Technical Commentary 06/5/10

Today's market was considered as a small correction for FBMKLCL but a heavy correction for lower liners. FBMKLCI open lower at 1333.22 (-2.43) and then it rebounded slightly passed yesterday closing. It then traded as high as 1337.88 (+2.23) before closed lower at 1331.87 (-3.87, -0.87%). As you can see, even Unisem announced with a very good Q1 result and proposed bonus issue but it also cannot escape from the bearish market. There are 137 up counters and 644 down counters with the market total traded volume slightly increased by 4.4% to 899 MIL shares. The volume is slightly below the 40 days VMA of 919 MIL shares. With the bearish trend on the lower liners, the increase of market volume also means heavy selling on the penny stocks and lower liners.

Today’s FBMKLCI top 2 gainers components (only 2 gainers today) are PLUS and CIMB. The top 5 lagging components are TANJONG, BAT, GENTING, BJTOTO and RHBCAP.

FBMKLCI Technical Indicators
The INDEX stays BELOW the Mid-Band with the Bollinger band expanded 4%; this indicates FBMKLC is bearish biased for short term.

RSI decreases to 44.74; this indicates FBMKLCI is bearish biased for short-term.

STC %K had dipped below 30 (threshold) at 29.44 and the %D decreases to 59.61. This indicates FBMKLCI is bearish biased for short-term.

The MACD line continues to hook down and the histogram turns rounding top; this indicates FBMKLCI is bearish biased for short-term.

Summary
All the indicators above indicate FBMKLCI is bearish biased for short-term. The composite index look like a sideway market today but actually most of the penny stocks and lower liners are heavy corrected. The nearest possible resistance levels for FBMKLCI are 1334, the L2 dynamic trend line, the BBMB and 1340. The nearest possible support levels are 1324.8 and the FIBO 1320.29. Please refer to the chart below for better understanding.