Technical Commentary 19/02/10

FBMKLCI continues to consolidate today for most of the trading session and closed at 1257.67 (-1.33, 0.11%). The immediate support level for FBMKLCI remains as 1255 and the next support level is BBMB at about 1250. The resistance level is at the 100 days SMA, 1261 and the next critical resistance level is 1272. The market’s volume was increased by 4.1% and traded with 623 MIL shares today, however it is still below the 40 days VMA. There are 166 up counters and 470 down counters. With the losers more than the gainers, this indicates the overall market is bearish bias.

If the chart U-turn from the recent peak 1264, the outlook for FBMKLCI will be bearish biased. The 2 critical support levels 1255 and 1250 again became our main pivot points to decide the market direction. Hopefully these 2 points can provide some support to FBMKLCI, otherwise downtrend will continue.

FBMKLCI Indicators
The Bollinger band contracted 3% with the candlestick stay above the BBMB, indicates FBMKLCI is side way – consolidation.

RSI flat at 36.19; indicates FBMKLCI still consolidates with bearish biased.

STC %K closed at 77.6 and the %D stays at 75.7, although it is in the bullish zone however the BB is contracted, the bullish trend is not valid.

The MACD line had touched the trigger line however it is still below Zero level, it is still consider as bearish biased. The histogram had formed a rounding bottom, indicates there is a chance for FBMKLCI to rebound. However if the index continues to go sideway next week, a possible rounding top is formed and it might revert to downtrend.

All the indicators above indicate FBMKLCI was consolidated with bearish biased. Please refer to the picture of FBMKLCI daily chart for your reference.

For the mid term view, FBMKLCI is still bearish biased. The RSI and STC are below 50, BB slightly open by 3%, and the candlestick still below the BBMB. The resistance level is at the BBMB 127.6 and the support level is 1224. Please refer the chart below.