Technical Commentary 03/31/10

As mentioned yesterday, the market will continue to take profit today. FBMKLCI was flat for most of the trading session and traded below yesterday closing before pushing up last mins to close at 1320.57 (+1.22, +0.09%). BAT, PETGAS, PETDAG and CIMB were pushing up last mins to keep the CI “green”. However it is not remarkable and it is still consider as sideway with bullish biased.

There are 275 up counters and 441 down counters with the market total traded volume slightly decreased by –8.2% to 961 MIL shares. The decrease in volume also means some investors started to take profit or reduce their portfolios. However the market’s volume still maintains above 40 days VMA.

Today’s FBMKLCI top 5 gainers components are BAT, CIMB, MISC, PETGAS and PETDAG. The top 5 lagging components are GENTING, NESTLE, RHBCAP, PLUS and TANJONG.

FBMKLCI Technical Indicators
The candlestick still stays above the mid-band with the Bollinger band expanded only 5%, this indicates FBMKLCI up trend is getting weaker and consider as sideway.

RSI hooked down to 44.35 and re-enter the neutral zone, this indicates FBMKLCI still sideway biased.

STC %K had decreased to 89.69 and the %D had increased to 91.85. This indicates FBMKLCI still bullish biased but seem to go sideway.

The MACD line goes sideway and will touch the trigger line soon. The histogram had formed a rounding bottom but still not able to cross above the zero level. This indicates FBMKLCI is sideway with bullish biased.

Summary
FBMKLCI had tested 1320 resistance level for the last 2 days and it just stay above 1320 today. We cannot conclude FBMKLCI had broken out 1320 because it is just marginally stays above it and this is also a last minute pushed up. If tomorrow it can close a few more points higher, then we are confident the market won’t turn around.
The nearest possible resistance levels for FBMKLCI are 1334 and 1353. The nearest possible support levels are 1320, 1308, 1300 and 1292. Please refer to the chart below for better understanding.

Technical Commentary 03/30/10

KLSE was delay by 30 mins and open at 9:30am today. Technically it seem like FBMKLCI opened flat at 1319.21 but it actually opened gap up at 1322.45 (+3.24) at 9:30am. It went as high as 1323.83 (+4.62) but profit taking at 10:15am and it started to drop back to 1319 level. It then consolidates all the way and closed flat at 1319.35 (+0.14. +0.01%). Today is the T+3 and T+4 for many 2nd and 3rd liners, that’s why we saw a lot of profit taking however it also try to keep the KLCI flat. We expect to see more profit taking on the lower liners tomorrow.

There are 279 up counters and 486 down counters with the market total traded volume slightly decreased by –8.1% to 1.05 BIL shares. The decrease in volume could be due to the market delayed by ½ and hour. However the market’s volume still maintains above 40 days VMA. This indicates that the investors still have confident on the market.

Today’s FBMKLCI top 5 gainers components are BJTOTO, MMCCORP, ASTRO, TANJONG and KLK. The top 5 lagging components are MAXIS, MAYBANK, YTLPOWR, PLUS and IOICORP.

FBMKLCI Technical Indicators
The candlestick still stays above the mid-band with the Bollinger band expanded by another 11% today, this indicates FBMKLCI is bullish biased.

RSI hooked up to 50.92, this indicates FBMKLCI had enter into the bullish zone.

STC %K had decreased to 85.83 and the %D had increased to 86.26. This indicates FBMKLCI still bullish biased but seem to go sideway.

The MACD line goes sideway and will touch the trigger line soon. The histogram had formed a rounding bottom but still not able to cross above the zero level. This indicates FBMKLCI is sideway with bullish biased.

Summary
FBMKLCI had tested 1320 resistance level yesterday and today but it still fails to stay above 1320. This means 1320 will provides a strong resistance to FBMKLCI.

The overall market’s volumes still maintain above 40 days VMA and suggest that the market participant is sufficient to absorb any selling pressure. With the up counters less than the down counters, this indicates profit taking was started on lower liners for T+4 and T+3. All the indicators above indicate FMBKLCI still bullish biased but the uptrend is not strong. The market will keep the KLCI flat and rotationally pushing up the lower liners. On the other hand, rotationally profit taking started on lower liners while keeping the CI flat. The nearest possible resistance levels for FBMKLCI are 1320, 1334 and 1353. The nearest possible support levels are 1308, 1300 and 1292. Please refer to the chart below for better understanding.

Counters to Consider:

KFIMA, LIONIND, NAIM, SUCCESS, WASEONG, WEIDA,
DNP, GPACKET.
See charts attached.

Technical Commentary 03/29/10

Good news, our regional market especially Shanghai, Hang Seng, Straits and Taiwan are recovery today. We need their support in order for our market to continue to go up trend. The local market continues to rebound today and now the up sectors had spread to Mesdaq and Plantation. Other sectors like Finance, Property, Trading and Consumer are getting stronger whereas Technology and Construction are sideway.

FBMKLCI continues to rebound today and opened negative at 1313.98 (-1.16). However it resumed uptrend in 30 mins and went as high as 1320.83 (+5.69) before closing at 1319.21 (+4.01, +0.31%).

There are 472 up counters and 308 down counters with the market total traded volume slightly decreased by -9% to 1.13 BIL shares. The market volume maintains above 40 days VMA and this indicates that the investors had gain confident on the market. We believe rotation pushing up will continue while keeping the CI components moderate gain. However the Glove sector is under profit taking today after it had been moving up for a few days.

Today’s FBMKLCI top 5 gainers components are RHBCAP, MAYBANK, AXIATA, YYLPWR and KLK. The top 5 lagging components are BAT, BJTOTO, DIGI, MMCCORP and YTL.

FBMKLCI Technical Indicators
The candlestick still stay above the mid-band with the Bollinger band expand by 16% today, this indicates FBMKLCI had resume the uptrend and it is bullish biased.

RSI further decreased to 46.98 however this indicator is lagging and cannot view KLCI as bearish.

STC %K increased further to 94.34 and the %D had increased to 70.88. This indicates FBMKLCI is bullish biased.

The MACD line continued to hook up today and the histogram had formed a rounding bottom. This indicates FBMKLCI is bullish biased and the rebound will continue.

Summary
The overall market’s volumes maintain above 40 days VMA and suggest that more investors had returned to the market. With the up counters more than the down counters, our market is bullish biased. All the indicators above indicate FMBKLCI
is bullish biased. The nearest possible resistance levels are 1320, 1334 and 1353. The nearest possible support levels are 1308, 1300 and 1292.

Right now the chart of FBMKLCI had formed an ascending wedge with the upper trend line L1 and the lower trend line L2. L1 is the dynamic resistance level and the L2 is dynamic support level. If the CI breaks below the L2, this means it will be bearish in short term. On the other hand, if it breaks out the L1, it will become a higher high and outlook for FBMKLCI is bullish for mid-term.

Technical Commentary 03/26/10

FBMKLCI continues its technical rebound today however it is still consider as consolidation because the Bolinger Band still contracted another -15%. FBMKLCI opened at 1313.37 (+0.89) and it continues to trade within a very narrow range. The index closed at the intra-day high at 1315.14 (+2.66) and the intra-day low was 1313.06 (+0.58).

There are 517 up counters and 238 down counters with the market total traded volume slightly increased by 0.5% to 1.25 BIL shares. This shows that the 2nd and 3rd liners are very bullish by sectors, especially the glove sectors and GLC counters. The market volume maintains above the 40 days VMA and this indicates that the investors had gain confident on the market. We believe rotation pushing up will continue next while keeping the CI components rotation play. However we also need to take caution to protect your capital and enforce your stop loss plan if anything went wrong.

