Stocks on Bursa Malaysia closed higher yesterday boosted by gains in selected finance blue chips and newly-listed MSM Holdings' encouraging performance. Finance stocks, led by RHB and CIMB, influenced the FBM KLCI's movement yesterday. The FBM KLCI rebounded to end the day 7.5 points or 0.48% higher at 1,570.02 after opening 1.48 points lower at 1,561.04. Advancers led decliners 492 to 278 while 303 counters were unchanged. Volume increased to 935.529 million shares valued at RM1.918 billion from 788.372 million shares valued at RM1.337 billion previously.
The FBM KLCI opened 1.48 points lower at 1,561.04 and moved higher throughout the day with intermittent mild profit-taking activities, it close at the highest point of the day at 1,570.02.
Chart-wise, the FBM KLCI formed a bullish engulfing Marubozu candlestick, which indicates the bulls were in full control for the day. With the bullish up move yesterday, the key index had managed to break through the resistance at 1,566 and is likely to continue with its momentum today to challenge the historical peak of 1,576.95.
MACD has turned upward and so is the histogram, indicating a pick up in momentum. RSI (14) has hooked up to 62.99, indicating the relative strength of the key index is turning bullish. Stochastic has also made a reversal up to 89.8, and has crossed above the slow stochastic line, indicating a resumption of the up cycle. Readings from the indicators showed that the FBM KLCI is turning bullish and the momentum is also picking up, hence, might continue to move higher.
The underlying uptrend of the FBM KLCI remained intact. Immediate strong overhead resistance is expected at 1,577, and the immediate downside support zone lies at 1,560 to 1,550. With volume gradually picking up, the overall market is likely to gradually pick up in its trading momentum.
Overnight, the Dow rose +145.13 points or +1.21% to close at 12,188.69. Today, the FBM KLCI is likely to trade within a range of 1,555 to 1,579
This week's expected range: 1540 – 1577Today’s expected range: 1555 – 1579
Resistance: 1573, 1576, 1579Support: 1555, 1558, 1564
Stocks to watch: CUSCAPI, KBB, SCABLE,