Late profit taking dragged the FBMKLCI Index to close at its intraday low, bucking regional uptrend. At day’s end, the benchmark index fell 1.83pts, or 0.13%, to 1,396.23. Decliners were led by PETDAG, IHH and MISC.
At 9.17am, the FBM KLCI opened at 1401.08.
RHB Retail Research, in a note today (July 14), said the FKLI underwent a bearish price action and fell below the 50-day SMA line.
It closed 5.50 pts weaker, at 1,396.50 pts. The index struggled to maintain its position above the moving average line, opening higher at 1,405 pts but eventually closing in negative territory. It hit a low of 1,394.50 pts.
The failure to sustain above the medium-term moving average line suggests sentiment remains cautious.
However, the RSI momentum indicator remains above the 50% level, indicating this is a mild pullback to retest the 50-day SMA line in the near future.
The counter-trend rebound should remain intact, as long as it stays above the support of 1,372 pts.
If the momentum gaining speed again, the index may rise towards the immediate resistance of 1,410.50 pts, then 1,440 pts.
RHB will maintain a bullish bias unless it breaches the stop-loss point.
Traders should stick with the long positions initiated at 1,389 pts, ie the close of 16 Jun. To manage the downside risks,the initial stop-loss is set at 1,372 pts.
The immediate support is still at 1,389 pts – 16 Jun’s close – followed by 1,372 pts. Towards the upside, the nearest resistance is pegged at 1,410.50 pts – 29 May’s high – followed by 1,440 pts.
Maybank Investment Bank said market breadth, however, remained positive with gainers outnumbering losers by 517 to 377. A total of 2.93b shares valued at MYR1.78b changed hands. The market will remain choppy on the last trading day of the week.
Profit taking may intensify ahead of the weekend break, and this may weigh on sentiment. Automotive stocks, however, may gain some interest on news about PM Anwar’s meeting with Elon Musk today.
Technically, Maybank IB expects the FBMKLCI Index to range between 1,380pts and 1,410pts today, with supports remaining at 1,370pts and 1,350pts.
CGSCIMB said today that the local benchmark FBMKLCI (KLCI) bucked the positive trend, sliding 1.83pts or 0.13% to end the day at 1,396.23.
Technology (+1.20%) topped as the best performing sector, followed by construction (+0.67%) and financial services (+0.31%). On the flip note, healthcare (-0.69%), REIT (-0.39%) and energy (-0.33%) were the top laggards.
Trading volume rose to 2.93bn (up from 2.82bn on Wednesday) while trading value climbed to RM1.78bn (up from RM1.73bn previously).
Market breadth stayed positive four days in a row as 517 advancers against 377 losers. The benchmark formed a black candle yesterday as the index failed to close above both the 50-day EMA and 1,400 psychological mark.
Buying interest appeared to have taper off in the afternoon session after briefly surpassing both levels. The bulls may attempt another push today to try to take out these resistances, which would translate to a short-term positive for KLCI if the action is successful.
The 1,416 level is the next resistance.
Conversely, breakdown below 1,376 would likely put the index on course for 1,355-1,360 next.
CGSCIMB’s portfolio stays in risk-off mode this week, their portfolio would revert to risk-on mode next week if the benchmark can close above 1,392 today.
