Stocks on Bursa Malaysia closed mixed yesterday. Nonetheless, late buying on selected blue-chips helped push the benchmark FBMKLCI to close marginally higher, marking gains for the second consecutive days. The FBMKLCI, which was traded in the negative territory most of the time, gained 1.07 points or 0.06% to 1,850.39 on a last minute push after fluctuating between 1,846.88 and 1,850.53 points. Losers outnumbered gainers by 452 to 381, with 323 counters unchanged. Total volume slipped to 3.01 billion units valued at RM2.21 billion from 3.17 billion units valued at RM2.11 on Monday.
The FBMKLCI opened 1.34 points lower at 1,847.98 and rebounded to hit the intra-day high of 1,850.45 at mid-morning. The key index pulled back from the higher and slipped lower for the rest of the day to hit the intra-day low of 1,846.88 just before closing. However, a last minute buying effort on selected blue-chips managed to push the FBMKLCI to close near the high of the day. Chart-wise, the FBMKLCI formed a small white candlestick which continued the uptrend from the previous day. Hence, the FBMKLCI is likely to climb higher today if the buying momentum continues. Immediate overhead resistance zone is at 1,855 to 1,860, while the immediate downside support zone is at 1,846 to 1,840.
MACD continued to slide lower, however, its histogram contracted upward slightly, indicating a reduction in the bearish momentum. RSI (14) was higher at 37 from 36.2, indicating a weak rebound and the short term relative strength of the FBMKLCI is still in the bearish zone. Stochastic was higher at 18.8 from 16.3, indicating a slight improvement in the index’s strength. However, as stochastic is still below the slow stochastic line, current improvement may turn out to be just a technical rebound which is short-live. Readings from the indicators showed that the bearish momentum is reducing and the FBMKLCI is in a state of consolidation.
The trend of the FBMKLCI remained down as the key index continued to stay below the short, medium and long term moving averages. However, the FBMKLCI managed to find support at the longer term 200-day SMA which saw the key index rebounding from it, while the longer term trend represented by the 200, 240 and 360-day SMA is still up. Nonetheless, a further break of the 200-day SMA may see the FBMKLCI sliding lower to the 240 and 300-day SMA support zone currently at 1,829 to 1,818. On the hand, to reverse the current downtrend, the FBMKLCI must close above the highest resistance level posted by the cluster of 30, 50 and 60-day SMA at 1,876-point level.
Overnight, the Dow fell 9.44 points or -0.06% to close at 16,560.54. Today, the FBM KLCI is likely to trade within a range of 1,844 to 1,854.
This week's expected range: 1786 – 1916
Today’s expected range: 1844 – 1854
Resistance: 1851, 1853, 1854
Support: 1844, 1845, 1848
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