Technical Commentary 22/4/10

FBMKLCI was traded sideway today however the overall market was getting slightly bullish toward the afternoon session. FBMKLCI still considered as sideway although it manages to push higher toward the closing at 1337.01 (+3.37, +0.25). Right now the index is stay above the BBMB for the 1st time after 7 sessions. There are 333 up counters and 307 down counters with the market total traded volume slightly decreased by 4.7% to 833.9 MIL shares and slightly below 40 days VMA.

Today’s FBMKLCI top 5 gainers components are GENTING, BAT, MMCCORP, YTL and PLUS. The top 5 lagging components are CIMB, PETGAS, AMMB, TENAGA and HLBANK.

FBMKLCI Technical Indicators
The INDEX finally stays above the mid-band with the Bollinger band further contracted by -27%, this indicates FBMKLCI is consolidating for short-term.

RSI decreased slightly to 55.08; this indicates FBMKLCI is sideway biased for short term.

STC %K was increased to 68.91 and the %D increased to 48.97. This indicates FBMKLCI might have a chance to rebound. However with the Bollinger band still contracting, the upside is limited.

The MACD still heading south but the histogram is started to form a round bottom, this indicates FBMKLCI short-term consolidation but it might rebound soon.

Summary
Most of the indicators above indicate FBMKLCI is consolidation however some indicators like STC and MACD histogram indicate the index might have a chance to rebound soon. If the market volume can further improve, the chances of rebound will be better. The nearest possible resistance levels for FBMKLCI are 1340, 1347.6 and 1354. The nearest possible support levels are BBMB (close to 1334), the L2 trend line, 1318 FIBO and 1292. Please refer to the chart below for better understanding.