Technical Commentary 14/4/10

Thanks to better than expected earning result from Intel and positive performance of the regional bourses, FBMKLCI rebounded above the BBMB in the 1st 30 minutes in the morning at the intra-day high of 1341.52 (+7.0). However profit taking started from 9:30am and it started to fall and finally closed positive at 1335.89 (+1.37, +0.1%). FBMKLCI considered as sideway although it manages to close positive. The overall market sentiment was bullish biased as rotational play continues today. There are 375 up counters and 326 down counters with the market total traded volume decreased by 17% to 845 MIL shares. This is the 1st time the volume traded below 1 BIL shares after it had been traded above 1 BIL shares for the last 7th sessions. The volume is below 40 days VMA now, this means that the investors started to sideline.

Today’s FBMKLCI top 5 gainers components are GENTING, TENAGA, RHBCAP, TM and PETDAG. The top 5 lagging components are TANJONG, ASTRO, DIGI, SIME and MISC.

FBMKLCI Technical Indicators
The INDEX still slightly below the mid-band with the Bollinger band contracted another -18%; this indicates FBMKLCI is sideway biased now and will stay consolidation or correction.

RSI hooked down slight to 71.69; this indicates FBMKLCI still in the bullish zone however RSI is the lagging indicator.

STC %K decrease slightly to 58.22 and the %D decreased slightly to 62.79. This indicates FBMKLCI is consolidation.

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
FBMKLCI rebounded slightly today thanks to Intel Q1 result better than expected and positive performance of regional bourses. However the index counters still sideway. It is still below the BBMB slightly and short-term view is consolidate and correction.
The nearest possible resistance levels for FBMKLCI are the BBMB about 1337, 1348 and 1354. The nearest possible support levels are BBMB, 1334 (L2), 1320, and 1308. Please refer to the chart below for better understanding.