Stocks on Bursa Malaysia closed mixed yesterday with the market's barometer ended higher in the eleventh hour-buying in key heavyweights, in otherwise an easier market amid profit-taking after the recent sharp gains. The benchmark FBM KLCI gained 1.48 points or 0.097% to post a second consecutive historic high of 1528.01 but it was still off its intra-day high of 1531.99. Advancers almost matched decliners by 441 to 420 while 268 counters were unchanged. Total turnover soared to 1.741 billion shares worth RM2.274 billion from Tuesday’s 1.643 billion shares worth RM2.136 billion.
The FBM KLCI opened 0.45 of a point higher at 1526.98 and surged to the intra-day high of 1531.99 within the first ten minutes of the morning session, heavy profit-taking activities immediately surfaced and persisted throughout the day which sent the key index to its intra-day low of 1523.92, losing 2.61 points at its worst, before a last minute buying support of key heavyweights which lifted the key index off-low to close at 1528.01, charting another historical high for the FBM KLCI.
Chart-wise, the FBM KLCI formed a spinning-top candlestick which indicates indecision of the market to move higher at this juncture, as indicated by the heavy intra-day selling pressure. However, the bull still has an upper hand, as the key index continue to close higher. With the appearance of the spinning-top candlestick at this high level, the market may take a breather here to consolidate its gains.
MACD continued to move higher, indicating a continuation in the upward momentum. RSI (14) at 79.3 continued to move higher, but is tapering off; nonetheless, the key index is still very bullish although overbought. Stochastic at 94.9 indicates very strong market strength, but has hooked downward; nevertheless, it is still above its slow stochastic line.
The underlying trend of the FBM KLCI remained bullish as it continued to stay above all its moving averages, and readings from the indicators are also indicating a very bullish state of the key index. The upward momentum is expected to remain strong for the short term despite the first weakness sign from the candlestick. Immediate overhead resistance is at 1532 while the downside support zone is at 1516 to 1500.
The overall market is expected to remain buoyant with rotational play on lower liners remained the main theme of the market. Overnight, the Dow rose +10.29 points or +0.09% higher to close at 11,357.04. Today, the FBM KLCI is likely to trade within a range of 1515 to 1540.
This week's expected range: 1492 – 1540
Today’s expected range: 1515 – 1540
Resistance: 1532, 1536, 1540
Support: 1516, 1520, 1524
Stocks to watch: MALTON, MUHIBAH, TASCO, MRCB, BJASSET, VS
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