Most Asia stock markets are in Green as much as 2%. This situation is partially supported by the rally on the copper related sources (because of Chile Earthquake) and also certain ease hope on Greece. Our FBMKLCI manages upward by about 12.62 points that mainly contributed by CI components such as CIMB, AXIATA, SIME, IOICORP, RHBCAP, and MAYBANK. However, many second and third liners are in red correction stage.
FBMKLCI opens at 1276.52 (+5.74) with intraday low at 1277.11(+6.33) and high at 1284.90 (+14.12) and finally closed 1283.40 (+12.62, 0.99%) with 355 up counters and 398 down counters. The market’s volume increases by 21.3%% to 1.052bil shares traded above 40 days volume moving average (1.0bil).
FBMKLCI Indicators
KLCI candlestick stays above the BBMB on the uptrend band, but the Bollinger band is contracting at -6%. FBMKLCI is still considered under consolidating situation with bullish biased;
RSI increases to close 59.49; this indicates that the market is bullish biased and is at improving stage;
STC improves with %K closed at 96.09 and the %D stays at 92.73. This indicates that FBMKLCI short term is bullish biased;
The MACD line is improving further and closes just slightly below the ZERO level. This indicates FBMKLCI is bullish biased but it would be more conforming uptrend when it passes the ZERO level;
The market volume has passed above the 40 days volume moving average (1.0bil), implies that the overall market participation is sufficient to push higher;
All the indicators above indicate FBMKLCI is bullish biased. Technically, it closes above 1273 critical level and even breaks 1281 resistance with supportive volume. The only slightly fold back is the Bollinger band contracted -6% same as last trading day. Overall, the market is bullish biased.
The next nearest possible resistance levels are 1286, 1288, 1298, and 1300. The nearest possible supportive levels are 1281, 1276, 1273, 1266, and 1263. Please refer to the picture of FBMKLCI daily chart for your reference.
Counters to consider
SUPERMX
1. Broke out RM6.00 with volume increased above 40 days VMA
2. Bollinger band open 1%
3. RSI at 70.37 bullish zone
4. STC %D and %K above 90, bullish
5. Weekly chart for mid term still uptrend
6. Immediate resistance 6.18
7. Immediate support is 5.75
8. Price supported by 9% special dividend and pending announcement of treasury stock.
Trading Plan: Top up above 6.18, take profit or cut loss below BBMB and 5.60
FABER
1. Open with gap up due to excellent earning result. Up 9% today at 1.81
2. Bollinger band open 61% - bullish
3. RSI at 80.6 bullish
4. STC %D=60.14 and %K=96.87, bullish
5. Weekly chart for mid term still bullish but resisted at 1.81
6. Immediate resistance 1.81
7. Immediate support is 1.68
8. Price supported by 6 cents dividend and good earning
Trading Plan: Buy if the price sustain above 1.81 with volume support, cut loss below BBMB and 1.63
AHEALTH
1. Price continues up for the 3rd day. Up 9% today at 2.30
2. Bollinger band expanded 41% - bullish
3. RSI at 70 bullish
4. STC %D=87.29 and %K=95.35, bullish
5. Weekly chart for mid term is uptrend
6. Immediate resistance 2.40
7. Immediate support is 2.00
8. Price supported by 14.5 cents dividend and good earning
Trading Plan: Since the price had up 3 days, wait for correction and consolidation. If the price retreated below 2.25 is a chance to grab. Cut loss below BBMB and 1.98.
YEELEE
1. Price continues up for another 4.1% with significant volume increase.
2. Bollinger band expanded 2% - remain bullish
3. RSI at 84.78, very bullish
4. STC %D=93 and %K=96.55, very bullish
5. Weekly chart for mid term is uptrend, continues up for 5 weeks
6. Immediate resistance 1.80
7. Immediate support is 1.68
8. Price supported by good earning
Trading Plan: Continue to accumulate between 1.75 to 1.70. Cut loss below BBMB and 1.65.
Other potential stocks but need volume support – park them in your watch list
Jerneh – good earning support
Konsort - good earning support and dividend yield
Unisem – good tech stock
KSL - good earning support
