August 26 2014 List 1

August 26 2014 List 2

August 26 2014 List 3

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

 

FBMKLCI

Stocks on Bursa Malaysia closed marginally lower yesterday despite the overnight uptrend on Wall Street and other regional bourses. Major Asian bourses were traded higher, led by Japan's Nikkei, as positive sentiment emerged following an improved reading of China's manufacturing sector and the US Federal Reserve's minutes reinforced expectations the central bank will not rush to raise interest rates. However, the FBMKLCI continued its correction for the third consecutive sessions to close 1.91 points or 0.10% lower at 1,875.12, after fluctuating between 1,871.50 and 1,882.28 throughout the day. Decliners outpaced advancers by 402 to 390, with 340 counters unchanged. Volume decreased to 1.8 billion shares worth RM2.23 billion, from 1.88 billion shares worth RM1.95 billion transacted on Wednesday.

Taking cue from the strong close on Wall Street overnight, the FBMKLCI opened 1.06 points higher at 1,878.09 and surged to the intra-day high of 1,882.28 within the first fifteen minutes. However, the up thrust was truncated by profit-taking activity which sent the key index southward for the rest of the day to hit the intra-day low of 1,871.50 before a last minute rebound which lifted it to close off low. Chart-wise, the FBMKLCI formed a black spinning-top candlestick which indicates uncertainty and consolidation. Hence, the FBMKLCI is likely to continue to consolidate today. Immediate overhead resistance zone is at 1,882 to 1,889, while the downside support zone is at 1,871 to 1,867.

MACD and its histogram continued to slide lower, indicating further loss in momentum. Nonetheless, as MACD is still above the signal-line, current weakness is considered just a short term correction. RSI (14) was lower at 57.7 from 59.6, indicating mild loss in the index’s relative strength. Stochastic slipped lower to 57.9 from 79.1, indicating further weakening of the key index and continuation of the short term down cycle. Readings from the indicators showed that the FBMKLCI is undergoing a short term correction phase, and the correction and consolidation process is likely to extend until a confirmed reversal signal is seen.

The immediate near term trend of the FBMKLCI is down as the key index is now closing below the 5 and 10-day SMA. The price action of the FBMKLCI yesterday showed that the key index is finding support at 1,871-point level, and is likely to consolidate around this support level. However, a further break of the immediate support will likely see the key index sliding lower to the 30-day SMA support level currently at 1,864. Nevertheless, the short, medium and long term trend is still up, and hence, current weakness should be viewed as an opportunity to accumulate quality shares for longer term gains.

Overnight, the Dow rose 10.02 points or 0.06% to close at 16,543.08. Today, the FBM KLCI is likely to trade within a range of 1,859 to 1,893.

This week's expected range: 1852 – 1902
Today’s expected range: 1859 – 1893

Resistance: 1881, 1887 1893
Support: 1859, 1865, 1870

 

FBMKLCI

Stocks on Bursa Malaysia ended mixed on Wednesday, the last trading day of April, as cautious sentiment clouded the market ahead of the outcome of the US Federal Reserve's two-day meeting which ends later on the day, against a backdrop of continuing tension in Ukraine. However, the FBMKLCI rose 12.18 points or 0.7% to 1,871.52 on government fund buying. Losers led gainers by 419 to 362 while 325 counters were unchanged. Turnover was lower at 1.5 billion shares, worth RM2.5 billion, from Tuesday’s 2.5 billion shares worth RM2.2 billion. Bursa Malaysia was closed yesterday for the May 1st Labour Day holiday.

The FBMKLCI opened 0.02 of a point lower at 1,859.32 and slipped to the intra-day low of 1,857.07 within the first ten minutes after opening. The key index rebounded from the low and climbed higher gradually for the rest of the day with bouts of pullback on mild profit-taking, and a last minute buying on selected heavyweights help pushed the index to close at the highest point of the day. Chart-wise, the FBMKLCI formed a bullish white candlestick which confirmed the reversal signal issued by the bullish white piercing-line candlestick pattern formed on the previous day. Hence, the FBMKLCI is likely to move higher today if the buying momentum continues. Immediate overhead resistance zone is at 1,872.52 to 1,882.2, while the downside support zone is at 1,857 to 1,952.

MACD hooked upward but is still below the signal-line, indicating the rise in the key index could be just a technical rebound until a golden-cross signal is seen. RSI (14) was higher at 63.8 from 56.4, indicating the short term relative strength of the key index has again turned bullish. Stochastic hooked upward to 65.4 from 52.2, and has made a golden-cross over the slow stochastic line, indicating a bullish reversal of the short term cycle from down to up. Readings from the indicators showed that the FBMKLCI is staging a bullish reversal and the key index is likely to move higher on follow through buying momentum.

With the strong upward move on Wednesday, the trend of the FBMKLCI has again turned up as the key index is now staying above all the short, medium and long term moving averages. The FBMKLCI is now just 10.68 points below its all-time high of 1,882.2 registered on 31st December, 2013; and a breakout from this all-time high level will see the FBMKLCI moving higher to the next target of 1,900 in the short to medium term. On the broader market, the small-cap and penny stocks are likely to continue with their consolidations after the recent strong pullback which caused a bearish outlook in some of the penny stocks.

 

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