Technical Commentary 03/02/10

FBMKLCI continues to rebound for 2nd day and closed at 1267.15 (+3.39, +0.27%). KLCI nearest resistance level now is 1272 and the next resistance level is 1280. The support level is still remains as 1255. The market’s volume was decreased by 6.8%, traded with 865 MIL shares today. The volume is below the 40 days VMA now. This means that the investors are getting more caution and started reduce their exposure. The rebounce was significant in the afternoon; especially the rubber glove sector rebounded strongly today. There are 459 up counters and 221 down counters.

FBMKLCI Indicators
Bollinger band expansion had soften again, expanded only 2% from yesterday with the candlestick stay below BBMB, indicates KLCI30 still not get out from the recent correction yet.

RSI stay at 34.05 levels indicates KLCI30 still bearish biased.

STC %K and %D hooked up at 25.37 and 15.78 respectively, indicates KLCI30 still bearish but seem to rebound higher. If %K stay above 30 tomorrow, very high chance that the KLCI will continue its technical rebound toward the resistance 1272.

The MACD line dipped below ZERO but the histogram had formed a rounding bottom. This indicates KLCI likely to continue its technical rebound toward 1272 and the BBMB.

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

The mid-term view of KLCI’s bullish trend still intact unless the support level 1250 is broken. However all the indicators like MACD, STC and RSI are bearish biased. If the price can stay above the BBMB in near term, KLCI will escape from the bear trend.









Counters for those who can monitor online and have cut loss policy only

1. Affin - Must break out 2.66 with volume
2. CSCSTEL - Must break above 1.50
3. JAKS
4. AIC
5. CSCENIC - low liquidity
6. Rubber stocks - Supermx, Adventa, Ruberex, Latexx