Today’s FBMKLCI top 5 gainers components are GENTING, SIME, GENM, BAT and PPB. The top 5 lagging components are TM, YTLPWR, PBBANK, PETGAS and AXIATA.

Today bullish sectors are Consumer, Construction, Property, Industrial and trading. Technology sector take a break today, with the Financial, Plantation and the ACE market go sideway.

FBMKLCI Technical Indicators
The candlestick still stay above the mid-band with the Bollinger band narrower by -15% today, this indicates FBMKLCI still not get out from the consolidation stage yet.

RSI had decreased to 57.44. This indicates FBMKLCI still under consolidation stage.

STC %K increased further to 100 and the %D had increased to 53.39. This indicates FBMKLCI is bullish biased and had a chance to rebound soon.

The MACD line continued to hook up today and the histogram had formed a rounding bottom. This indicates FBMKLCI is bullish biased and the rebound will continue.

Summary
The overall market’s volumes maintain above 40 days VMA and suggest that more investors had returned to the market. With the up counters more than the down counters, our market is bullish biased. All the indicators above indicate FMBKLCI still not totally get out from the consolidation stage yet but there is a chance to rebound further and turn bullish. The nearest possible resistance levels are 1320, 1334 and 1353. The nearest possible support levels are 1308, 1300 and 1292.

Right now the chart of FBMKLCI had formed an ascending wedge with the upper trend line L1 and the lower trend line L2. L1 is the dynamic resistance level and the L2 is dynamic support level. If the CI breaks below the L2, the means it will be bearish in short term. On the other hand, if it breaks out the L1, it will be bullish and up-trend is confirm for short-term.

Counters to Watch:

Please refer to the charts attached for information.

Technical Commentary 03/25/10

FBMKLCI continues its technical rebound today however it is still consider as consolidation because the Bolinger Band still contracted another -23%. FBMKLCI opened at 1310.75 (+1.3) and it continues to trade within a narrow range. The intra-day high was 1312.53 (+3.08) and the intra-day low was 1308.80 (-0.65). It finally closed positive at 1312.48 (+3.03, +0.23%).

There are 461 up counters and 303 down counters with the market total traded volume increased by 9.5% to 1.24 BIL shares. The market volume maintains above the 40 days VMA and this indicates that the investors had gain confident on the market.

Today’s FBMKLCI top 5 gainers components are TM, SIME, CIMB, TANJONG and AMMB. The top 5 lagging components are MAYBANK, GENM, BAT, PLUS and TANJUNG. The CI consider as sideway however the 2nd and 3rd liners are moving up today. We can notice those fundamental good counters like MPHB finally moved up today after it had been sideway for long time. We believe rotation pushing up will resume while keeping the CI components rotation play. We also notice O&G sector like Kencana, Sapcres, Dialog and etc had started to move. However the steel sector and the plantation sector still silence but I believe their turn will come soon.

FBMKLCI Technical Indicators
The candlestick still stay above the mid-band with the Bollinger band getting narrower by -23%, this indicates FBMKLCI still not get out from the consolidation stage.

RSI had improved to 62.21. This indicates FBMKLCI is bullish biased.

STC %K increased further to 68.30 and the %D had increased to 35.24. This indicates FBMKLCI is bullish biased and had a chance to rebound further.

The MACD line continued to hook up today and the histogram had formed a rounding bottom. This indicates FBMKLCI is bullish biased and the rebound will continue.

Summary
The overall market’s volumes maintain above 40 days VMA and suggest that more investors had returned to the market. With the up counters more than the down counters, our market is bullish biased. All the indicators above indicate FMBKLCI still not totally get out from the consolidation stage yet but there is a chance to rebound further and turn bullish. The nearest possible resistance levels are 1320, 1334 and 1353. The nearest possible support levels are 1308, 1300 and 1292. Please refer to the chart below for more information.

Market News:

Latest launch of 5Mbps, 10Mbps, 20Mbps Broadband Project in Malaysia is officaited by our PM that takes leads on the following counters: TM, KUB, and TIMECOM. TM being the service provider, KUB is awarded with such project, and (I guess) TIMECOM is the infrastructure provider (may be) on physical optical network. Notice that there are wireless and Wimax also in the scope of project.

Since East Malaysia Election is the current affair. The following counters some already on the move and perhaps may go even higher. These counters are for those aggressive traders with cut lost plan.
2852 CMSB (Industrial Product, Finance & Construction themes)
6238 HSL (Construction theme)
7111 WEIDA (Industrial Product, Water theme)
5073 NAIM (Property theme)
5141 DAYANG (Trade & Service, O&G theme)

Recently the market is red hot on Technology theme again with the following counters in focused:
MPI, UNISEM, ENG, GTRONIC, GUH, PENTA, LITYAN, DUFU, D&O, AIC.
Some of these counters may still have room to go higher but must always equip with cut lost plan. Certainly these are for aggressive traders only.

Counter to Watch:

5878 KPJ Healthcare Bhd
Aggressively expending and acquisition merging in Malaysia;
Current PE of 5.18, 2009 dividend yield of 8.30%;
The Bollinger band expanded 75%, RSI is at 71, MACD is hooking upward with histogram forming a round bottom, short term STC is bullish biased. Overall this counter bullish biased. It already broke up the closing line of 2.73 and awaiting to break up candle tail of 2.80 and beyond.
The next potential target price: 2.80, 3.00, 3.26
The near supportive levels: 2.73, 2.68, 2.60
Cut loss could be below 2.60.

5101 EVERGRN (Wood, Timber, or Furniture theme)
Current PE of 9.10 and net asset of 1.38. The MACD crossed above the trigger line above zero level. RSI at 69, short term STC is well in bullish region above 90. It’s observed for breaking up above 1.69. The Bollinger band is expanding at 18%.
The next potential target price: 1.69, 1.76, 2.00, 2.05, 2.16
The near supportive levels: 1.59.
Cut loss could be below 1.58.

2283 ZELAN: this counters is observed with a bullish divergence with MACD which indicates as a repetition of Mar-2009 pattern. Those with WINCHART user may observe the similarity. This is a moderate counter under monitoring.

Technical Commentary 03/24/10

Thanks to overnight DJI up 102.9 points, our market continues to rally today. FBMKLCI opened with gap up at 1309.76 (+4.91) and broke out the BBMB and the 1308 resistance level. It then continued to rally and went as high as 1314.73 (+9.88); an intra-day high before it was soften at 10am. After that profit taking started all the way down and registered an intra-day low at 1307.63 (+2.78) at about 3pm. It was then traded sideway before closed higher at 1309.45 (+4.6, +0.35%).

Right now it had broken up BBMB and 1308 resistance’s level with sufficient market volume. If the momentum can continues tomorrow and the next few days, very high chance that KLCI will retest 1334 resistance’s level and it could register another new high in short term. There are 453 up counters and 255 down counters with the market total traded volume increased by 25% to 1.136 BIL shares. The market volume maintains above the 40 days VMA and this indicates that local and external funds have started to return to the market.

Today’s FBMKLCI top 5 gainers components are AMMB, PPB, CIMB, RHBCAP and BAT. The top 5 lagging components are GENTING, YTLPOWR, MISC, ASTRO and TANJUNG. Today many tech stocks are running especially Gtronics surge like rocket, up 27&. Other tech stocks like GUH, Unisem, AIC, ENG, DATAPRP, PENTA and LITYAN also registered a handsome gain. This is to show that the tech section continues to gain strength and out perform the CI components.

