FBMKLCI - Technical Commentary 30/06/10

Due to the overnight DJI plunged –268 points, FBMKLCI opened with –10.66 points gap down at 1309.18. It went as low as 1306 (-13.84) before recover to loss only 5.82 (-0.44%) points. It had broken down the EMA14 at about 1315 this morning and now the EMA14 is the resistance for FBMKLCI .
The overall market’s trend is considers as bearish biased today as there were 267 up counters and 343 down counters with the market total traded volume decreased by 24%% to 563 MIL shares. The market volume is below the 40 days VMA today; this means that many investors chose to stay sideline; in another word there is no selling pressure happen today.

Today’s FBMKLCI top 2 gainers components (only 2 gainers today) are UMW and RHBCAP. The top 5 lagging components are BAT, TANJONG, PPB, PETGAS and IOICORP.

FBMKLCI Technical Indicators
The INDEX stays below the Mid-Band with the Bollinger band contracted -16%; this means that although the index was downed but it is still considered as consolidation.

RSI decreases to 64.93; this indicates FBMKLCI is consolidation.

STC %K hooks down to 32.56 and the %D decreases to 61.27, this indicates FBMKLCI is bearish biased.

The MACD line had hooked down and the MACD histogram had formed a rounding top, this indicates FBMKLCI is bearish biased.

Summary
Most of the indicators indicate FBMKLCI is bearish biased but it is still considered as consolidation. The nearest possible resistance levels for FBMKLCI are EMA14 (1315) and the BBMB whereas the nearest possible support levels are 1309 (61.8% FR) and 1295 (50% FR). Please refer to the picture below.

FBMKLCI - Technical Commentary 29/06/10

The market sentiment in the morning was slightly bullish however the confident level started to drop at about 10am and most of the 2nd/3rd liners started to turn “RED”. FBMKLCI was able to close positive during the morning session. However the market sentiment turn bearish in the afternoon session and the selling was aggressive at one time. The CI went as low as 1315.82 (-9.72) before closed higher at 1319.84 (-5.7, -0.43%). The CL was support by the EMA14 and rebounded off its day low (see the picture below).

The overall market’s trend is considers as bearish today as there were 175 up counters and 514 down counters with the market total traded volume increased by 38.5%% to 714 MIL shares. The market volume is above the 40 days VMA; this means that investors are willing to buy at lower price; another word the selling pressure is moderate.

Today’s FBMKLCI top 5 gainers components are PETDAG, BAT, PETGAS, PLUS and TANJONG. The top 5 lagging components are GENTING, MISC, PPB, RHBCAP and SIME.

FBMKLCI Technical Indicators
The INDEX stays below the Mid-Band slightly with the Bollinger band contracted -12%; this indicates FBMKLCI is consolidation with bearish biased.

RSI decreases to 70.76; this indicates FBMKLCI is consolidation.

STC %K hooks down to 51.93 and the %D decreases to 71.39, this indicates FBMKLCI is bearish biased.

The MACD line had hooked down and the MACD histogram had formed a rounding top, this indicates FBMKLCI is bearish biased.

Summary
Most of the indicators indicate FBMKLCI is consolidation and bearish biased. The Asian bourses typically plunged from 1% to 4.27% except FBMKLCI downed only 0.4%. While writing this report (Malaysia Time 5.50pm), the European bourses typically plunged >2% across the boards. The global market had turned bearish and we need to trade with caution.
The nearest possible resistance levels for FBMKLCI are BBMB (1321) and 1350 whereas the nearest possible support levels are EMA14 (1315) and 1309. Please refer to the picture below.

Market Sentiment is negative !!!!

Early warning by 29-Jun (TUE, 14:30) afternoon session:

Since last week, most of Asia's major composites are below Bollinger Middle Band (BMB10) except KLCI, STI, and Seoul. BUT until this noon time, STI and Seoul failed to hold above BMB10 already. Shanghai is breaking a newer 12 months low... and more other indexes are on the south turn... the Asia market is dropping as much as 3% on Shanghai now....

For the past few trading days, we have observed that our KLSE market sentiment is more on the liquidation or cashing out from equity market although it is still holding above the BMB...

With this kind of negative sentiment, it is not recommended to take new positions or rather it is recommended to follow the trend, take whatever profits that you have, or cash out from the market first and stay out ...

The worry is if finally FBMKLCI could not sustain at 1312, the downside could be accelerated...

