Stocks on Bursa Malaysia ended higher yesterday led by strong gains in GENTING and MAYBANK. The FBM KLCI closed at a fresh 30-month high of 1370.58 with a gain of 10.43 points or 0.77% after opening 0.29 point lower at 1359.86. The 1370 level was last seen in February 2008. Gainers led losers by 404 to 320 while 261 counters were unchanged. However, volume was lower at 973 million shares worth RM1.362 billion compared with last Friday's 996 million shares worth RM1.360 billion.
The FBM KLCI opened 0.29 point lower and touched the intra-day low of 1358.95 before it breakout from the short profit-taking consolidation to move higher and closed at the highest point of the day at 1370.58. This formed a bullish long white candlestick which indicates the bull was in total control for a major part of the day. With this bullish move, the key index is expected to move higher to challenge the next level of resistance at 1383.
MACD has turned upward as shown by its shorter histogram, indicating a change in momentum direction from down to up. RSI(14) at 68.5 continued to move higher and is turning more bullish. Stochastic at 63.4 has hooked up and crossed above its slow stochastic line indicating a change in the short term cycle direction from down to up. Signals from the indicators are pointing towards a bullish outlook, and the FBM KLCI is expected to move higher.
With the strong close yesterday, the short term correction of the FBM KLCI is considered over, as the key index is again staying above all its short, medium and long term moving averages. The overhead resistance zone is now at 1375 to 1383, while the downside support zone is at 1350 to 1360.
Overnight, the Dow fell -1.14 points or -0.01% lower to close at 10,302.01. Today, the FBM KLCI is likely to trade within a range of 1355 to 1383.
This week's expected range: 1327 – 1395
Today’s expected range: 1355 – 1383
Resistance: 1375, 1378, 1383
Support: 1355, 1360, 1365
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