FBMKLCI Technical Indicators
The candlestick had stay above the mid-band with the Bollinger band getting less narrow by -3%, this indicates FBMKLCI stop going downtrend and will get out from the consolidation stage very soon.

RSI still below 70 level but it had hooked up a little at 60.13. This indicates FBMKLCI had stopped falling and started to resume up-trend direction soon.

STC %K hooked up above 30 at 40.92 and the %D had increased to 19.93. This indicates FBMKLCI had a chance to rebound further.

The MACD line started to hook up today and the histogram had formed a rounding today. This indicates the rebound will continue.

Summary
The overall market’s volumes had broken out 40 days VMA and suggest that more investors return to the market. With the up counters more than the down counters, our market is bullish biased today. All the indicators above indicate FMBKLCI still not totally get out from the consolidation stage yet but there is a chance to rebound further and turn bullish. The nearest possible resistance levels are 1320, 1334 and 1353. The nearest possible support levels are 1308, 1300 and 1292. Please refer to the chart below for more information.

Technical Commentary 03/23/10

As mentioned yesterday, the CI components are oversold and there might be a technical rebound soon. However we did not expect the rebound was strong with volume support today. If tomorrow the buying volume can maintain above 900 millions shares, we expect FBMKLCL will break out the BBMB and 1308 to escape from the danger of going downtrend. This could bring KLCI to retest 1334 resistance level and could register another new high in short term.

FBMKLCI opened with gap up today at 1295.82 (+2.17). It then surged as high as 1300.5 (+6.85) within 5 mins and continued to trade sideway around 1300 level before pushed higher near the closing at about 4:40pm. FBMKLCI finally closed at 1304.85 (+11.2, +0.87%). It was resisted by BBMB at about 1305 level right now.

There are 447 up counters and 253 down counters with the market total traded volume increased by 34.5% to 907.7 mil shares. The market volume is above the 40 days VMA now and it indicates the more buyers had return to the market.

Today’s FBMKLCI top 5 gainers components are TM, MAYBANK, CIMB, GENM and SIME. There are only 2 lagging components today, they are BAT and MAXIS. With only 2 lagging components, this indicates the market pushed up was healthy today.

FBMKLCI Technical Indicators
The candlestick still below the mid-band with the Bollinger band contracted by -9%, this indicates FBMKLCI stop going downtrend but it still consider as consolidate with technical rebound.

RSI still below 70 level but it hooks up a little at 57.45. This indicates FBMKLCI
had stopped falling and still consider as sideway.

STC %K hooked up at 30 and the %D further decreased to 16.58. This indicates FBMKLCI started to rebound however it has not turn bullish yet until it breaks out 30 and above stay the BBMB.

The MACD line stopped heading south and goes sideway today. The histogram has a chance to form a rounding bottom if the index continues to rise tomorrow. Once a rounding bottom is formed, FBMKLCI will resume uptrend direction.

Summary
The overall market’s volumes had broken out 40 days VMA and suggest that more investors return to the market. With the up counters more than the down counters, our market is bullish biased today. All the indicators above indicate FMBKLCI is under consolidation stage with technical rebound. The nearest possible resistance levels are BBMB (1305), 1308 and 1334. The nearest possible support levels are 1300, 1292, 1286 and 1280. Please refer to the chart below for more information.

Stock Counters Analysis:

4308 SUNWAY
After 4 days of rally, SUNWAY hit new high of RM1.60 Monday and formed an inverted red hammer. So today, it corrects further and closes at 1.52. Instead, the MACD still remains uptrend biased although profit-taking took place. Interested investors may consider accumulating during consolidation period.
Net asset: 1.28
The next possible target price: 1.80, 2.00.
The nearest possible support ranging level: 1.51-1.45 within the next 2 contra days.
Cut lost plan: could be below 1.44.

3247 GUH
Today is T+4 closing at 1.19 after it hit new high of 1.23. Volume fairly low during correction is acceptable. The chart pattern and MACD indicate the counter still remains uptrend biased. Interested investors may consider accumulating should this counter still in consolidation with low volume in next few days.
Net asset: 1.80
The next possible target price: 1.55, 1.80
The nearest possible supportive ranging level: 1.17-1.15.
Cut lost plan could be below 1.14.

4529 LEADER
This counter has been consolidating within a ascending triangle for the past around two months with upper resistance range of 0.935-0.965. Today it closes at 0.930 with MACD round bottom, Bollinger band open at 23% on uptrend biased pattern.
Net asset: 1.24
The next possible target price: 1.00, 1.05, 1.14
The nearest possible supportive ranging level: 0.920-0.910.
Cut lost plan could be below 0.900

7111 WEIDA
Today is T+3 closing at 0.790 after it hit previous high of 0.825. The MACD still tickling upward, RSI stands at 80, and the Bollinger band open at 13% on uptrend biased pattern.
Net asset: 1.13
The next possible target price: 0.825, 0.855, 885, 0.930, 0.975;
The nearest possible supportive level: 0.765
Cut lost plan could be below 0.760

Market News:

Tuesday March 23, 2010
PM set to woo fund managers at HK forum

HONG KONG: Prime Minister Datuk Seri Najib Tun Razak’s visit to Hong Kong to woo top-notch regional fund managers is timely as Asian economies and markets begin a process of recovery after the recent financial crises.

Fund managers will look for insights to invest in fast-recovering markets, for which Najib stands ready to expound on Malaysia’s zest to become a favourite investment destination and particularly due to its surprisingly quick recovery vis-a-vis other regional and major economies.

Whatever good news he brings to fund managers will be backed by the economy having turned around to chalk a commendable growth of 4.5% in the fourth quarter of 2009 after contractions in the previous three consecutive quarters.

The economy this year is expected to expand between 5% and 6% from a contraction of 1.7% in 2009, thanks largely to the Government’s foresight in unveiling stimulus packages worth RM67bil in the early stages of the global economic meltdown.

This boosted spending and domestic demand, which in the process, stimulated business activity.
Najib begins his pitch to woo portfolio fund managers today by addressing the 13th Asian Investment Conference 2010 organised by global financial services group Credit Suisse.

Najib, who is also Finance Minister, is expected to touch on liberalisation measures, provide hints on the make-up of the soon-to-be unveiled New Economic Model, increased efficiency via the Government transformation plan and moves to make Malaysia a high-income economy.

In a handout on the conference, Credit Suisse said under the leadership of Najib, Malaysia was implementing an aggressive agenda for reform and economic liberalisation.
Measures to attract more foreign investment into its equity market and to achieve a more favourable investment climate were hallmarks of the current government, it said.

Najib will also discuss with Sir John Major, former British prime minister and special adviser to Credit Suisse, steps taken to make Malaysia one of the favourite destinations for investors in Asia and outline the nation’s plan for economic development.

Najib leaves for home on Wednesday. — Bernama

Technical Commentary 03/22/10

FBMKLCI opened flat today at 1295.83 (-0.77). Profit taking was continued all the way and it went down as low as 1292.21 (-4.39) at about 11am. It then started to rebound and went as high as 1297.94 (+1.34) before it closed at 1293.65 (-2.96, -0.23%). The KLCI dropped about 3 points when re-open at 4.50pm. Further analyse found that GENM, AXIATA, BAT and MMCORP were pushed down at 4:50pm. The support level 1292 temporary provide a firm support from now but it is likely to break down if there is no buying volume support.

