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.
