Despite the fact that most Asia stock markets are in Red, our FBMKLCI still manages in “Green” at 1275 which led by AXIATA mainly and seconded by Maxis and CIMB until “Trading at last” the whole KLCI was dragged down by SIME (dropped additional 10sen, 500Lots) to close FLAT exactly. Finally, FBMKLCI closed 1270.78 with 349 up counters and 352 down counters. The market’s volume increases by 33% to 867mil shares traded but still below 40 days volume moving average. Technically, it’s still closed below 1272 critical level. So obviously, the resistance levels are still at 1272, 1276, 1281, and 1288, and the support levels are 1266, 1262, 1256, and 1252.
FBMKLCI Indicators
Despite expanded 12% yesterday, with the dragged down to close flat, the Bollinger band become contracted -6% today. Although the candlestick stays above the BBMB but the contraction in Bollinger band, FBMKLCI is considered entering consolidating situation with bullish biased;
RSI was above 50 but decrease slightly back to 54.59; this indicates that the market is bullish biased but consolidating stage;
STC %K closed at 81.67 and the %D stays at 93.37. This indicates that FBMKLCI is bullish biased but consolidating stage;
The MACD line had crossed the trigger line and continues to approach the ZERO level. This indicates FBMKLCI is bullish biased but uptrend has not confirmed until it passes the ZERO level.
The market volume has not passed above the 40 days volume moving average (996mil), implies that the overall market participation is still insufficient to push higher.
All the indicators above indicate FBMKLCI is bullish biased but consolidating stage. Technically, the uptrend has not confirmed unless it closed with breaks out 1272 or higher and stays above this level. Please refer to the picture of FBMKLCI daily chart for your reference.
Weekly Analysis
The overall market has increased by +13.11 (+1%) to close at 1270.78 but still below the weekly Bollinger middle band (1272). This implies that the market has not entered into bullish stage yet. The weekly volume has increased by 57.4% to 2.78bil shares but still below 40 days volume moving average that is around 4.68bil shares. In order for more confirming market, the volume will have to be above the moving average level. The Bollinger band is contracting at -2% implies the market is still in consolidating stage. A little bit of good sign is that the MACD histogram is forming a round bottom. STC and RSI are both around 50 line level.
Again, in order for the market to resume up trend, FBMKLCI has to closed and stay above 1272 subsequently. Otherwise, the market still negative biased.