There are 301 up counters and 364 down counters with the market total traded volume increased by 17.4% to 674.9 mil shares. The market volume still below the 40 days VMA and it is not sufficient to push the market higher.

Today’s FBMKLCI top 5 gainers components are TM, MAYBANK, IOICORP, MAXIS and GENTING, while the top 5 lagging components are GENM, BAT, MMCCORP, AXIATA, and TANJUNG.

FBMKLCI Technical Indicators
The candlestick still below the mid-band with the Bollinger band expanded by 6%, this indicates FBMKLCI getting more bearish biased today.

RSI had dipped below 70 level and further reduced to 54.83. This indicates FBMKLCI still under correction and consolidation stage in short-term.

STC %K dipped below the threshold level (30) at 3.42 and the %D further decreases to 18.77. This indicates FBMKLCI is quite bearish in short term. It also implies the CI components are oversold now and there is chance for it to rebound this week.

MACD still maintains above zero level but it had crossed the trigger line and continues to head south. The histogram had gone beyond ZERO level. This indicates FBMKLCI continues to correct and go sideway.

Summary
The overall market’s volumes still below 40 days VMA and suggest that more investors choose to take profit and go sideline. With the sellers more than the buyers, our market will continue to go sideway or mild correction in short-term. All the indicators above indicate FMBKLCI is sideway and correction.. It also implies the CI components are oversold now and there is chance for it to rebound technically this week. There is no fresh good news to boost the volume at this moment and we believe the correction and consolidation will continue. The nearest possible resistance levels are 1300, BBMB and 1308. The nearest possible support levels are 1292, 1286 and 1280. Please refer to the chart below for more information.

Technical Commentary 03/19/10

Despite DJI registered another 52 wks new high at 10779 (+45.5), our market continues its profit taking from morning all the way until 4:20pm. The market saw some buying interest around 4:20pm and started to gain some strength.

FBMKLCI opened flat at 1301.83 (-0.11) and it went as high as 1303.85 (+1.91) within 10 mins however profit taking quickly took place at 9:10am and it started to drop as low as 1294.97 (-6.97) at about 10:40am. It then started to go sideway and registered an intra-day low 1294.87 (-7.07) at about 3:25pm. FBMKLCI rebounded slightly at about 4:20pm and finally closed at 1296.6 (-5.34.01, -0.41%). Right now the major support level 1300 had been broken today. This also implies that 1300 will become a strong resistance level for FBMKLCI from now.

There are 278 up counters and 357 down counters with the market total traded volume further decreased by 15.1% to 574.7 mil shares. The market volume is below the 40 days VMA and it is not able push the market higher.

Today’s FBMKLCI top 5 gainers components are MMCCORP, AMMB, TANJUNG, MAXIS and BJTOTO, while the top 5 lagging components are GENM, HLBANK, PLUS, IOICORP, and SIME.

FBMKLCI Technical Indicators
The candlestick still below the mid-band with the Bollinger band further contracted by -15%, this indicates FBMKLCI still under correction and consolidation stage in short-term.

RSI had dipped below 70 level and goes sideway to closed at 61.15. This indicates FBMKLCI still under consolidation stage in short-term.

STC %K dipped below the threshold level (30) at 4.38 and the %D further decreases to 25.17. This indicates FBMKLCI is bearish biased in short term. It also implies the CI components are oversold now and there is chance for it to rebound next week.

MACD maintains above zero level but it had crossed the trigger line now. The histogram still remains rounding top. This may suggest further correction or consolidation until a rounding bottom is form.

Summary
The overall market’s volumes are below 40 days VMA and suggest that more investors choose to take profit and go sideline. With the sellers more than the buyers, our market will continue to go sideway or mild correction in short-term. All the indicators above indicate FMBKLCI is sideway and bearish biased. It also implies the CI components are oversold now and there is chance for it to rebound technically next week.
There is no fresh good news to boost the volume at this moment and we believe the correction and consolidation will continue on next weeks. The support level 1300 is broken now, we are looking at 1292 as the next support level.
The nearest possible resistance levels are 1300, 1308 and BBMB. The nearest possible support levels are 1292, 1286 and 1280. Please refer to the chart below for more information.

Technical Commentary 03/18/10

Today’s game was belonging to Astro privatisation news. It is a top active counter and its share price was up 18.82% since it was suspended and re-opens today. However the sentiment cannot lift the market, instead profit taking was continue from yesterday to prevent the index go higher. FBMKLCI opened “GREEN” at 1306.68 (+4.72) due to the overnight DJI was up 47.6 points with 52 weeks new high. The CI went as high as 1307.24 (+5.28) intra-day high however profit taking quickly took place at 9:05am. The index started to fall all the way to 1301.5 at 10:40am and started to consolidate. The index went as low as 1300.62 (-1.34) before closed flat at 1301.94 (-0.01, 0%). This implies that 1308 is providing a strong resistance and 1300 is providing a firm support to FMBKLCI at this moment.

There are 302 up counters and 364 down counters with the market total traded volume was decreased slightly by 8.7% to 677.8 mil shares. The market volume is below the 40 days VMA and it is not able push the index higher.

Today’s FBMKLCI top 5 gainers components are ASTRO, YTL, TANJUNG, YTLPOWR and GENM, while the top 5 lagging components are MMCCORP, BJTOTO, CIMB, GENTING, and AMMB.

FBMKLCI Technical Indicators
KLCI candlestick still below the mid-band with the Bollinger band further contracts by -9%, this indicates FBMKLCI still under consolidation stage in short-term.

RSI had dipped below 70 level and goes sideway to closed at 64.1. This indicates FBMKLCI still under consolidation stage in short-term.

STC %K dipped below the threshold level (30) at 27.14 and the %D further decreases to 30.88. This indicates FBMKLCI is bearish biased in short term.

MACD maintains above zero level but had hooked down to cross the trigger line. The histogram still remains rounding top. This may suggest further correction or consolidation until a rounding bottom is form.

Summary
FBMKLCI was up at the opening however it was not supported by volume and profit taking took place quickly. All the indicators above indicate FMBKLCI is sideway and bearish biased. There is no fresh good news to boost the volume at this moment and we believe the correction and consolidation will continue in the next few days. If 1300 support level is broken, then we are looking at 1292 as a next support level.
The nearest possible resistance levels are 1308, BBMB and 1334. The nearest possible support levels are 1300, 1292 and 1280. Please refer to the chart below for more information.

Technical Commentary 03/17/10

Good evening everyone. We predicted there would be a technical rebound today. Yes, it did rebound today due to oversold and partly due to DJI, Nasqad, SP500 and regional markets in Asia are surging today. It is just a technical rebound as the volume still low and still not able to break out the mid-band at 1308, the immediate major resistance. FBMKLCI surge as high as 1307.08 (+8.22) but it was exactly resisted by the BBMB around 1307-1308. Hence 1308 is a “hard” resistance to break unless the market volume increase >40 days VMA. It was then pull back slowly from the BBMB 1307 and closed at 1301.96 (+3.09, +0.24%)

There are 405 up counters and 268 down counters; this indicates that the market is slightly bullish biased today. The market total traded volume was increase slightly by 9.3% to 741.8 mil shares however it is still below the 40 days VMA. This also indicates more investors are back to the trading floor.

Today’s FBMKLCI top 5 gainers components are AMMB, PETDAG, BJTOTO, GENTING and GENM, while the top 5 lagging components are MAYBANK, MAXIS, YTL, SIME, and NESTLE.

FBMKLCI Technical Indicators
KLCI candlestick still below the mid-band. The Bollinger band further contracts by -6%, this indicates FBMKLCI is under consolidation stage in short-term. We will view it as bullish biased only if it breaks out the BBMB with higher volume >40 days VMA.

