Stocks on Bursa Malaysia ended lower yesterday in tandem with regional peers, weighed down by selling in selected heavyweights. Southeast Asian stock markets were mostly flat to weaker on profit taking. The FBM KLCI fell 8.74 points or 0.51% to 1,718.12, after moving between 1,714.22 and 1,727.30 throughout the day. Gainers led losers by 380 to 369, with 337 counters unchanged. Total volume declined to 1.45 billion units worth RM1.97 billion from Wednesday’s 1.48 billion units worth RM1.74 billion.
The FBM KLCI opened 1.58 points lower at 1,725.28 and rebounded to hit the intra-day high of 1,727.30 an hour after opening. However, the rebound was weak and the key index pulled back to move sideways range-bound in a narrow range for the rest of the morning session. The FBM KLCI encountered heavy sell down at the opening bell of the afternoon session to hit the intra-day low of 1,714.22 at mid-afternoon, losing 12.64 points at its worst, but rebounded to close off low. Chart-wise, the FBM KLCI formed a bearish black candlestick which indicates the bears were in control for the day, and hence, the key index is likely to further consolidate today. Immediate downside support zone is at 1,714 to 1,706, while the overhead resistance zone is at 1,727 to 1,734.
MACD was flat but is still above the signal-line, indicating consolidation. RSI (14) hooked downward to 26.9 from 29.9, indicating mild pullback correction. Stochastic was higher at 13.9 from 10.6, indicating a reduction in the bearish momentum. Readings from the indicators showed that the FBM KLCI is in a state of consolidation and is likely to further consolidate.
The trend of the FBM KLCI still remained down and bearish as the key index continues to chart new low. The rebound of the FBM KLCI to close at the 1,718-point support level yesterday after hitting the low of 1,714-point showed that there are buying support at the technically important support level, where 1,718-point is the 76.4% Fibonacci Retracement support level for the range measuring from the pivot low of 1,671 to the pivot high of 1,867. Nevertheless, a further break of the support level will see the FBM KLCI sliding lower towards the 1,700-point psychological support level. On the broader market, trading activity still remained sluggish.
Overnight, the Dow rose 180.10 points or 1.00% to close at 18,115.84, and NASDAQ closed at a fresh record high of 5,132.95. Today, the FBMKLCI is likely to trade within a range of 1,699 to 1,740.
This week's expected range: 1708 – 1762
Today’s expected range: 1699 – 1740
Resistance: 1725, 1732, 1740
Support: 1699, 1706, 1712
Stocks to watch: ABRIC, BTM, DESTINI, EDGENTA, EVERGRN, FBMKLCI-HB, FBMKLCI-HG, FBMKLCI-HH, FBMKLCI-HK, HUPSENG, KAREX, KAWAN, KKB, MAA, NCB, PWROOT, SAUDEE, SUPERMX, UNISEM, WINTONI, YSPSAH
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