Technical Commentary 02/02/10

As predicted on last Friday commentary, due to KLCI’s candlestick was out of BB20 lower band, it will rebound on today. The rebound partly also due to DJI up more than 100 points on last Friday. However KLCI was resisted by 1264.5 to 1267 and closed at 1263.76 (+4.6, +0.37%). KLCI nearest resistance level now is 1264.5 and the next resistance level is 1272. The support level is still remains as 1255. If KLCL able to break the resistance level 1272, the chances for it to move higher is still intact. However if 1255 is broken, KLCI will form a lower low. Then the outlook of KLCI will likely to become downtrend.

The market’s volume was decreased by 4.6%, traded with 928 MIL shares today. The volume is just touching the 40 days VMA. This means that the markets’ volume is still sufficient to keep the market active. However we noticed that the top 3 volume contributors are come from PN17 counters. This doesn’t sound healthy for the market. There are 359 up counters and 347 down counters.

FBMKLCI Indicators
Bollinger band expansion had soften, expanded only 7% from last Friday with the candlestick stay below BBMB, indicates KLCI30 still bearish.

RSI stay at 30.5, indicates KLCI30 is still quite bearish.

STC %K and %D hooked up at 19.25 and 11.29 respectively, indicates KLCI30 still bearish but seem to rebound soon.

The MACD line dipped below ZERO and the histogram seem to form a rounding bottom soon. This indicates KLCI 30 still bearish biased. If the histogram started to form a rounding bottom, KLCI30 will has a chance to rebound.

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