RSI had dipped below 70 and goes sideway to closed at 65.48. This is a good sign as it stop going down today.

STC %K hook up and increases to 35.54. The %D further decreases to 39.74. This indicates FBMKLCI is rebounding today but it is not a strong rebound. We rather view it as sideway.

MACD maintains above zero level but still hooks down to cross the trigger line soon. The histogram still remains rounding top. This may suggest further correction or consolidation until a rounding bottom is form.

Summary
The market was rebounded technically today however the rebound was not supported by volume. Hence the index was pulling back from the high of 1307.08 due the profit taking. FBMKLCL still consider as short-term correction and consolidation. The nearest possible resistance levels are 1308 (at BBMB) and 1334. The nearest possible support levels are 1300, 1290 and 1280. Please refer to the chart below for more information.

Technical Commentary 03/16/10

Good evening everyone. Basically the market was sideway today. FBMKLCI open at 1299.68 (+0.01) and go as high as 1304.43 (+4.76) intraday. It was then go sideway with downtrend biased and finally closed flat at 1298.86 ((-0.81, -0.06%). The intraday low was at 1295.31 (-4.3). However the spot month FKLI was closing “GREEN” at 1305.5 (+2.5 points), this is to hint that FBMKLCI might have a chance to rebound tomorrow.

There are 290 up counters and 361 down counters and it was improved from yesterday ratio. This also another hints that the selling is getting softer and there are more bargain hunters today. The market total traded volume was further reduced by 11.2% to 678.6 mil shares and it is below the 40 days VMA. This indicates that more investors sideline and not willing to take any position yet.

Today’s FBMKLCI top 5 gainers components are PPB, SIME, HLBANK, MMC and DIGI, while the top 5 lagging components are TM, MAXIS, CIMB, GENM, and BJTOTO.

FBMKLCI Technical Indicators

KLCI candlestick still below the mid-band and it form a doji star at the bottom of the red candle. There is a chance for technical rebound tomorrow. The Bollinger band further contracts by -7%, this indicates FBMKLCI will start consolidate and go sideway in short-term.

RSI had dipped below 70 and further reduced to 64.51. This indicates that FBMKLCI is getting bearish for short-term.

STC %K further decreases to 29.39 and the %D further decreases to 52.3. This indicates FBMKLCI is bearish biased for short-term.

MACD maintains above zero level but still hooks down and the histogram was forming a rounding top. This may suggest further correction or consolidation until a rounding bottom is form.

The overall market technically is under short-term correction and consolidation. The nearest possible resistance levels are 1300, 1308 and the BBMB. The nearest possible support levels are 1292 and 1280. After we encountered 2 long RED candles for 2 days and a doji star at the bottom of the long candle today, we expect a technical rebound will happen anytime from now. We might see 1292 provides a firm support and rebound from this level for short term. Please refer to the chart below for more information.

Technical Commentary 03/15/10

Good evening everyone. FBMKLCI continues its downtrend today for the 3rd day. It opens flat with 1311.99 and started to fall all the way down from 9:06 am to 10:10am. It was then started to go sideway until the closing at 1299.67 ((-11.53, -0.88%). The intraday low was at 1298.75 (-12.45) and the intraday high was at 1313.3 (+2.18). There are 211 up counters and 461 down counters with the market total traded volume increased by 6.7% to 764.5 mil shares however it is still below the 40 days VMA.

Today’s FBMKLCI only has 4 leading components, they are Astro, UMW, GENTING, and BJTOTO, while the top 5 lagging components are TM, IOICORP, KLK, GENTING, and PBBANK.

FBMKLCI Technical Indicators

KLCI candlestick had dipped below the mid-band now and the Bollinger band further contracted by -14%. This indicates FBMKLCI is under short-term correction stage and it is bearish biased now. If it further dipped below the BBMB with the BB open, then the short term view of FBMKLCI will be bearish biased.

RSI had dipped below 70 and closed at 67.55. This indicates that FBMKLCI is getting bearish now for short-term.

STC %K further decreases to 50 threshold closes at 31.01 and the %D further decreases to 68.95. This indicates FBMKLCI is getting bearish now due to heavy correction was continued today.

MACD maintains above zero level but started to hook down and the histogram was started to form a rounding top scenario. This may suggest further correction until a rounding bottom is form.

The overall market technically is under short-term correction and the market is bearish biased. The nearest possible resistance levels are 1308 and the BBMB around 1305. The nearest possible support levels are 1292 and 1280. After we encountered 2 long RED candles for 2 days, we expect a technical rebound either late tomorrow or Wed. We might see 1292 provides a firm support and rebound from this level for short term. Please refer to the chart below for more information.

Technical Commentary 03/12/10

Good evening everyone. Despite overnight DJI was up 44 points and Nikkie was up more 0.8%, however our market is under heavy correction after our market was up for several days. As what we expected (see JK post yesterday), KLSE was under T+4 force selling today.

FBMKLCI opens with gap down at 1319.60 (-1.83) and the gap was filled in 5 mins. It was then started to drop after it has reach the intraday high of 1321.89 (+0.46) at 9.10am. After that, FBMKLCI suffers a heavy profit taking right after 9.10am until 11am. It was then started to go sideway until the closing. The intraday low was at 1308.79 around 11:10am and finally closed at 1311.20 (-10.23, -0.77%). FBMKLCL was corrected 23 points for 2 days. There are 247 up counters and 436 down counters with the market total traded volume decreased by -9.6% to 716 mil shares which is below the 40 days VMA of 961mil.

Today’s FBMKLCI only has 4 leading components, they are PPB, YTL, TENAGA, and AXIATA, while the top 5 lagging components are SIME, MAYBANK, KLK, GENTING, and CIMB.

FBMKLCI Technical Indicators

KLCI candlestick still above the mid-band and the Bollinger band contracted by -7%. This indicates FBMKLCI is under short-term correction stage, it may move side way next week.

RSI decreases to 73.85. This indicates that FBMKLCI is getting weaker however the bullish trend has not damage.

STC %K decreases to 59.98 and the %D decrease to 81.46. This indicates FBMKLCI is getting bearish now due to heavy correction today.

MACD maintains above zero level but the histogram starts forming the rounding top scenario. This may suggest correction and moving side way.

The overall market technically is in under short-term correction and the overall momentum is decreasing with the market volume traded below VMA. The market will be in consolidating stage next week until the Bollinger band re-opens with the candlestick stay above BBMB. The nearest possible resistance levels are 1320, 1334, and 1353. The nearest possible support levels are 1308, 1304 (BBMB) and 1300. FBMKLCI may retest 1300 level to fill the gap before resume higher.

Please refer to the chart below for more information.

Technical Commentary 11-Mar-2010, Thu

Today all Asia bourses closed at mixed with the fear that China might tighten its monetary policy sooner than later. Institutional investors are taking profits after weeks of rally. Next week will have important events namely Bank of Japan’s policy review and US Federal Reserves’ policy review, and Europe’s review on Greece’s future plans. Perhaps of the above reasons that jerk the market up & down this week, profit taking took place every now and then.

Today, FBMKLCI opens at 1326.35 (-1.87) and up to the intraday high of 1334.34 (+6.12). After then, FBMKLCI suffers profit taking right after 9.45am. The sell rate is improving from around 47% until 63% through the whole afternoon session. The intraday low is at 1318.94 around 4.45pm and finally closed at 1321.43 (-6.79, 0.51%). There are 274 up counters and 440 down counters with the market total traded volume decreased by -15.2% to 792mil shares which is below the 40 days VMA of 961mil.

