Technical Commentary 13/4/10

Finally we saw a bearish biased signal today after the benchmark KLCI index had traded above the BBMB for the last 13 sessions. FBMKLCI had broken down the Bollinger mid-band (BBMB) today and closed at 1334.52 (-5.09, -0.38%). However it is just supported by the support level 1334 and the L2 support trend line. If it cannot rebound above the BBMB tomorrow, the outlook of FBMKLCI will be bearish biased. The overall market sentiment was bearish throughout the session although there are still many counters traded positively. There are 238 up counters and 494 down counters with the market total traded volume slightly decreased by 7.1 % to 1.027 BIL shares. This is the 7th session the market is traded above 1 million shares.

Today’s FBMKLCI top 5 gainers components are GENM, MMCCORP, HLBANK, ASTRO and PETGAS. The top 5 lagging components are TENAGA, AXIATA, UMW, YTL and BAT.

FBMKLCI Technical Indicators
The INDEX had closed below the mid-band with the Bollinger band contracted another -11%; this indicates FBMKLCI is bearish biased now and will stay consolidation or correction.

RSI hooked down to 73.12; this indicates FBMKLCI still in the bullish zone however RSI is the lagging indicator.

STC %K had broken below 70 threshold to 57.95 and the %D decreased to 62.38. This indicates FBMKLCI is bearish biased now and possible correction for short-term.

The MACD had crosses the trigger line and the histogram continued to form a rounding top. This indicates FBMKLCI short-term consolidation and correction.

Summary
Today is the correction day for most of the up counters for the last few days. FBMKLCI finally breaks below the Mid-Band today and might turn bearish if it cannot resume above BBMB tomorrow. We expect the market will go either sideway or correction for the next few days unless there is a good news pop up. Nevertheless the stocks prices are getting more expensive now and we advice you to wait for them to cool. There are still many good stocks have not go up and you are advice to analyse them before you buy.

The nearest possible resistance levels for FBMKLCI are 1348 and 1354. The nearest possible support levels are BBMB, 1334, 1320, and 1308. Please refer to the chart below for better understanding.