Stocks on Bursa Malaysia ended on a mixed note yesterday, with the benchmark FBMKLCI advancing 0.15 of a point to record a fresh all-time high of 1,892.65. The FBMKLCI's previous all-time high of 1,892.50 was recorded on Monday. It also broke an all-time intra-day high of 1,894.72 yesterday, after reaching a high of 1,896.23 and a low 1,891.66 throughout the trading day. Market breadth was negative as decliners outpaced advancers by 464 to 387, with 321 counters unchanged. Total volume declined to 1.79 billion units worth RM2.29 billion from Monday's 1.8 billion shares worth RM2.16 billion.
The FBMKLCI opened 1.39 points higher at 1,893.89 and surged to hit a fresh all-time intra-day high of 1,896.23 within the first twenty minutes after opening. However, the buying momentum could not sustain, and the key index slipped lower from the intra-day high on continued mild profit-taking. It hit an intra-day low of 1,891.66 before rebounding on last minute buying to close 0.15 of a point higher to register another fresh record high of 1,892.65. Chart-wise, the FBMKLCI formed a bearish black spinning-top candlestick with a slightly longer upper shadow, a bearish top reversal candlestick pattern which indicates uncertainty of market direction amid heavy profit-taking activity after touching a fresh all-time intra-day high. Hence, the FBMKLCI is likely to slide lower today on continued profit-taking activity to consolidate its recent gains. Immediate downside support zone is at 1,891 to 1,885, while the overhead resistance is at 1,896.
MACD and its histogram continued to rise, indicating an improvement in the bullish momentum. RSI (14) was almost flat at 60.3 from a previous reading of 60.2, indicating a pause in the short term relative strength. Stochastic was marginally higher at 80.7 from 80.2, and showed sign of tapering off, indicating a reduction in the upward momentum, buy the short term up cycle is still intact. Readings from the indicators showed that the FBMKLCI is taking a breather after the recent gains, and is likely to pause for consolidation before continuing its uptrend journey.
The technical picture of the FBMKLCI remained very much unchanged in that the trend still remained up and bullish. However, the price action yesterday showed a toppish signal, and hence, a pullback correction of the key index is anticipated. Nevertheless, the correction is expected to be shallow, and hence, may present an opportunity to buy into weakness on quality shares. On the broader market, rotational play on small cap and penny stocks is likely to continue.
Overnight, the Dow fell 117.59 points or -0.69% to close at 16,906.62. Today, the FBM KLCI is likely to trade within a range of 1,886 to 1,900.
This week's expected range: 1862 – 1906
Today’s expected range: 1886 – 1900
Resistance: 1895, 1898, 1900
Support: 1886, 1888, 1890
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