Today’s FBMKLCI top 5 leading components are IOICORP, AMMB, PPB, DIGI, and MISC, while the top 5 lagging components are SIME, MAYBANK, AXIATA, GENTING, and CIMB.

FBMKLCI Technical Indicators

KLCI candlestick still within the uptrend band and the Bollinger band contracted by -1%. This indicates FBMKLCI is in correction or consolidation stage, may move side way.

RSI decreases to 81.41. This indicates that FBMKLCI is still bullish but weaker momentum.

STC %K decreases to 79.93 and the %D decreases to 90.5. This indicates FBMKLCI is still bullish but soften.

MACD maintains above zero level but the histogram starts forming the rounding top scenario. This may suggest correction and moving side way.

The overall market technically is in uptrend situation but the overall momentum is decreasing with the market volume traded below VMA. The market could be in consolidating stage until the Bollinger band re-open.

Just a reminder, tomorrow, Friday is T+4 force sell day of Monday that attained 1.16bil shares traded exceeded 40 days VMA volume. Since the Asia markets have responded to the fear of China monetary policy implementation down the road and possible next week important events mentioned above, it is reminded to trade with precaution after all the market has been on the uptrend for more than three weeks already.

The nearest possible resistance levels are 1334, 1353, 1380, 1436, and 1524. The nearest possible support levels are 1318, 1308, 1300(BBMB).

Please refers to the chart below for more information.

Technical Commentary 10-Mar-2010, Wed

Unexpectedly, FBMKLCI resumes its uptrend so fast after one day of profit taking. In fact, we are not alone, the overall ASIA bourses also on the uptrend. FBMKLCI open at 1319.27 (+1.33) with intraday high at 1330.21(+12.27) and intraday low at 1319.27 (+1.33) and finally closed 1328.22 (+10.28) with 451 up counters and 292 down counters. The market volume has increased by 17.1% with 934 MIL shares traded, but it was traded just slightly below 40 days volume moving average today.

With the FBMKLCI breaks up and stays above 1308, our market is in very bullish position and may be prepared to go even higher toward our last height of 1524 during Jan-2008.

The market is on the rotational theme trade, today’s FBMKLCI is on the plantation play and non-FBMKLCI is on Technology theme trade. Plantation theme active counters are SIME, PPB, and IOICORP. Counters like ENG, GTRONICS, MPI, DUFU, GUH, and NOTION are actively participated. In the recent theme trade, Steel, Oil&Gas, Property, has not been in the rotational yet.

Today’s FBMKLCI top 5 leading components are SIME, PPB, IOICORP, MAYBANK, and CIMB, while the lagging components are TM, MAXIS, DIGI, and TANJONG.

FBMKLCI Indicators

KLCI candlestick still within the uptrend band and the Bollinger band expanded 11%. This indicates FBMKLCI is bullish biased. Uptrend is still intact.

RSI slightly increase to 88.11, this indicates that FBMKLCI is still bullish. Uptrend is still intact.

STC %K increases to 96.68 and the %D increases to 94.8. This indicates FBMKLCI is still bullish. Uptrend is still intact.

MACD maintains above zero level and today hooked up further. This indicates uptrend is still intact on FBMKLCI.

All the indicators above indicate FBMKLCI is in uptrend status with slight set back is the traded volume is slightly below VMA. The nearest possible resistance levels are 1330, 1353, 1380, 1436, and 1524. The nearest possible support levels are 1318, 1308, 1305, 1300, 1295(BBMB).

Technical Commentary 09/03/10

There was no fresh good or bad news in the global market yesterday; the overnight DJI was flat with –13.68 points. It was also flat on the European market. The regional Asian markets also traded with sideway as there was no fresh news appears today.

As expected profit taking was happen in our local market after a big surged yesterday. FBMKLCI was corrected 6.28 points (-0.47%) with intraday high at 1323.69(-2.0) and intraday low at 1316.29.43 (-9.4) and finally closed 1317.94 with 253 up counters and 455 down counters. The market volume has decreased 31.3% with 798 MIL shares traded. It was traded below 40 days volume moving average today. However during the correction phase, a lower volume is considered as healthy correction.

With the FBMKLCI breaks up and stays above 1308, our market is in very bullish position and may be prepare to go even higher toward our last height of 1524 during Jan-2008.

Today’s FBMKLCI top 5 leading components are PPB, CIMB, IOICORP, MISC and YTL, while the lagging components are GENTING, RHPCAP, PETDAG, KLK and MAYBANK.

FBMKLCI Indicators
KLCI candlestick still within the uptrend band and the Bollinger band expanded only 5%. This indicates FBMKLCI is under short-term correction however it is still bullish biased. Uptrend still intact.

RSI reduced to 87.3, this indicates that FBMKLCI is over heated and under short-term correction however the RSI still bullish. Uptrend still intact.

STC %K reduced to 87.75,74 and the %D increases to 91.02. This indicates FBMKLCI is over heated and under short-term correction however it is still bullish. Uptrend still intact

MACD maintains above zero level and today hooked up further. This indicates upside still intact on FBMKLCI even there is a correction today.

All the indicators above indicate FBMKLCI is under short-term correction however the uptrend status is no damage yet. The correction was healthy as the trading volume is lower. The next nearest possible resistance levels are 1325, 1353, 1380, 1436, and 1524. The nearest possible support levels are 1308, 1300, 1286, and 1283 (BBMB).









Counters to consider and monitor

Notion
1. A good technology stock, which surged as high as 3.52 on 18/1/10, it then started to correct. Buying signal started today with the price break out trend line 3.12.
2. Bollinger band open 7% and MACD hook up across the trigger line, bullish
3. RSI stays at 66.26%, bullish biased
4. STC %D=56.25 and %K =82.61.65, bullish biased
5. Weekly chart is up trend, mid-term bullish
6. Immediate resistance level is 3.26
7. Immediate support level is 3.12
8. Price supported by improved Q409 report (+96%) and global semiconductor demand. Technology stocks are lagging behind. Nasdaq broke new high also affect the bullish view on the local tech stocks like Unisem, MPI, GUH, Penta, ENG, Gtronics and etc. If Unisem broke new high 2.60, many tech stocks will break recent new high. Notion potentially will break 3.52 as well.

Trading Plan: Start to collect below 3.22. Aggressive buy above 3.26. Cut loss at below BBMB 3.00. Hold for mid-term.

Daiboci
1. A good fundamental packing company just broke out new high at 3.74, up 0.28 (+8.1%).
2. Bollinger band open 101% and MACD histogram just started a rounding bottom.
3. RSI stays at 73.7%, bullish biased
4. STC %D=72.7 and %K =100, bullish biased
5. Weekly chart is up trend, mid-term is very bullish
6. Immediate resistance level is today high 3.74
7. Immediate support level is today break out 3.54
8. Price supported by improved Q409 result, Q-Q +169% and Y-Y +180%. It also supported by 6.5 cents dividend pay out. PE=12

Trading Plan: Start to collect below 3.74. Aggressive buy above 3.74. Cut loss at below 3.38 or below BBMB. Hold until before Ex-dividen.

