Monday 25 August 2014
Saturday 23 August 2014
RE: FBMKLCI
Blue-chips stock on Bursa Malaysia closed on easier note yesterday on profit-taking, while the small capitalised and penny stocks rebounded after a sell down on Wednesday. The market was bogged down by losses in index-linked counters, especially in plantation stocks, as well as a disappointing Chinese manufacturing survey result. The benchmark FBMKLCI fell by 4.08 points, or 0.22%, to end at 1,874.81 after fluctuating between 1,871.36 and 1,878.42 points throughout the day. Gainers led losers by 457 to 393 while 316 counters were unchanged. Total volume dipped to 2.99 billion units worth RM2.44 billion from 7.669 billion units worth RM3.304 billion on Wednesday.
The FBMKLCI opened 3.32 points lower at 1,875.57 and rebounded to hit the intra-day high of 1,878.42 ten minutes after opening. However, the rebound saw no follow through, and the key index fell on profit-taking activity to hit the intra-day low of 1,871.36 at mid-afternoon before rebounding in the last hour to close off low. Chart-wise, the FBMKLCI formed a bearish black spinning-top candlestick which indicates uncertainty of market direction with a mild bearish bias. Hence, the FBMKLCI is likely to further consolidate today or to stay range-bound. Immediate overhead resistance zone is at 1,878 to 1,886, while the downside support zone is at 1,871 to 1,865.
MACD and its histogram continued to rise, indicating continued increased in the upward momentum. However, as MACD is still below the zero-line, current uptrend may still be viewed as a technical rebound in a bigger downtrend. RSI (14) hooked downward to 53.5 from 56.3, indicating a pullback correction and the short term relative strength of the key index retreat to the weaker mildly bullish zone. Stochastic was higher at 89.1 from 74.5, indicating a continuation of the short term up cycle, but has entered the overbought zone. Hence, a pullback correction is anticipated. Mixed readings from the indicators showed that the FBMKLCI is likely to stay in consolidation.
The short term trend of the FBMKLCI remained up as the key index continues to stay above the short term 5, 10 and 20-days simple moving averages (SMA). The pullback correction yesterday found good support from the 30-day SMA as the key index rebounded after hitting it. However, the FBMKLCI may find some resistance from the medium term 50 and 60-day moving averages as it pulled back to close below them after breaking through them two sessions ago. Nevertheless, the long term uptrend is still intact. As the week is approaching the weekend, more profit-taking activity is anticipated ahead of the weekend.
Overnight, the Dow rose 60.36 points or 0.36% to close at 17,039.49. Today, the FBM KLCI is likely to trade within a range of 1,864 to 1,885.
This week's expected range: 1824 – 1888
Today’s expected range: 1864 – 1885
Resistance: 1878, 1881 1885
Support: 1864, 1867, 1871
Subscribe to:
Posts (Atom)