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The FBMKLCI closed 7.75 points or 0.50 % higher at 1,548.69 points. Market action was relatively less volatile as compared to its three-day average. The FBMKLCI opened at 1,545.09 points and traded 6.75 points between 1,543.21 and 1,549.96 points. Market sentiment was bullish for FBMKLCI as it closes higher than the open and nearer to the high of the day. Trading activity was relatively firm as compared for the past one week.

Today’s higher close is an extension of last week’s bullish move, FBMKLCI rose 0.50% since last week. Based on the moving average indicators, the short term trend (using a 30-day moving average) is in an up trend . The mid-term trend, based on a 60-day moving average indicates that the current trend is up. The increase in both short and mid-term averages indicate that the price is in a good mid-term up trend. The 100-day moving average, which is used to identify the long term , is indicating an up trend. The long term trend is strong upwards as both the short and term trends are in convergence.

Generally, the market is dominated by the bulls, based on the 14-period Relative Strength Index (RSI) indicator. However, the Average Directional Index (ADX) indicator does not show any bulls or bears dominance. The Bollinger Bands indicator, which indicates price volatility indicates that trend is in a correction in the short term. Using the Average True Range indicator, increasing daily volatility as compared to the previous week’s volatility indicates increasing momentum in the short term.

The price is currently at the short term average where the Stochastic indicator is at neutral. The increase in Stochastic indicator shows that the index is being supported and may increase further. Short term chart patterns shows that there is no sign of any reversal today. Expect the index to test the 1,560 points immediate resistance level.