Technical Commentary 26/01/10

The market was started with technical rebound in the morning however after traded for an hour, the market started to plunge. It was started with regional market especially when Hang Seng was open at 10am. The selling was very aggressive from 10am to 3pm. Please refer the 5mins chart below for your reference. The selling was slowing down after 3pm with a small rebound and sideway but KLCI still dipped -13.77, -1.06% and closed at 1283.02. KLCI nearest resistance level is 1294, close to BBMB. The support level now is 1272 and Fibo 1267

The market’s volume was increased by 25.5% to 1.25 Bil shares. This means that the selling was heavy today. There are 152 up counters and 708 down counters. If the KLCI were to rebound in the next one to few days, it has to break above 1294 and stay above it. Otherwise a Head and shoulder pattern and lower high will be formed. The KLCI short-term will be down trend.

FBMKLCIs' Indicators
Bollinger band expanded 28% with the candlestick stay below BBMB, indicates KLCI30 is bearish.
RSI dipped below 50 at 45.66, indicates KLCI30 is bearish.
STC %K dipped below 30 threshold at 16.17, indicates KLCI30 short term is bearish biased.
MACD line hooked down and crosses the trigger line, indicates KLCI30 short term is bearish biased.

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

By switching the chart over to mid-term; the price has not broken down the BBMB yet, it just sits above it. However the RSI and the STC %K had dipped below 70 threshold, indicates mid-trend could turn bearish. The mid-term support level is 1271. If it broken down below 1271, this means the mid-term trend will turn bearish.