VK TECHNALYSIS SERVICES (VK 技术分析服务): Technical Commentary 08/02/10

Monday, February 8, 2010

Technical Commentary 08/02/10

The bear trend on FBMKLCI was continued today. The selling pressure is higher in the afternoon trading session and closed at 1235.22 (-12.68, -1.06%). FBMKLCI right now just at the support level around 1232 to 1236. FBMKLCI nearest resistance level is 1247-1250. The immediate support level is 1232 and the next support level is about 1200 to 1197. The market’s volume had decreased by 16.2%, traded with 769 MIL shares today. The decrease of market volume also means that the investors had reduce their exposure and started to sideline. There are 119 up counters and 608 down counters.

FBMKLCI Indicators
Bollinger band had retracted -1% with the candlestick still stay below BBMB, indicates FBMKLCI bear trend will continue but seem to go side way and consolidate from now.

RSI stay below the threshold 30 at 18.35, indicates FBMKLCI is bearish and oversold.

STC %K and %D stay at 1.0 and 11.79 respectively, indicates FBMKLCI quite bearish and oversold.

The MACD line dipped below ZERO and the histogram dipped further. This indicates the bear trend will continue.

All the indicators above remain bearish for FBMKLCI. However the STC and the RSI had indicated the market is oversold. We will see a technical rebound soon. Please refer to the picture of FBMKLCI daily chart for your reference.

Stock Market Language 股市语言

In the stock market everyone hope to "Buy Low Sell High". In practical, it is very difficult to achieve. There are 5% of the investors are able to achieve that however they are not buying at the lowest or selling at the highest. In other word they buy at the RIGHT timing and sell at the RIGHT timing.
每个人都希望在股市“低买高卖”。但实际上是非常困难的。只有5％的投资者能够实现，但是他们不是在最低买进或在最高卖出。换句话说，他们是在适当的时机买进和卖出。

Human nature is full of Greed and Fear. The emotion of human was reflected on the movement of the stocks' prices.
股票的价格变动中反映出人性的贪婪和恐惧。

What should we do while waiting for the market to correct?

No stock to buy very boring right? While you are waiting for the market to correct, you can actually sharpen yourself and get more funds ready for the next run.

1. You can subscript Winchart to sharpen your skill. VK Technalysis Services provides training twice a month in North Malaysia. Other regions please refer to http://www.straitsindex.com/.

2. EPF contributors have an option to withdraw EPF funds to invest on stocks from account No. 1 to standby and get ready for the next run.

For details, please contact VK Technalysis Services
Penang: 012-4168868 (Vincent Liew)
Kedah and Perlis: 012-4259118 (JK)
B'worth, Kulim and BM : 012-4212533 (Wong)

Important Disclaimer

This is merely an information and knowledge for sharing purpose. Any statements, opinions, comments, views, or trading suggestions made within this Blog should not or cannot be construed as advice or a solicitation to buy or to sell actions in any means of capital investments referred to. The company VK Technalysis Services, the owners of this Blog, and the authors of this Blog are not licensed investment advisors. All the readers of this Blog should seek or consult the expertise of a Licensed Financial Advisor, or stocks or futures broker before making any of their investment decisions. All sort of trading or investment in any financial instruments involve the risk of loss. We shall not be liable for any losses suffered by the readers from following our statements, opinions, comments, views, technical analysis, or suggestions made within this Blog. And you as a reader agree that our company and any authors mentioned within this Blog are not liable for any losses incurred upon your own due diligence in investment or business decisions that is directly or indirectly related to the information, knowledge education, services, and products from this Blog.