Stocks on Bursa Malaysia ended marginally higher yesterday with the benchmark FBMKLCI closing 3.03 points or 0.16% better at 1,874.12 on some mild buying of blue-chips like CIMB, DiGi and TENAGA but the overall market was mixed in the absence of strong leads. Market breadth was negative with losers outpacing gainers by 420 to 399, while 333 counters were unchanged Total volume contracted to 2.45 billion shares worth RM2.02 billion from 2.68 billion shares worth RM1.93 billion on Monday.
Taking cue from the weaker close of Wall Street overnight, the FBMKLCI opened 2.25 points lower at 1,868.84 and slipped lower to hit the intra-day low of 1,867.98 thirty minutes after opening. The key index rebounded from the low and climbed higher gradually for the rest of the day, and it hit the intra-day high of 1,876.21 at late afternoon before some last hour profit-taking pulled it to close off high. Chart-wise, the FBMKLCI formed a bullish white candlestick which continues the uptrend from Monday. Hence, the FBMKLCI is likely to continue its upward move to climb higher today if the buying momentum on blue-chips continues. Immediate overhead resistance zone is at 1,876 to 1,879, while the immediate downside support zone is at 1,867 to 1,860.
MACD continued to climb higher and has crossed over the zero-line, issuing a bullish buy signal, indicating the FBMKLCI is turning bullish for the medium term. RSI (14) was higher at 53.9 from 51.7, indicating the key index is turning stronger in the mildly bullish zone. Stochastic was higher at 68.1 from 61.8, indicating an improvement in the index’s strength and continuation of the short term up cycle. Readings from the indicators showed that the FBMKLCI is gradually turning bullish and hence is likely to move higher.
The short term trend of the FBMKLCI has turned up as the key index is now closed above the short term moving averages, and at the same time, the key index has also made a golden-cross over the medium term 50-day simple moving average, issuing a bullish buying signal. Hence, the FBMKLCI is likely to move higher today. Nonetheless, the medium term trend is still sideways range-bound within a range of 1,837 to 1,896 with the mid-range of 1,866 being the critical pivot. The long term trend of the FBMKLCI still remained up. On the broader market, rotational play on small caps and penny stock is still alive but the momentum has reduced forewarning an impending consolidation.
Overnight, the Dow fell 97.55 points or -0.57% to close at 17,013.87. Today, the FBM KLCI is likely to trade within a range of 1,861 to 1,884.
This week's expected range: 1838 – 1891
Today’s expected range: 1861 – 1884
Resistance: 1877, 1881, 1884
Support: 1861, 1864, 1869
Stocks to watch: AIRASIA, AT, DUTALND, EPMB, FITTERS, GHLSYS, HEVEA, IRCB, KIMHIN, KTB, LCHEONG, MATRIX, MELEWAR, NOVAMSC, PWORTH, SCIB, SAUDEE, SCNWOLF
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