After two days of running up, shares on Bursa Malaysia were mostly in the profit taking mode yesterday, amid a lack of market driver. The FBM KLCI opened in the positive territory but went into red in the afternoon session, last minute buying of key heavyweights managed to help put the key index back in the green to close at 1272.35, gaining 1.20 point or 0.09%. Decliners outpaced losers by 338 to 275, while 286 were unchanged. Volume dropped to 643 million shares worth RM821 million.
As mentioned in yesterday’s analysis, the short term 10-days moving average will provide support to the FBM KLCI, and it did. The KLCI formed a Doji yesterday, which indicates that the key index was undecided or hesitant to move up, probably due to the lack of market driver, and profit taking was active throughout the day yesterday.
MACD was up slightly but is still below its trigger line, hence, the lack of momentum. RSI inched up slightly, and Stochastic has just crossed above its 50 mark, indicating a continuation of upward momentum.
In view of the drastic drop in market volume, the KLCI may continue to drift sideways in the next few days; perhaps some year end window dressing activities might lift the index higher, but would be limited.
Today, the FBM KLCI is expected to trade within the range of 1266 to 1278.
This week's expected range: 1230 – 1281
Today's expected range: 1266 – 1278
Resistance: 1274, 1276, 1278
Support: 1266, 1268, 1270
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