Technical Commentary 25/01/10

There was no panic selling in the market today after DJI was dipped more than 200 points last Friday. FBMKLCI was dipped as much as 7.66 points before pushing up higher at the closing at 1296.79 (-3.66 points, -0.3%). The market’s volumes further reduced by 1.2% to 996 Mil shares. However a lower volume means the correction is healthy. There are 8 CI components turn green in the afternoon to neutralize the FBMKLCI to dip more. There are 266 up counters and 441 down counters. The candlestick of KLCI form a hammer shape during the closing, this signal a possible technical rebound tomorrow. However it is still resisted by BBMB at 1299. If the CI breaks and stay above the BBMB 1299 and the resistance 1300, the CI will has a chance to grow further. If the CI fails to stay above the BBMB, the short term view of CI will be bearish biased.

As mentioned by JK on the Friday’s report, there are many counters were T+4 and T+7. Rubber stocks like Supermx, Adventa are in T+7 and T+8 respectively, they are rebounded strongly toward the closing. If the CI rebound tomorrow, we expect many other counters will rebound technically. However the US and regional market is still uncertain, any rebound is a good chance to exit and leave the market temporary.

FBMKLCIs' Indicators
Bollinger band contracted 4% indicates KLCI30 is slightly bearish biased.
RSI dipped below 70 thresholds at 67.87, indicates KLCI30 is slightly bearish biased.
STC %K dipped below 70 threshold at 47.33, indicates KLCI30 short term is bearish biased.
MACD line hooked down and crosses the trigger line, indicates KLCI30 short term is bearish biased.
KLCI nearest resistance level is at BBMB=1299 and the break down support level at 1300. The support level now is 1288.

All the indicators above are bearish biased for FBMKLCI. Please refer to the picture of FBMKLCI for your reference.