Technical Commentary 02/4/10

Thanks to DJI and Asian bourses continue to performance positively, FBMKLCI was closing at 1335.94 (+6.10, 0.46%) and registered another 26 months new high today. It went as high as 1337.21 (+7.37) and it was opened at intra-day low at 1329.28 (-0.56). The heavy weight blue chips like CIMB, Tanjong and PBBank continue to support the composite index. Right now 1334 had been broken, the next resistance will be today intra day high 1337, 1342 (L1 trend line) and 1353.

There are 430 up counters and 244 down counters with the market total traded volume slightly increased by 2.5% to 827.9 MIL shares. The market’s volume still maintains slightly above 40 days VMA. Basically it is still sufficient to keep the market running.

Today’s FBMKLCI top 5 gainers components are CIMB, BAT, TANJONG, PBBANK and YTLPOWR. The top 5 lagging components are UMW, GENM, MAXIS, GENTING and AXIATA.

FBMKLCI Technical Indicators
The candlestick still stays above the mid-band with the Bollinger band expanded another 17%, this indicates FBMKLCI is bullish biased and uptrend still intact.

RSI hooked up again to 68.74; this indicates FBMKLCI is bullish now. Uptrend will continue.

STC %K increased to 97.18 and the %D increased to 92.09. This indicates FBMKLCI is bullish biased. Uptrend will continue.

The MACD continues to hook up and crosses the trigger line. The histogram had formed a rounding bottom and maintains above the zero level. This indicates FBMKLCI is bullish biased. Uptrend still intact.

Summary
FBMKLCI had broken the key resistance level 1334 today and it will face a tougher resistance levels soon. The nearest possible resistance levels for FBMKLCI are 1342 (L1 trend line), 1353 and 1436. The nearest possible support levels are 1334, 1320, and 1308. The mid-term view of FBMKLCI also bullish biased and the market is uptrend now. Please refer to the chart below for better understanding.