Stocks on Bursa Malaysia closed higher yesterday with the benchmark FBMKLCI advancing 7.59 points or 0.4% to record a fresh all-time high of 1,892.5, breaking the previous all-time high of 1,892.33 recorded on June 24. The benchmark index also broke the all-time intra-day high of 1,892.33 after reaching a high of 1,894.72 and a low 1,885.29 throughout the trading day. Market breadth was positive as advancers outpaced decliners by 491 to 357, with 314 counters unchanged. Total volume advanced to 1.8 billion units worth RM2.16 billion from last Friday's 1.78 billion shares worth RM1.73 billion.
The FBMKLCI opened 0.49 of a point higher at 1,885.40 and slipped to the intra-day low of 1,885.29 rights after opening. However, the key index rebounded strongly and rallied higher for the rest of the day to hit the fresh all-time intra-day high of 1,894.72 half an hour before market close, and last minute profit-taking activity trimmed gains to close at 1,892.5. Chart-wise, the FBMKLCI formed a bullish white candlestick which indicates the bulls or buyers were in control for the day in driving the index higher. Hence, the FBMKLCI is likely to move higher into the uncharted territory to challenge the psychological target of 1,900-point soon if the buying momentum continues. Immediate overhead resistance is at 1,895, follow by 1,900, while the immediate downside support is at 1,885.
MACD has turned up and cross above the signal-line, issuing a buy signal and indicated an pickup of the bullish momentum. RSI (14) hooked upward to 60.2 from 54.9, indicating an improvement in the short term relative strength to a bullish state. Stochastic was higher at 80.2 from 75.2, indicating further improvement of the index’s strength and continuation of the short term up cycle. Readings from the indicators showed that the FBMKLCI is turning bullish, and bullish momentum is likely to push the key index to a higher level.
The trend of the FBMKLCI is up and bullish as the key index is currently at the all-time high level. Hence, the FBMKLCI is likely to climb higher on bullish momentum to test the 1,900-point target soon, and a successful breakthrough will see the key index rally higher with an upside target of 1,908, follow by 1,913 and 1,928.
Overnight, the Dow fell 44.05 points or -0.26% to close at 17,024.21. Today, the FBM KLCI is likely to trade within a range of 1,877 to 1,904.
This week's expected range: 1862 – 1906
Today’s expected range: 1877 – 1904
Resistance: 1896, 1900, 1904
Support: 1877, 1881, 1886
Stocks to watch: ARANK, ASIAPAC, BHS, CHEEWAH, E&O, HOVID, JAKS, KSSC, KSL, MFLOUR, MUDAJYA, NOTION, OVERSEA, SEAL, SENDAI, SIGN, ZELAN
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.