FBMKLCI - Technical Commentary 28/06/10

FBMKLCI continues to move sideway today and closed slightly negative at 1325.54 (-0.91, -0.07%). It is still supported by 1324.89, 76.4% FR support level. Although the CI moves sideway for a few days but it has not turn bearish yet. The market still uncertain and there is no clear direction at this moment.

The overall market’s trend is considers as slightly bearish today as there were 277 up counters and 340 down counters with the market total traded volume decreased by 5.8%% to 535 MIL shares. The market volume is below the 40 days VMA; this means that the investors are caution.

Today’s FBMKLCI top 5 gainers components are PETDAG, MISC, GENM, KLK and TENAGA. The top 5 lagging components are PPB, TANJONG, YTL, BJTOTO and AMMB.

FBMKLCI Technical Indicators
The INDEX still stays above the Mid-Band with the Bollinger band contracted -8%; this indicates FBMKLCI is consolidation.

RSI hooked up to 77.1; this indicates FBMKLCI is slightly bullish biased.

STC %K continues to move sideway to 74.67 and the %D moved sideway to 79.66, this indicates FBMKLCI is within bullish zone but consolidation.

The MACD line move sideway and the MACD histogram had started to form a rounding top, this signal FBMKLCI may start correction from here.

Summary
Most of the indicators indicate FBMKLCI is consolidation and its direction is uncertain. There is no fresh good or bad news to influence the local market. Although FBMKLCI is moving sideway for a few days but it is still considered within the bullish zone. We still need to be caution because Dow Jones, Nasdaq, S&P500, FTSE and Nikkei had turned bearish again.

Bullish sectors: construction
Sideway sectors: consumer, industrial products, trading and services, property, finance and plantation.
Bearish sectors: FBM Medaq and Technology

The nearest possible resistance levels for FBMKLCI are 1335 and 1350 whereas the nearest possible support levels are 1325 (76.4% FR), BBMB 1315 and 1309. There is not much changes on the FBMKLCI chart for today and last Friday 25/6/10.

FBMKLCI - Technical Commentary 25/06/10

FBMKLCI keeps moving sideway today and closed slightly positive at 1326.45 (+0.58, +0.04%). It was supported by 1324.89, 76.4% FR support level. Although the CI moves sideway for a few days but it has not turn bearish yet. The market still uncertain and there is no clear direction at this moment.

The overall market’s trend is considers as slightly bearish today as there were 251 up counters and 370 down counters with the market total traded volume decreased by 24%% to 568 MIL shares. The market volume is below the 40 days VMA; this means that the investors are caution.

Today’s FBMKLCI top 5 gainers components are HLBANK, BAT, YTL, TANJONG and PETDAG. The top 5 lagging components are BJTOTO, HLFG, MAS, SIME and GENTING.

FBMKLCI Technical Indicators
The INDEX still stays above the Mid-Band with the Bollinger band contracted -5%; this indicates FBMKLCI is consolidation.

RSI moved sideway to 70.12; this indicates FBMKLCI is consolidation.

STC %K move sideway to 78.24 and the %D moved sideway to 79.52, this indicates FBMKLCI is within bullish zone but consolidation.

The MACD histogram had started to form a rounding top, this signal FBMKLCI may start correction from here.

Summary
All the indicators indicate FBMKLCI is consolidation and its direction is uncertain. There is no fresh good or bad news to influence the market direction at this moment. Although FBMKLCI is moving sideway for a few days but it is still within the bullish zone. We still need to be caution because Dow Jones, Nasdaq, S&P500, FTSE and Nikkei had turned bearish again.
The nearest possible resistance levels for FBMKLCI are 1335 and 1350 whereas the nearest possible support levels are 1325 (76.4% FR), BBMB 1315 and 1309. Please review the chart below.

FBMKLCI - Technical Commentary 24/06/10

Today is another sideway day for FBMKLCI however the market sentiment slowly turned bearish for the 2nd and 3rd liners in the late afternoon. FBMKLCI gave up 3.83 points and closed at 1325.87. The CI still supported by the support level 1325 today and many 2nd and 3rd liners were bullish in the morning session but profit taking was happening in the afternoon session.

The overall market’s trend is considers as mixed today as there were 318 up counters and 332 down counters with the market total traded volume increased by 9.4 % to 749 MIL shares. The market volume is slightly above the 40 days VMA however the increase of volume with the stock prices dropping in the afternoon is not too healthy to the market. This indicates a moderate selling activity is going on especially during the last hour.

Today’s FBMKLCI top 5 gainers components are MISC, BJTOTO, IOICORP, PBBANK and GENM. The top 5 lagging components are PETDAG, BAT, TANJONG, DIGI and HLBANK.