BoxPack
1. Another good fundamental packing company also seem to move up today. Closing price for today is 1.73, up 0.13 (+8.1%).
2. Bollinger band open 20% and MACD histogram just started a rounding bottom.
3. RSI stays at 64.7%, bullish biased
4. STC %D=24.19 and %K =67, may start uptrend soon
5. Weekly chart is up trend, mid-term is bullish
6. Immediate resistance level is 1.83
7. Immediate support level is 1.56
8. Price supported by improved Q409 result, Q-Q +1305% and Y-Y +91%. It also supported by 7 cents dividend pay out. PE=8

Trading Plan: Start to collect below 1.83. Aggressive buy above 1.83. Cut loss at below 1.51 or below BBMB. Hold until before Ex-dividen.

Technical Commentary Monday, 08-Mar-10

Last Friday’s US data shows that US unemployment has improved. Greece debt financial problems were calmed by Euro zone countries policy changes and comments. Perhaps, both continents’ sentiments ease the fears and lifted the world equity markets today. All Asia equity markets up as much as 2%.

Our FBMKLCI also open strongly with gap up at 1313.43 (+13.65) with intraday high at 1325.68(+25.90) and intraday low at 1313.43 (+13.65) and finally closed 1324.22 (+24.44, +1.88%) with 583 up counters and 194 down counters. The market volume has increased by 23.3% to attain 1.16bil shares traded. It is above 40 days volume moving average (1.0bil) now.

With the FBMKLCI breaks up and stays above 1308, our market is in very bullish position and may be prepare to go even higher toward our last height of 1524 during Jan-2008.

Today’s FBMKLCI top 5 leading components are PBBANK, CIMB, SIME, MAYBANK, GENTING, while there are only 3 lagging components are PETGAS, UMW, NESTLE. With the gainers more than losers, this means that the market is bullish biased.

FBMKLCI Indicators

KLCI candlestick jumps even higher within the uptrend band and the Bollinger band expanded greatly by 39%. This indicates FBMKLCI is in very bullish biased position;

RSI increases to close at 93.93, this indicates that the market is bullish biased and is further improved. Uptrend is confirmed;

STC %K stays closed at 97,74 and the %D increases to 90.3. This indicates FBMKLCI is bullish and uptrend is confirmed;

MACD maintains above zero level and today hooked up further. The histogram continues forming rounding bottom. This indicates more upside on FBMKLCI.

All the indicators above indicate FBMKLCI is bullish biased after a second big gap up today. The next nearest possible resistance levels are 1353, 1380, 1436, and 1524. The nearest possible support levels are 1308, 1300, 1286, and 1283 (BBMB).

For the mid-term view, FBMKLCI is bullish biased with Bollinger Band expanded up to 23%, RSI improves to 64.41, STC improves further with %K=98.55, %D=72.07 and MACD continue its histogram of rounding bottom.

The overall scenario of FBMKLCI is very bullish biased today. Should any profit taking were to take place in the coming days and were at supportive levels, that may be is a good opportunity for whom that missed the bull wagon this round.

Please refer to the pictures of FBMKLCI daily chart for your reference.

Weekend Special Commentary (Sat 06/03)

Good morning everyone. In line with KLSE uptrend, overnight DJI, Nasdaq, S&P500 and FTSE100 had confirmed their market uptrend after they broke out of the left shoulder resistance. DJI and SP500 had broken out trend line resistance; the more bullish Nasdaq and FTSE100 even broke out previous high and recorded a new high last night. This is an added advantage for our market to break 1300 and 1308 next week. However most of the Asian markets like Hangseng, STI, TWII, Shanghai and etc still have not get out from the bearish trend yet. We hope they can catch up soon in order to boost our market further to 1350 -1400, we cannot stand alone in Asia. So far our market is outperform the rest in Asia. This is our Malaysia Boleh.

Technically DJI and SP500 having the same pattern to each other. The support trend line with I drawn had been broken down on 22/1/2010. The trend line then became the major resistance for DJI. It had try to break the trend line few times but unsuccessful. It finally broke out last night; at the same time it broke the left shoulder resistance as well. Since it created a higher high and higher low now, it meets the uptrend requirements. So we confirmed that DJI, Nasdaq and SP500 are trending up now. If the trading volume can shoot above 40 days VMA in the next few sessions, we maintain bullish on DJI and it will break above 10729.89 soon. Please refer to the chart of DJI and Nasdaq.









Short-term view on Supermax

Despite the good news of special dividend and bonus issue 1 for 4, the stock price unable to grow further and turn sideway. Technically if the price dips below 6.17 and retreat further to the support level 6.00, the price and the indicator (MACD) will form a bearish divergence signal. If this happen, it will retest the support level 5.85 and 5.75. The MACD rounding top had started and if the MACD line hooks further below the trigger line, the short-term view will be bearish. However at this stage the STC %K and %D still above 70 level but both started to hook down. As long as both STC signals still above 70, the bullish trend had not damage yet.

Counters to consider and monitor

D&O
1. A small technology stock, which surged as high as 0.975 on 12/1/10 from 0.25 on 15/10/09. It then started to correct and the price well supported above 0.665 for 2.5 months. Buying signal started 2 days ago with the price surge 6.85% to 0.785 on Fri.
2. Bollinger band open 93% and MACD hook up across the trigger line, very bullish
3. RSI stays at 71%, bullish biased
4. STC %D=81.82 and %K =95.65, bullish biased
5. Weekly chart is up trend, mid-term bullish
6. Immediate resistance level is 0.79, 0.85
7. Immediate support level is 0.71, 0.665
8. Price supported by improved Q409 report (+474%) and global semiconductor demand. Technology stocks are lagging behind. Nasdaq broke new high also affect the bullish view on the local tech stocks like Unisem, MPI, GUH, Penta, ENG, Gtronics and etc. If Unisem broke new high 2.60, many tech stocks will break recent new high. D&O potentially will break 0.975 as well.
Trading Plan: Start to collect at 0.785 or lower. Aggressive buy above 0.795. Cut loss at below BBMB and 0.665. Hold for mid-term.

ENG
1. Another under value technology stock that has some sign of buying interest on Fri. It was up 3.2% and closed at 1.96.
2. Bollinger band open 1% and MACD started to hook up again- bullish
3. RSI at 74, bullish biased
4. STC %D=68 and %K=80, bullish biased
5. Weekly chart for mid term is uptrend
6. Immediate resistance level is 1.97, 2.02 and 2.04
7. Immediate support level is 1.91 and 1.87
8. Price supported by 17.7 cents EPS (+636%) and dividend 6 cents a share. Other factors same as point no.8 above for tech stock.

Trading Plan: Continue to collect below 1.97, aggressive buy above 2.04. Cut loss below BBMB and 1.84. Hold for mod-term.

LIONFIB
1. Lion Forest is in the consumer sector under Lion Group. It started to trade aggressively on Friday and broke new high and closed at 1.54 (+6.9%). Since the price had up > 12% since Thurs, a mild profit taking will occur that might prevent the price surge higher in short term.
2. Bollinger band open 71% and MACD started to hook up again- bullish
3. RSI at 77.5, bullish biased
4. STC %D=59.37 and %K=95.45, bullish biased
5. Weekly chart for mid term is uptrend, very bullish
6. Immediate resistance level is Friday high 1.55
7. Immediate support level is 1.51 and 1.47
8. Price supported by 23.24 cents EPS, serious under value stock, PE only 2.07.

Trading Plan: Continue to collect below 1.55, aggressive buy above 1.55. Cut loss below 1.45 or below BBMB. Hold for mid-term.

