Technical Commentary 15/01/10

FBMKLCI closed at 1298.58 (+3.87 points, +0.3%) today. The market volume was increased by 4.4% to 1.677 Billion shares. The composite 30 components started to climb up. It tested the major resistance level 1300 at 1300.89 but fail to sustain above it. FBMKLCI 30 components still considered as consolidation with bullish biased. However, more than half of the 2nd and 3rd liners are started to correct. The market's volume still contributed by 2nd and 3rd liners. As we mentioned rubber glove industry was overheated yesterday, this morning this group of stocks were started to sell off and getting a heavier loss in the afternoon. They contributed in the top 10 ten losers.

There are 326 up counters and 467 down counters. The RSI up slightly at 81.84, the STC %K and %D increased slightly, closed at 91.93 and 81.43 respectively. The MACD line lift up slightly with histogram line formed a rounding top. The Bollinger band further reduces to 11% indicates that the CI 30 components still not totally get out from the consolidation phase soon. KLCI nearest resistance level is remain at 1300. The support level is standing at 1291 (the Bollinger mid-band). Nevertheless FBMKCI still bullish biased in the mid-term.

The technology stocks continue to push higher in the morning but mild profit taking in the afternoon. The rubber and steel stocks were under heavy correction today.