FBMKLCI Technical Indicators
The INDEX still stays above the Mid-Band with the Bollinger band contracted -2%; this indicates FBMKLCI is consolidation.

RSI hooked down to 69.86; this indicates FBMKLCI is consolidation.

STC %K decreases to 76.81 and the %D increases to 85.37, this indicates FBMKLCI is within the bullish zone but it was under mild correction.

The MACD histogram had started to form a rounding top, this signal FBMKLCI may start correction from here.

Summary

All the indicators indicate FBMKLCI is consolidation however a moderate profit taking was started in the afternoon and many 2nd & 3rd liners were giving back the gain during the morning session. The candlestick of FBMKLCI was formed an inverted hammer; this indicates the investors were selling in the afternoon until the closing session.

The nearest possible resistance levels for FBMKLCI are 1335 and 1350 whereas the nearest possible support levels are 1325 and 1309. Please review the chart below.

FBMKLCI - Technical Commentary 23/06/10

Today is considered as sideway day for FBMKLCI however something is unusual and it was push up a few more points during the closing period to close at 1329.7 (+6.26, +0.47%). The CI was supported by the support level 1320 today and many 2nd and 3rd liners seem to start moving in the afternoon session. If the momentum able to sustain, we believe the market will head north again.
The overall market’s trend is considers as mixed today as there were 360 up counters and 275 down counters with the market total traded volume increased by 1.8 % to 685 MIL shares. The market volume is below 40 days but very to it.

Today’s FBMKLCI top 5 gainers components are BAT, DIGI, PETDAG, HLBANK and TANJONG. The top 5 lagging components are AMMB, PBBANK, GENM, TM and AXIATA.

FBMKLCI Technical Indicators
The INDEX still stays above the Mid-Band with the Bollinger band opened 5%; this indicates FBMKLCI is consolidate with bullish biased.

RSI hooked up slightly to 78.64; this indicates FBMKLCI is slightly bullish.

STC %K hooked up to 87.7 and the %D increases to 90.4, this indicates FBMKLCI is bullish biased.

The MACD line is growing upward and crosses the ZERO level, this indicates FBMKLCI is bullish biased.

Summary
All the indicators indicate FBMKLCI is bullish biased however the trend was built during the closing period. We notice a lot of 2nd and 3rd liners started to move in the late afternoon session. This move indicates the buyers had gained confident on the market. Further analysed the sectors performance, ACE market, Finance, construction, Trading and Services and Consumer index are trending up. The construction index even shoot above the left shoulder to avoid downtrend. All these bullish signals are pending to be confirmed for a next few days.
The nearest possible resistance levels for FBMKLCI are 1335 and 1350 whereas the nearest possible support levels are 1325 and 1320.

Counters to Watch for 24-Jun, THU

Counters to Watch for 24-Jun, THUR:

With Bullish Divergence Signals:
Allianz (chart below), Linear, RGB, Carotec, Basewell; (others refer to WinChart);

With Higher Low Formation:
May consider for the trend trade. Typically with trend line and Bollinger Middle Band supports. Be reminded to set the trailing stop at or below BMB and trendline:

TENAGA, TITAN, RANHILL - see charts below;

HUBLINE&WA, XDL, XINQUAN, MSPORTS, EDEN, 3A, BIOSIS, FAJAR, GENP, SUNWAY, ZELAN etc... (refer to WinChart);

FBMKLCI - Technical Commentary 22/06/10

After 2 days of consecutive gain of more than 2.3%, FBMKLCI finally gave back 0.89% to close below the support level (1324) at 1323.44 (-11.85). As I mentioned yesterday, the STC indicates the CI is overheated and profit taking will happen any time. The profit taking is more aggressive toward the end of the trading session.

The overall market’s trend is considers as bearish today as there are 226 up counters and 434 down counters with the market total traded volume decreased by -27 % to 672 MIL shares. The volume is below 40 days; this means that some investors are selling but many are holding the positions, which they entered yesterday.

Today’s FBMKLCI top 2 gainers components (only 2 gainers today) are BJTOTO and TANJONG. The top 5 lagging components are TENAGA, DIGI, GENM, SIME and IOICORP.

FBMKLCI Technical Indicators
The INDEX still stays above the Mid-Band with the Bollinger band opened only 4%; this indicates FBMKLCI bullish trend is weaken due to profit taking today.

RSI reduced to 71.43; this indicates FBMKLCI bullish trend is weaken due to profit taking today.

