Technical Commentary 27/01/10

FBMKLCI was started with gap down in the morning. The selling was continued for 45 mins and then started with small rebounce and consolidates until 3pm. The heavy selling restart again at 3pm toward 4:45pm with volume increases. The market was volatile today. Please refer to the 5 mins chart. KLCI dipped -17.25, -1.34% and closed at 1265.77. KLCI nearest resistance level now is 1272-1274. The support level is 1255-1253.

The market’s volume was decreased by 13.4%, traded with 1.08 Bil shares. This anticipate the selling still heavy however on the other hand there are still many investors willing to buy the shares at discounted price. There are 168 up counters and 618 down counters. If KLCI were to rebound in the next one to few days, it has to break above 1272 and stay above it. Otherwise a lower high will be formed. The KLCI short-term will turn down trend.

FBMKLCIs' Indicators
Bollinger band expanded another 65% with the candlestick stay below BBMB, indicates KLCI30 is very bearish.
RSI dipped again and closed at 30, indicates KLCI30 is very bearish.
STC %K dipped below 10 and %D below 30, indicates KLCI30 short term is very bearish and near to oversold. This signal a near term technical rebounce.
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 had broken down the BBMB and the support 1272. The RSI dipped below 60 and the STC %K had touches 30, indicates mid-term trend is bearish biased. The mid-term support level now is 1250 and the resistance is 1272. Please refer to the chart below.