The overall market sentiment was turned bearish after the benchmark KLCI fell about 1% today. There are 239 up counters and 476 down counters with the market total traded volume increased by 12.7% to 1.27 BIL shares. Although the selling is heavy, there are still many investors willing to buy the stocks at lower price. The market still consider active and Scomi family contributes 3 out of 4 most active counters today.
Today’s FBMKLCI top 5 gainers components are ASTRO, GENTING, BAT, PETDAG and NESTLE. The top 5 lagging components are CIMB, MISC, GENM, MMCCORP and PLUS.
FBMKLCI Technical Indicators
The candlestick manages to stay above the mid-band with the Bollinger band contracted -9%; this indicates FBMKLCI is under correction and may consolidate from this level. The BBMB temporary provides support to FBMKLCI for now.
RSI retracted at 71.55; this indicates FBMKLCI will correct in short-term. However it is still above the 70 levels, this means the bullish trend has not broken yet.
STC %K decreased to 57.51 and the %D decreased slightly to 87.68. This indicates FBMKLCI was under correction but the %D still stay above 70 levels, this means the bullish trend has not broken yet.
The MACD hooked down and the histogram had formed a rounding top. This indicates FBMKLCI short-term correction.
Summary
FBMKLCI had broken down the L1 trend line and further broke below the support level 1334 today. It was supported by BBMB at about 1330.5 at this stage. We believe the correction is healthy in order for the market to rally further. We also expect the correction and consolidation to be continued in the next few days. If the support level 1292 has not broken, the market up trend direction still intact.
The nearest possible resistance levels for FBMKLCI are 1334, 1347.61 and 1353. The nearest possible support levels are 1330.4 (BBMB), 1320, and 1308. Please refer to the chart below for better understanding.
