Technical Commentary 04/05/10

Despite DJI up 143 points, our market does not follow. FBMKLCI opened positive at 1348.36 (+1.47) and went as high as 1349.92 (+3.03) before started to cool down at 9:30am. It slowly dipped lower and finally closed below yesterday closing at 1342.89 (-4.0, -0.30%). The index still considered as sideway but it is another correction day for the 2nd and 3rd liners. There are 175 up counters and 556 down counters with the market total traded volume slightly decreased by 0.5% to 767 MIL shares. The volume is below 40 days VMA; this means that the investors are more caution now.

Today’s FBMKLCI top 5 gainers components are MAYBANK, PLUS, BAT, KLK, and TM. The top 5 lagging components are GENM, SIME, GENTING, BJTOTO and TANJONG.

FBMKLCI Technical Indicators
The INDEX stays above the Mid-Band with the Bollinger band reduces from 18%
to -20%; this indicates FBMKLC bullish trend had been weakened and turn sideway biased.

RSI slightly increased to 57.01; this indicates FBMKLCI is turning sideway biased for short-term.

STC %K had decreased to 72.51 but the %D increases to 84.56. This indicates FBMKLCI bullish trend is weakened. This also means uptrend is not confirm. If the %K continue to dip below 70, FBMKLCI will continue to move sideway or correction.

The MACD line had hooked down again and the histogram could turn rounding top; this indicates FBMKLCI is sideway biased for short-term.

Summary
Most of the indicators above indicate FBMKLCI bullish trend is weakening and will continue to move sideway to even correction. The nearest possible resistance levels for FBMKLCI are 1349.92 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.