Technical Commentary on KLCI 19/01/10

FBMKLCI broke out 1300 critical level today in the 1st time after 20 months and temporary sit above it at 1300.35 (+2.36 points, +0.2%). The market’s volumes increased slightly by 1.7% to 1.2689 Billion shares. The volume is flat but still above 40 days VMA. However it is normal to have a lower volume when the market is consolidating. Today’s market is mixed with many lower liners started profit taking in the afternoon session. There are 345 up counters and 405 down counters. The lower liners and high runners are expected to correct further by sectors or rotationally. On the other hand, buying activity still going on rotationally but getting less counters and less volume compare with last week. This show that many investors started to take caution and turn sideway.

FBMKLCIs' Indicators
Bollinger band further contracts 40% indicates KLCI30 still consolidate.
RSI retracted to 77.35, indicates KLCI30 is consolidate.
STC up slightly with %K=87.52, %D=88.06. Indicates KLCI30 are consolidating with slightly bullish biased.
MACD line still flat with rounding top, KLCI30 still consolidation.
KLCI nearest resistance level is 1302-1305. The support level is 1300 and 1295.6 (the Bollinger mid-band). The mid-term view on FBMKLCI30 still considered as bullish biased.









Stocks Watch for this week
Scomi had been corrected and consolidated for 9 days (T+9). If the market still active, very likely it will restart and breaks out the upper trend line. All indicators showing this stock are still in the consolidation phase. Now the stock price is close to the tip of the triangle, it can go either direction. Keep monitor for volume grow and Bollinger band expand. Buy only when price break up. If Scomi started to move, also take a look at the Scomi-WA.









Other stocks to consider

Lower risk for conservative investors
Harta, HLFG, Zhulian, Annjoo and IJMLand

Medium Risk investors
Kinstel, Pmetal, XDL, UMS, WZsteel and LBICap (T + 6)

High Risk investors
Bornoil, Eden, Tranmil and Comcorp

Take: Always efforce cut loss policy if your stock broke down the support