Technical Commentary 16/4/10

Finally FBMKLCI closed below the BBMB and L2 support trend line at 1332.77 (-6.06, -0.45%). The overall market sentiment was bearish biased today even though DJI making another new high. The sellers are taking control today, as there are 201 up counters and 495 down counters with the market total traded volume decreased by 25% to 783 MIL shares. The total traded volume is below 40 days VMA; that’s means investors had reduce their positions and take caution today.

Today’s FBMKLCI top 4 gainers components are DIGI, UMW, NESTLE, and MISC. The top 5 lagging components are AXIATA, AMMB, BAT, YTL and PETDAG.

FBMKLCI Technical Indicators
The INDEX had dropped below the mid-band with the Bollinger band contracted -9%; this indicates FBMKLCI is bearish biased now. Fortunately the Bollinger band had not expand yet, once it expands with the candlestick stays below the BBMB, KLCI will be correct for short term.

RSI dipped below the threshold 70 at 63.72; this indicates FBMKLCI is bearish biased.

STC %K decrease below 30 to 14.42 and the %D decreased to 48.94. This indicates FBMKLCI is bearish now.

The MACD had crosses the trigger line and the histogram continued to dip below ZERO level. This indicates FBMKLCI short-term consolidation or correction.

Summary
FBMKLCI finally dipped below the L2 support trend line and BBMB. With the market volumes traded below 40 days VMA, the short-term view of KLCI will be bearish. The L2 and the BBMB will become the resistance for KLCI now.
The nearest possible resistance levels for FBMKLCI are 1334, L2, BBMB and 1347.6. The nearest possible support levels are 1320, 1308 and 1292. However the mid-term view of FBMKLCI bullish view has not damage yet. Please refer to the charts below for better understanding.