Technical Commentary 27/04/10

FBMKLCI was traded sideway again today and closed below the resistance 1340.8 at 1339.72 (-0.35, -0.03%). There are 178 up counters and 502 down counters with the market total traded volume increased by 21.9% to 975 MIL shares. The market volume is above 40 days VMA today. Although the index is sideway, the lower liners were under moderate to heavy selling today. The increase of volume partially caused by heavy selling on KNM and TALAM. KNM alone contributed 151.8 MIL shares exchanged. Thus the volume increased today was not healthy to the market and we view it as bearish market. Further analyse the Property Index, Construction Index, Industrial Index and Technology Index, the candlesticks were closed below the Mid-Band and all other indicators are bearish biased. Hence we suggest you to unload your stocks or reduce the exposure.

Today’s FBMKLCI top 5 gainers components are BAT, BJTOTO, GENTING, DIGI and AXIATA. The top 5 lagging components are CIMB, PBBANK, PLUS, AMMB, and TM.


FBMKLCI Technical Indicators
The INDEX was staying above the Mid-Band with the Bollinger band reduced from 9% to 0%; this indicates FBMKLCI is sideway biased.

RSI decreased slightly to 46.12; this indicates FBMKLCI is sideway biased for short term.

STC %K was hooked down to 88.76 and the %D increased slightly to 78.15. This indicates FBMKLCI is bullish biased but may start to turn down.

The MACD is growing side way but still far away from the trigger line. If it crosses the trigger line, it will be bullish biased. The histogram had formed a rounding bottom; this indicates FBMKLCI may have a chance to rebound.

Summary
Most of the indicators above indicate FBMKLCI is side biased however as stated above, the increased of volumes were caused by heavy to moderate selling pressure on the lower liners. Although the index was moving sideway today, the overall market is bearish biased. The candlestick formed a “Doji Star” at the closing; this means the direction is unclear. The nearest possible resistance levels for FBMKLCI are, 1340.8 1347.6, 1354 and the L1 trend line. The nearest possible support levels are BBMB (1335.8), 1334, the L2 trend line, and 1321. Please refer to the chart below for better understanding.