FBMKLCI - rebounded to close higher
Stocks
on Bursa Malaysia closed mixed yesterday with the benchmark FBMKLCI
rebounded at close after a weak start in the morning lifted by positive
external sentiment, as the local stock exchange tracked the firmer
regional stock markets following fresh gains on Wall Street. At close,
the index rose 3.97 points or 0.23% to 1,768.41 after hovering between
1,753.97 and 1,770.06 throughout the day. Losers outpaced gainers by 376
to 343, while 286 were unchanged. Total volume jumped to 1.3 billion
shares worth RM1.3 billion from Friday’s 846.49 million shares worth
RM870.12 million.The FBMKLCI opened 6.79 points lower at 1,757.65 and slipped lower to hit the intra-day low of 1,753.97 fifteen minutes after opening, losing 10.47 points at its worst. The key index rebounded from the low and climbed higher gradually to hit the intra-day high of 1,770.06 just before closing, and closed off high on last minutes profit-taking. Chart-wise, the FBMKLCI formed a bullish white candlestick which indicates the bulls are dominant for the day, and it continues the uptrend. Hence, the FBMKLCI is likely to continue to climb higher today on continued window-dressing activities. Immediate overhead resistance zone is at 1,770 to 1,789, while the downside support zone is at 1,753 to 1,732.
MACD and its histogram continued to climb higher, indicating further increased in the upward momentum. RSI (14) was higher at 53.1 from 52.1, indicating the short term relative strength of the key index is getting more bullish in the mildly bullish zone. Stochastic was higher at 93.5 from 87.1, indicating further strengthening of the key index and continuation of the up cycle and is entering the short term overbought zone. Readings from the indicators showed that the FBMKLCI is getting more bullish but is overbought on the stochastic, and a pullback correction can be expected ahead.
The short term trend of the FBMKLCI is up as the key index is closing above the short term 5, 10, 15, 20-day simple moving averages (SMA), and it also closed above the 30-day SMA yesterday. However, the medium and long term trend is still down as the key index continues to stay below the medium and long term moving averages. In order to reverse the downtrend, the FBMKLCI will have to break through the overhead resistance zone posted by the cluster of medium to long term moving averages with the highest resistance at 1,843 posted by the 200-day SMA. The FBMKLCI is likely to climb higher ahead of the year-end closing tomorrow supported by window-dressing activities.
Overnight, the Dow fell 15.48 or -0.09% to close at 18,038.23. Today, the FBMKLCI is likely to trade within a range of 1,742 to 1,786.
This week's expected range: 1693 – 1808
Today’s expected range: 1742 – 1786
Resistance: 1774, 1780, 1786
Support: 1742, 1748, 1758
Stocks to watch: ABRIC, BRIGHT, DUTALND,
EVERGRN, SENDAI, IBHD, JCY, K1, KPS, MAYBULK, MEGB, MMSV, MUIIND,
NIHSIN, OCK, PMCORP, PUNCAK, SAUDEE, SEM, SOLID
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