VK TECHNALYSIS SERVICES (VK 技术分析服务): Technical Commentary 18/2/2010

Thursday, February 18, 2010

Technical Commentary 18/2/2010

As expected due to low trading volume, the market is flat today. FBMKLCI was consolidated most of the trading session and closed at 1259.39 (-0.07, 0.01%). The immediate support level for FBMKLCI is 1255 and the BBMB at about 1251. The resistance level is 1268 and the next critical resistance level is 1272. The market’s volume was increased by 9.9% and traded with 598.8 MIL shares today. The market volume still below 40 days VMA and it is insufficient to maintain the market to go up trend in short term. There are 233 up counters and 412 down counters. With the losers more than the gainers, this indicates the overall market is bearish bias.

FBMKLCI Indicators
The Bollinger band is flat at 0% with the candlestick stay above the BBMB, indicates FBMKLCI is side way – consolidation.

RSI flat at 31.86, indicates FBMKLCI still consolidates with bearish biased.

STC %K closed at 79.96 and the %D stays above 50 at 70.58, this indicates the FBMKLCI is trending up. However the BB is still flat, the bullish trend still needs to be confirmed.

The MACD line is below ZERO and still unable to cross the trigger line yet. The histogram had formed a rounding bottom, indicates there is a chance for FBMKLCI to go uptrend but it still not confirm until the MACD line hook up above the ZERO level.

All the indicators above indicate FBMKLCI was consolidated with slightly bearish biased. 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)

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