FBMKLCI - lower on profit-taking
Stocks
on Bursa Malaysia closed lower yesterday dampened by selling in small
caps. The local stock market took cue from the weaker regional bourses
as renewed concerns in Europe wiped out investors risk appetite. At
close, the benchmark FBMKLCI declined 1.58 points or 0.09% to 1,766.83
after moving between 1,753.95 and 1,770.52 throughout the day. Losers
outpaced gainers by 402 to 382, while 304 were unchanged. Total volume
rose to 1.6 billion units worth RM1.6 billion from 1.3 billion units
worth RM1.3 billion on Monday.Taking cue from the mild retreat on Wall Street overnight, the FBMKLCI opened 2.61 points lower at 1,765.80 but rebounded to touch the intra-day high of 1,770.52 fifteen minutes after opening. However, selling pressure on selected blue-chips caused the key index to plunge in the next fifteen minutes to hit the intra-day low of 1,753.95, losing 14.46 points at its worst. The FBMKLCI staged a rebound from the low and climbed higher gradually for the rest of the day to recover most of the lost ground. Chart-wise, the FBMKLCI formed a white hanging-man candlestick, a top reversal candlestick pattern which indicates selling pressure has appeared and the prior uptrend is taking a pause and may make a turn. Hence, the FBMKLCI is likely to further consolidate today with a downward bias. Immediate downside support zone is at 1,753 to 1,732, while the overhead resistance zone is at 1,770 to 1,789.
MACD and its histogram continued to rise, indicating further increased in the upward momentum. However, as MACD is still below the zero-line, the uptrend may turn out to be just a technical rebound in a bear market. RSI (14) hooked downward slightly to 52.6 from 53.1, indicating a mild pullback correction of the key index. Stochastic was higher at 97.8 from 93.5, indicating strong index strength and continuation of the short term up cycle, but is short term overbought. Readings from the indicators showed that the FBMKLCI staged a mild pullback correction yesterday but the short term cycle is still up.
The short term trend of the FBMKLCI remained up but the medium and long term trend of the FBMKLCI is still down as the key index continues to stay below the medium and long term moving averages. The candlestick pattern formed yesterday showed that the year-end window-dressing activity is waning and the FBMKLCI is likely to pause for a breather and to consolidate its earlier gains. The outlook for the first quarter of 2015 is that the FBMKLCI is likely to remain choppy and is dictated by the direction of the price of crude oil; and for the second quarter the market is likely to consolidate due to the implementation of Goods and Services Tax (GST) on April 1st 2015. As Year 2014 is coming to a close today, we would like to take this opportunity to wish all our readers a Happy and Prosperous New Year.
Overnight, the Dow fell 55.16 or -0.31% to close at 17,983.07. Today, the FBMKLCI is likely to trade within a range of 1,740 to 1,787.
This week's expected range: 1693 – 1808
Today’s expected range: 1740 – 1787
Resistance: 1773, 1780, 1787
Support: 1740, 1747, 1757
Stocks to watch: AFFIN, BJTOTO, DESTINI,
DUFU, FAJAR, FBMKLCI-HB, GREENYB, HOMERIZ, IQGROUP, KTB, LONBISC,
MASTEEL, NOTION, SALCON, TGOFFS, TMCLIFE
Disclaimer: The content on this site is
provided as general information only and should not be taken as
investment advice. All site content, shall not be construed as a
recommendation to buy or sell any security or financial instrument. The
ideas expressed are solely the opinions of the author. The Stocks to
watch is not a recommendation to buy or sell the particular stock, as it
is only meant for graduates of the "Share Trading the Pro Way" course
as case study. Any action that you take as a result of information,
analysis, or commentary on this site is ultimately your responsibility.
Consult your investment adviser before making any investment decisions.
http://millionairetrendtrader.blogspot.com
