Technical Commentary 11/5/10

With respond to the European markets (typically up 5% to 9%) and overnight DJI up 404 points, FMBKLCI opened flat at 1333.19 (-0.78) however it went as high as 1341.41 (+7.44) to close the gap which created on 4/5/10 within 30 mins. The index then moved sideway for about 2.5 hours before profit taking started at about 12pm and the afternoon session. It then regained some strength at about 3:30pm and finally closed at 1340.72 (+6.75, +0.51%). We saw a slightly bullish strength on the index counters but most of the sectors are still in bearish zone. Many lower liners are giving up the gain today especially during the afternoon session.

There are 302 up counters and 399 down counters with the market total traded volume decreased by 3% to 781 MIL shares. The volume is below the 40 days VMA of 930 MIL shares; this means that the investors are still caution.

Today’s FBMKLCI top 5 gainers components are GENTING, GENM, UMW, PETDAG and SIME. The top 3 lagging components (only 3 losers today) are YTL, BAT and MMCCORP.

FBMKLCI Technical Indicators
The INDEX crosses the Mid-Band with the Bollinger band narrow to 0%; this indicates FBMKLC is slightly bullish to sideway bias for short-term.

RSI slightly decreases to 54.49; this indicates FBMKLCI is sideway biased for short-term.

STC %K increases to 73.17 and the %D increases to 53.11, this indicates FBMKLCI is bullish biased for short-term.

The MACD line continues to hook up a little and the histogram seem to turn rounding bottom soon; this indicates FBMKLCI is sideway to bullish biased for short-term.

Summary
The indicators above are mixed for FBMKLCI but most of the indicators indicate FBMKLCI is sideway to slightly bullish biased for short-term. However if we analysed the overall market by sectors, we found that most of them still closed below the Mid-band. The market volume still closed below 40 days VMA, this means that many investors are sideline. The nearest possible resistance levels for FBMKLCI are 1342 and 1350. The nearest possible support levels are the BBMB, 1324.8 and the FIBO 1320.29. Please refer to the chart below for better understanding.