Stocks on Bursa Malaysia closed mixed yesterday as investors are awaiting the outcome of the US Federal Reserve’s two-day meeting, which began later yesterday. The benchmark FBMKLCI however, rebounded from losses earlier in the day to close higher, lifted by consumer-related stocks. At close, the benchmark index stood at 1,825.68 points, rising 2.53 points or 0.14%, after hovering between 1,819.37 points and 1,825.85 points throughout the day. Market breadth was negative with losers outpaced gainers by 529 to 284, while 274 counters were unchanged. Total volume fell to 1.58 billion shares valued at RM1.78 billion from Monday’s 2.29 billion shares valued at RM1.85 billion.
Taking cue from the mild profit-taking on Wall Street overnight, the FBMKLCI opened 0.02 of a point lower at 1,823.13 and slipped lower on mild profit-taking activity to hit the intra-day low of 1,819.37 at mid-morning. The key index fluctuated in a narrow range but started to climb higher in the afternoon session to hit the intra-day high of 1,825.85 just before closing slightly off high. Chart-wise, the FBMKLCI formed a bullish white candlestick which indicates the bulls again took control after losses earlier in the day. Hence, the FBMKLCI is likely to continue its uptrend to move higher today. Immediate overhead resistance zone is at 1,830 to 1,833, while the downside support zone is at 1,819 to 1,815.
MACD and its histogram continued to climb higher, indicating further improvement of the bullish momentum. RSI (14) was higher at 51.6 from 50.5, indicating the key index is turning mildly bullish from a neutral state. Stochastic was higher at 72.8 from 61.7, 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 gradually turning bullish, and is likely to move higher.
The short term trend of the FBMKLCI has turned up as the key index is closing above all the short term moving averages, and the 5-day simple moving average (SMA) has also made a bullish cross-over above the 15-day SMA. The FBMKLCI is closing jus marginally below the 30-day SMA which is currently at 1,825.95, and a cross-over will see the key index moving higher to test the immediate overhead resistance at 1,830 point posted by the 300-day SMA, which coincided with the resistance zone at the gap area of 1,830 to 1,833. A close above the 30 and 300-day SMA will see the key index turning more bullish and gradual regain of market confidence.
Overnight, the Dow rose 187.81 points or 1.12% to close at 17,005.75. Today, the FBM KLCI is likely to trade within a range of 1,814 to 1,832.
This week's expected range: 1770 – 1848
Today’s expected range: 1814 – 1832
Resistance: 1827, 1830, 1832
Support: 1814, 1817, 1821
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