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.