LIONIND
1. Another Lion family in the industrial sector, which involve on steel business under Lion Group. There is a buying interest on Friday and it broke out symmetrical triangle and closed at 1.79 (+3.5%). As this is the 1st day moving up, I predict it will break the resistance 1.80 and retest the recent high 1.84. Volume is below 40 days VMA on Friday. We need to see volume grow on next week.
2. Bollinger band open 27% and MACD hook up a few days, very bullish
3. RSI at 75, bullish biased
4. STC %D=89 and %K=100, very bullish
5. Weekly chart for mid term is uptrend, very bullish
6. Immediate resistance level is 1.80, 1.84
7. Immediate support level is 1.76, 1.71 and the BBMB
8. Price supported by 11.7 cents EPS (+282%) and PE as low as 4.16. This a very good steel stock to invest under Malaysia stimulus plan.

Trading Plan: Continue to collect below 1.80, aggressive buy above 1.84. Cut loss below BBMB or lower. Hold for mid-term.

Technical Commentary 05/03/10

Despite the overnight banking rate was increased by 25 basic points, our market responded positively on the sight of recovery with Q409 GDP grow >4.5%. This could be the reason that boosts the Malaysian Market today, Malaysia Boleh!

FBMKLCI opens strongly with gap up at 1295.67 (+11.56) with intraday high at 1300.74(+16.65) and intraday low at 1289.87 (+5.78) and finally closed 1299.79 (+15.89.01, +1.22%) with 547 up counters and 194 down counters. With the CI stay above 1292, we finally confirmed our market had turn uptrend and view as bullish. The market’s volume increases by 29.6% to 941mil shares traded, it is slightly below 40 days volume moving average now.

Today’s main contributors are Maybank (+5.56%) and Genting (+6.40). Top 5 leading KLCI components are MAYBANK, GENTING, BAT, RHBCAP, and PETDAG, while the top 5 lagging KLCI components are AMMB, BJTOTO, MISC, KLK, and MAXIS. With the gainers more than losers, this means that the market is bullish biased.

FBMKLCI Indicators

KLCI candlestick still stays above the BBMB on the uptrend band and the Bollinger band expanded by 16%. This indicates FBMKLCI uptrend momentum had started and turn bullish biased.

RSI increases to close at 92.97, this indicates that the market is bullish biased and is further improved. Uptrend is confirmed.

STC had hooked up with %K closed at 97,86 and the %D increase to 86.92. This indicates FBMKLCI is bullish and uptrend is confirmed.

MACD maintains above zero level and today hooked up again. The histogram had escaped from forming a rounding top. This indicates more upside on FBMKLCI.

All the indicators above indicate FBMKLCI is bullish biased after a big up today. The view was totally changed from yesterday; which possible turn down trend or sideway. The next nearest possible resistance levels are 1300 and 1308.5. The nearest possible support levels are 1292, 1284 and 1276.

For the mid-term view, FBMKLCI had turn bullish. Bollinger band open 10%, RSI at 57.69, STC %K=89.61, %D=54.71 and MACD hooked up with the histogram starting to form a round bottom. The nearest resistance level is 1308 and the support level is 1275.

Please refer to the pictures of FBMKLCI daily chart for your reference









Counters to consider and monitor for next Monday

Will post on Saturday, please re-visit us

Technical Commentary 4-Mar-2010, Thursday:

Today our FBMKLCI opens at 1286.69 (+0.59) with intraday high at 1287.78(+1.68) and intraday low at 1284.09 (+2.01) and finally closed 1284.09 (+2.01, 0.16%) with 281 up counters and 385 down counters. The market’s volume decreases by 15.9% to 726mil shares traded, 3rd day below the 40 days volume moving average (1.03bil).

Actually today is T+3 day after the market volume past above VMA. Since morning session, the FBMKLCI market has been in the selling biased increasing nominally from around 58% to 64% in the afternoon. During the last 15 minutes, the FBMKLCI is further push down mainly by PETDAG (down 0.29) by additional 2 points.

Today’s top 5 leading KLCI components are MAYBANK, PBBANK, YTLPOWER, IOICORP, and AXIATA, while the top 5 lagging KLCI components are AMMB, PETDAG, PETGAS, TENAGA, and MAXIS. Many second and third liners are still correction and consolidation stage.

FBMKLCI Indicators

KLCI candlestick still stays above the BBMB on the uptrend band but today the Bollinger band start to contract by 4%. This indicates FBMKLCI uptrend momentum had reduced and consolidating sideway.

RSI increases to close 89.18, this indicates that the market is bullish biased and is further improved. However, RSI is a lagging indicator and respond slower than STC.

STC had hooked down with %K closed at 76.45 and the %D decreases to 86.13. Since the %K is lower than %D, this indicates FBMKLCI is turning around from uptrend to sideway or correction. However, as long as the STC still stay above 70, FBMKLCI still is viewed as bullish biased.

Although the MACD has been broken up above zero level, but today it formed a round top with lower market volume which closed below 40 days volume moving average (1.03bil). This implies that the overall market participation is insufficient to sustain the market higher.

All the indicators above indicate FBMKLCI still bullish biased but FBMKLCI continues correction and consolidating side way. If this scenario is continued for the next few days, the short term view for FBMKLCI will be turning bearish if failed to be supported by BBMB.

Tomorrow is Friday, it is also viewed as T+4 (force selling day) with respect to the 1.06bil traded volume 3 days ago (1-Mar, Mon). So, if tonight and tomorrow has no good news to lead the market, tomorrow may has a further dip in FBMKLCI with the support levels as mentioned below.

The next nearest possible resistance levels are 1288, 1292, 1298, and 1300. The nearest possible support levels are 1281, 1276, 1273, and 1266.

Please refer to the picture of FBMKLCI daily chart for your reference

Technical Commentary 03/03/10

As expected, FBMKLCI had already up for 6 trading sessions, it is time for it to take a break. Today our FBMKLCI opens with gap up at 1290.51 due to bullish biased on Greece rescue hope. It continued to climb as high as 1292.35 (+4.35) before profit taking started at 930am all the way down to 1284.5 (-3.5) at 12pm. It was then consolidate and closed at 1286.10 (-1.97, -0.15%) with 294 up counters and 402 down counters. The market’s volume increases by 2.9% to 863.7mil shares traded, below the 40 days volume moving average.

Today’s top 5 lagging components are CIMB, MAYBANK, SIME, TANJUNG, and PLUS that dragged down the CI, while the top 5 leading components are PBBANK, MMCCORP, GENM, RHBCAP, and YTLPOWER. Many second and third liners are under correction and consolidation stage.

FBMKLCI Indicators

KLCI candlestick still stays above the BBMB on the uptrend band and today the Bollinger band expanded only 1%. This indicates FBMKLCI uptrend momentum had reduce and will turn sideway soon.

RSI increases to close 76.15, this indicates that the market is bullish biased and is at improving stage. However RSI is a lagging indicator and respond slower than STC.

STC had hooked down with %K closed at 87.34 and the %D decreases to 81.88. Since the %K is lower than %D, this indicates FBMKLCI is turning around from uptrend to sideway or correction. However as long as the STC still stay above 70 level, FBMKLCI still view as bullish biased.

Unfortunately, the MACD breaks up above zero level does not supported by the market volume which closed below 40 days volume moving average (1.02bil), implies that the overall market participation is insufficient to sustain the market higher.

All the indicators above indicate FBMKLCI still bullish biased however if FBMKLCI continues to go sideway or correction on the next few sessions, the short term view for FBMKLCI will be bearish. The next nearest possible resistance levels are 1288, 1292, 1298, and 1300. The nearest possible supportive levels are 1284 (small gap), 1276, 1273, 1267, and 1266. Please refer to the picture of FBMKLCI daily chart for your reference.