Technical Commentary 30/4/10

Thanks to overnight DJI gained 122 points, FBMKLCI opened with gap up and continued to break out the resistance level 1347.61 at an intra-day high of 1348.15 before closing at 1346.38 (+10.52, +0.79%). FBMKLCI considered as bullish however the overall market volume still traded below 40 days VMA. There are 436 up counters and 265 down counters with the market total traded volume slightly decreased by 1.1% to 889 MIL shares.

Today’s FBMKLCI top 5 gainers components are AXIATA, TANJONG, GENTING, MAYBANK, and MMCCORP. The top 4 lagging components (only 4 losers today) are UMW, PETGAS, MISC, and KLK.

FBMKLCI Technical Indicators
The INDEX stays above the Mid-Band with the Bollinger band expanded 30%; this indicates FBMKLC is bullish biased for short-term.

RSI further increased to 59.44; this indicates FBMKLCI is slightly bullish biased for short-term.

STC %K further increased to 93.42 and the %D also increased to 79.85. This indicates FBMKLCI is bullish biased for short-term.

The MACD line had hooked up but has not touch the trigger line yet and the histogram is forming a rounding bottom; this indicates FBMKLCI is slightly bullish biased for short-term.

Summary
Most of the indicators above indicate FBMKLCI is bullish biased now. If the market volume can further increase to exceed 40 days VMA, we expect the up-trend will continue. Otherwise FBMKLCI will continue to go sideway between 1324.8 support level to 1347.61 resistance level for short term.

The nearest possible resistance levels for FBMKLCI 1340.8, 1347.61 and L1 dynamic resistance levels. The nearest possible support levels are 1340.8, 1334 and 1324.8. Please refer to the chart below for better understanding.