VK TECHNALYSIS SERVICES (VK 技术分析服务): Technical Commentary 03/15/10

Monday, March 15, 2010

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.

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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