the author. The Stocks to watch is not a recommendation to buy or sell the particular stock, as it is only meant for graduates of the "Share Trading the Pro Way" course as case study. Any action that you take as a result of information, analysis, or commentary on this site is ultimately your responsibility. Consult your investment adviser before making any investment decisions.