Stocks on Bursa Malaysia closed lower on Monday in line with regional markets amid renewed concerns over economic growth. Market players opted to reduce risk in view of a possible Euro zone debt restructuring which also weighed down on the Ringgit.
The FBM KLCI finished 4.47 points or 0.29% lower at 1,536.27, after opening 1.10 points better at 1,541.84. Decliners outpaced advancers by 502 to 274 while 286 counters were unchanged. Volume was thin with turnover declined to 811.79 million shares, worth RM1.23 billion, from 1.18 billion shares, valued at RM1.71 billion, on last Friday. Bursa Malaysia was closed yesterday for Wesak Day holiday.
The FBM KLCI opened 1.10 points higher at 1,541.84 and climbed to the intra-day high of 1,545.34 in the first hour before profit-taking activities pressed it to close at the day’s low of 1,536.27. Chart-wise, the FBM KLCI formed a dark-cloud-cover candlestick which indicates selling by the bears. As the key index is still closing above the short term moving averages, the price action could mean just a profit-taking pullback after a strong up move on the previous day. The short term uptrend, nonetheless, is still intact.
MACD continued to move higher indicating a continuation in the upward momentum. RSI (14) is lower at 54.7, reflecting the pullback of the key index. Stochastic has hooked down slightly, but is still above its slow stochastic line, reflecting the pullback. Readings from the indicators showed that the FBM KLCI is undergoing a mild pullback correction. Nevertheless, the key index is still mildly bullish.
The short term trend of the FBM KLCI is currently up, while the medium term trend is sideways, and the long term uptrend still remained intact. Immediate overhead resistance zone is at 1,541 to 1,565, while the immediate downside support zone is at 1,530 to 1,521. With the dwindling volume, the FBM KLCI is likely to remain range-bound.
Overnight, the Dow fell -68.79 points or -0.55% to close at 12,479.58. Today, the FBM KLCI is likely to trade within a range of 1,524 to 1,555.
This week's expected range: 1492 – 1575
Today’s expected range: 1524 – 1555
Resistance: 1543, 1549, 1555
Support: 1524, 1530, 1533
I can't access blogger.com or gmail at all while in China, Google was being blocked totally.
Some of the magnificent scenery photos of Mount Taishan, Shandong Province, China. Hope you enjoy it. (Double click on photo to enlarge)
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