Technical Commentary 01/4/10

FBMKLCI was opened flat at 1319.67 (-0.9), however it is shooting upward just within 10 mins time and went as high as 1332.58 (+12.01) at 9:40am. After that a minor profit taking and traded sideway above 1329 and finally closed at 1329.84 (+9.27, 0.7%). The positive performance of the regional market was the key factor to keep the CI bullish. A few big cap CI components like CIMB, Tanjong, MISC, PPB and Nestle are the main contributors to the index today. However there are still many lower liners are under correction. We are bullish on FBMKLCI now and there is a potential for it to break out 1334 tomorrow or next week.

There are 423 up counters and 316 down counters with the market total traded volume decreased by –16% to 807 MIL shares. However the market’s volume still maintains at 40 days VMA.

Today’s FBMKLCI top 5 gainers components are CIMB, MISC, TANJONG, PPB and NESTLE. The top 5 lagging components are BJTOTO, GENM, AMMB, PLUS and SIME and YTLPOWR.

FBMKLCI Technical Indicators
The candlestick still stays above the mid-band with the Bollinger band expanded 17%, this indicates FBMKLCI up trend is resume after it had pushed 9.27 points today.

RSI hooked up again to 55.99 and re-enter the bullish zone, this indicates FBMKLCI is bullish now. Uptrend will continue.

STC %K had decreased to 93.21 and the %D had increased to 90.85. This indicates FBMKLCI is bullish biased. Uptrend will continue.

The MACD line finally hooked up and crossed the trigger line. The histogram had formed a rounding bottom and crossed above the zero level. This indicates FBMKLCI is bullish biased now. Uptrend will continue.

Summary
FBMKLCI had confirmed broke out 1320 resistance level today and it will retest 1334 resistance level soon. The market is confirmed uptrend now however the market volume had decreased to 807 million shares, it is just manage to touch the 40 days VMA. The nearest possible resistance levels for FBMKLCI are 1334, 1340, 1353 and 1426. The nearest possible support levels are 1320, 1308, 1300 and 1292. Please refer to the chart below for better understanding.