Stocks on Bursa Malaysia
closed slightly easier yesterday on profit taking after a record high last
Friday and coupled with a soft external markets performance. Investors were
hesitant to take any major position in the market; on jitters over external
woes following a weaker than expected jobs data in the United States. However, gains in
some blue-chip counters helped the local bourse stay above the 1,615 level. The
FBM KLCI shed 0.24 of a point to close at 1,620.31 after moving between
1,616.24 and 1,620.54. Losers led gainers by 423 to 319 while 333 counters were
unchanged. Turnover increased to 1.266 billion shares worth RM1.293 billion
from the 1.14 billion shares worth RM1.52 billion last Friday.
Taking cue from the weak performance of Wall Street last
Friday, the FBM KLCI opened 1.2 points lower at 1,619.35 and slipped to the
intra-day low of 1,616.24 within the first thirty minutes of trading on mild
selling pressure, and the key index rebounded to move sideways before some last
minutes buying lifted it to close almost unchanged. Chart-wise, the FBM KLCI
formed a white hanging-man candlestick, a top reversal candlestick pattern
which indicates the appearance of selling pressure especially when it appeared
at the high level. Hence, the FBM KLCI is likely to further consolidate before continuing
its northward move. Immediate downside support zone is at 1,616 to 1,611
MACD continued to climb higher but the histogram was
slightly shorter, indicating a small reduction in the upward momentum. RSI (14)
hooked gently downward to 68.3 from 68.5 and the short term relative strength
is still in the bullish zone. Stochastic was higher at 99.4 but is tapering
off, indicating a mild reduction in the upward strength. Readings from the indicators reflected the
mild pulled back in the key index yesterday, but the overall momentum is still
bullish.
The trend of the FBM KLCI remained bullish and up as the key
index is still above all the moving averages. After recording new highs
continuously last week, the FBM KLCI is likely to pause for a breather before
continuing its uptrend, and a pullback will offer opportunity to buy into
quality shares at lower price level. Overall volume remained thin, and
rotational play on second and third liners is likely to continue dominating the
active scene.
Overnight, the Dow fell another -36.18 points or -0.28% to
close at 12,736.29. Today, the FBM KLCI is likely to trade within a range of
1,613 to 1,625.
This week's expected range: 1585 – 1641
Today’s expected range: 1613 – 1625
Resistance: 1621, 1623, 1625
Support: 1613, 1615, 1617
This week's expected range: 1585 – 1641
Today’s expected range: 1613 – 1625
Resistance: 1621, 1623, 1625
Support: 1613, 1615, 1617
Stocks to watch: MPHB, SUPERMX, BIMB,UOADEV, CATCHA
No comments:
Post a Comment