Stocks on Bursa Malaysia closed marginally higher last Friday with mild buying momentum in heavyweights and lower liners, and most regional stock markets were closed for the Good Friday holiday. The benchmark FBMKLCI closed 2.15 points or 0.12% higher at 1,852.69 after trading between 1,847.38 and 1,854.07 throughout the day. On a weekly basis, the key index was almost flat with a marginal gain of 0.03 of a point against 1,852.66 recorded the previous Friday. Gainers led losers by 455 to 362, while 331 counters were unchanged. Turnover reduced to 2.216 billion shares valued at RM1.693 billion from Thursday’s 2.52 billion shares valued at RM2.113 billion. Weekly turnover stood at 11.753 billion shares worth RM10.617 billion, compared with previous week’s 10.534 billion shares valued at RM11.026 billion.
The FBMKLCI was basically in a sideways consolidation mode last week. It opened last Monday 1.56 points lower at 1,851.10 and slipped to the intra-day low of 1,847.92 before rebounding to close 1.13 points lower at 1,851.53. Tuesday saw the key index rebounded to close 2.35 points higher at 1,853.88 after hitting an intra-day low of 1,847.36. On Wednesday, the FBMKLCI fell 8.51 points lower to 1,845.37 after opening 0.74 of a point higher at the intra-day high of 1,854.62 weighed by losses in selected heavyweights amid the lack of strong leads. Taking cue from the strong performance of Wall Street overnight, the FBMKLCI opened Thursday 2.03 points higher at the intra-day low of 1,847.40 and climbed higher to close 5.17 points better at 1,850.54, and the upward momentum continued into Friday with another 2.15 points gain.
On the weekly chart, the FBMKLCI formed a white spinning-top candlestick with a slightly longer lower shadow, indicating consolidation with buying support seen. Hence, the FBMKLCI is likely to further consolidate in the coming week but with a mild upward bias. On the daily chart, the FBMKLCI formed a bullish white candlestick which continued the rebound on Thursday to close higher after opening 1.84 points lower at 1,848.70. Hence, the FBMKLCI is likely to continue its upward momentum to move higher today. Immediate overhead resistance is at 1,854, follows by 1,860 and 1,869, while the immediate downside support zone is at 1,845 to 1,839.
Weekly MACD and its histogram continued to climb higher after making a golden-cross the previous week, indicating an increase in the weekly bullish momentum. However, daily MACD continued to slide lower, while its histogram contracted upward slightly, indicating a state of consolidation. Weekly RSI (14) hooked upward slightly to 60.83 from 60.82, indicating a state of consolidation and the weekly relative strength remained in the bullish state. Daily RSI (14) was higher at 56.3 from 54.9, indicating a mild rebound and the key index is still in a mildly bullish state. Weekly Stochastic was higher at 81.2 from 77.3, indicating further increase in the weekly strength and continuation of the weekly up cycle. However, daily Stochastic was lower at 33.8 from 39.2, indicating further weakening of the daily index strength and continuation of the daily down cycle. Readings from the weekly indicators showed that the FBMKLCI is in a bullish state. However, readings from the daily indicators showed that the key index is in a consolidation mode.
The immediate near term trend of the FBMKLCI is in sideways consolidation as the key index is trapped between the 10 and 20-day SMA. However, the index has closed above the 5-day SMA, issuing a short term upward bias signal. Hence, if the FBMKLCI is able to close above the immediate overhead resistance posted by the 10-day SMA at 1,854, the key index may rally higher to challenge the next resistance level at 1,860 follow by 1,869. Nonetheless, the medium and long term uptrend still remained intact. As the index-linked counters continues to consolidate, the small-cap and the penny stocks will continue with their rotational play as can be seen from the volume which remained above the two billion shares mark.
Last Friday, the US and European market was closed for Good Friday holiday. This week, the FBM KLCI is likely to trade within a range of 1,837 to 1,864, and today, the FBM KLCI is likely to trade within a range of 1,842 to 1,860.
This week's expected range: 1837 – 1864
Today’s expected range: 1842 – 1860
Resistance: 1855, 1858 1860
Support: 1842, 1844, 1848
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