Stocks on Bursa Malaysia ended on a positive note yesterday on consistent buying support. On the regional market, the sentiments were mixed with Hong Kong's Hang Seng added 161.52 points to 22,597.97, Japan's Nikkei rose 75.43 points to 14,064.82 and Singapore's Straits Times Index increased 33.32 points to 3,039.94. The FBM KLCI gained 4.21 points or 0.25% to close at 1,720.97 after moving between 1,718.56 and 1,723.69 throughout the day. Gainers trounced losers by 462 to 212, with 330 counters unchanged. Turnover stood at 1.59 billion shares worth RM1.66 billion against Wednesday's 1.47 billion shares worth RM1.81 billion.
Taking cue from the positive close of the Dow overnight, the FBM KLCI opened 2.34 points higher at 1,719.10, and moved higher gradually to touch the intra-day high of 1,723.69 at noon. But the key index couldn't sustained the rise and slipped lower from the high in the afternoon session to close off high. Chart-wise, the FBM KLCI formed a small white inverted hammer-like candlestick in Harami position which indicates consolidation with an upward bias. Hence, the FBM KLCI is likely to further consolidate today until a breakout is seen. Immediate overhead resistance zone is at 1,725 to 1,732, while the immediate downside support zone is at 1,718 to 1,702.
MACD and its histogram continued to move higher, indicating a further reduction in the bearish momentum. RSI (14) hooked upward to 40.7 from 38.8, reflecting a mild rebound and the short term relative strength is back to the mildly bearish zone. Stochastic hooked upward to 45.7 from 43.4, indicating a small improvement in the market strength and continuation of the short term up cycle. Readings from the indicators showed a state of consolidation of the FBM KLCI.
The immediate short term trend of the FBM KLCI has turned sideways range-bound, while the short and medium term trend is still down. Nevertheless, the longer term uptrend is still intact at the moment. As the week is approaching the weekend, and the US non-farm payroll data for August is due to be released tonight, the market is likely to stay quiet ahead of this important job market data. Nevertheless, the third liners are likely to continue to be active on rotational play.
Overnight, the Dow rose +6.61 points or +0.04% to close at 14,937.48. Today, the FBM KLCI is likely to trade within a range of 1,713 to 1,729.
This week's expected range: 1634 – 1778
Today’s expected range: 1713 – 1729
Resistance: 1723, 1726, 1729
Support: 1713, 1715, 1718
Stock to watch: DAYA, DESTINI, HIBISCS-WA, JCY, PESONA, RUBEREX, SONA-WA