Monday, April 12, 2010

Technical Commentary 12/4/10

Thanks to DJI closed near 11000 new high, FBMKLCI opened with gap up at 1336.39 (+2.41). It continued to climb as high as 1344.12 (+10.14) however it was resisted by L1 trend line and retreated to close at 1339.61 (+5.63, +0.42%). FBMKLCI still consider as consolidate but TCHONG, UNISEM, WARISON and AJI continued to power the 2nd liners top gainers. MEASAT even shoot up 58 cents to top the overall gainer after having consolidated for 13 days.

The overall market sentiment is bullish biased although it was about 50-50 up and down counters. There are 374 up counters and 367 down counters with the market total traded volume slightly decreased by 11.8 % to 1.1 BIL shares. This is the 6th session the market is traded above 1 million shares. The outlook of KLSE still bullish biased.

Today’s FBMKLCI top 5 gainers components are MISC, TANJONG, PPB, CIMB and PETGAS. The top 5 lagging components are HLBANK, AXIATA, NESTLE, YTL and BAT.

FBMKLCI Technical Indicators
The candlestick still stays above the mid-band with the Bollinger band contracted another -10%; this indicates FBMKLCI still under consolidation stage.

RSI hooked to 82.7; this indicates FBMKLCI is bullish biased.

STC %K had increased to 74.3 and the %D decreased to 72.06. This indicates FBMKLCI is bullish biased.

The MACD went flat and almost touching trigger line. The histogram continues to form a rounding top. This indicates FBMKLCI short-term consolidation.

Summary
Although the composite index counters were under consolidation, the good fundamental lower liners like TCHONG, UNISEM, AJI, APM and etc were continued to push up today. We expect the market will go uptrend some more provided there is no bad news around. Nevertheless the stocks prices are getting more expensive now. We expect rotational play will go on but you are advice to pick only good and under value counters to lower your risk.

The nearest possible resistance levels for FBMKLCI are 1348 (L1) and 1353.8. The nearest possible support levels are BBMB, 1334, 1320, and 1308. Please refer to the chart below for better understanding.