STC %K is sideway at 75.09 and the %D increases to 88.51, this indicates FBMKLCI bullish trend is weaken due to profit taking.

The MACD line is growing upward and crosses the ZERO level however the MACD histogram seems to form a rounding top; this indicates FBMKLCI is under correction.

Summary
All the indicators indicate FBMKLCI is under profit taking and the bullish trend is weaken today. It is good to see it consolidates between 1320-1325 for the next few days before it resumes up-trend. Otherwise it may resume downtrend if it breaks below 1309.
The nearest possible resistance levels for FBMKLCI are  1325 and 1335. The nearest possible support levels are 1320 and 1309. The 50 days SMA also provides a temporary support to the CI. Please review the chart for better understanding.

FBMKLCI - Technical Commentary 21/06/10

Wow! The impact of the Yuan is influencing so much on the world economy. With the flexible Yuan, it is expected to boost the sales in Europe, Asian countries and American. Asian bourses surge >1% to 3% and European market typically up >1%. Mini Dow up 139 points (at local time 6.00 pm) and all the commodities like crude oil, sugar, gold, wheat, soybean and etc all Up! Up! Up!

This morning FKLI spot month futures opened with +17 points gap up at 1335.50. We were still wondering what are the catalysts behind that pushed the futures so high? Unexpectedly FBMKLCI also opened with +3.09 points gap up and it was trading with a gradually up-trend to close at 1335.29 (+17.6, +1.34%).

The overall market’s trend is considers as super bullish today as there are 591 up counters and 161 down counters with the market total traded volume increased by 71.3 % to 921 MIL shares. The volume is above 40 days VMA; this means that many investors had returned to the market. This is definitely a good news to KLSE with the trading volume increases.

Today’s FBMKLCI top 5 gainers components are PBBANK, CIMB, HLFG, IOICORP and SIME. The top 4 lagging components are TENAGA, YTL, BJTOTO and UMW.

FBMKLCI Technical Indicators
The INDEX stays above the Mid-Band with the Bollinger band opened 63%; this indicates FBMKLCI is very bullish.

RSI flat at 79.72; this indicates FBMKLCI is bullish biased.

STC %K is sideway at 99.96 and the %D increases to 89.31, this indicates FBMKLCI is very bullish but it also indicates CI near overbought.

The MACD line is growing upward and crosses the ZERO level. The MACD histogram grows further; this indicates FBMKLCI is very bullish.

The EMA 14/21/31 lines are very close to each other and pending to form a golden cross. It also means that FBMKLCI almost come out from the bear trend.

Summary

All the indicators indicate FBMKLCI is very bullish and with the trading volume exceeded 40 days VMA, we believe it will shift to the bull trend any time from now.

However STC indicates FBMKLCI is overheated and profit taking may happen any time soon. The nearest possible resistance level for FBMKLCI is 1350 and the nearest possible support level is 1325 and 1302. Please click on the chart below for better understanding.

Counters to Watch 22-Jun, TUE

There are two major groups of analysis:

(1) Counters that may have rallied once and in correction mode, now should monitors for their respective higher low formation with estimated support around the dynamic Bollinger Middle Band (BMB) as for the next entry point; however, should the formation failed below the BMB, then should put the trailing stop cutloss short practice at or below dynamic BMB;

In fact many counters that we had mentioned throughout our blog here for the last TWO weeks are almost in this group of analyst now; So for those investors who missed this recent rally since TWO weeks ago, may follow those rallied counters like EDEN and observing for the higher low formation and imagine, what if, those counters may perform like the IRCB counter today (typical rally after correction well supported by the BMB, higher low, as illustrated in the chart below);

Other counters to watch: EDEN, AEM, ZELAN, Ranhill, Gpacket & -WA, Xinquan, XDL, Fajar, Daya, Hubline & -WA, etc....

(2) Counters had formed the Bullish Divergence or Double Bottom but have not rally since last TWO weeks are the next counters to watch along the way; the illustration is like the RGB counter as show in the chart below;

Other counters to watch are: RGB, HWGB, LCL, Magna, DBE, Mulpha, Aglobal, Leweko, Harvest, Sumatec, Scomimr, M3Tech, etc...
(Note: This group responded slower to market, and quite dominated by penny counters, higher risk).

OTHER COUNTERS TO WATCH:
CSCSTEL, DIALOG, HAIO, AIRASIA, MEASAT, DNP, E&O, KURASIA, IGB;

We plant the durian trees at the right timing

We plant the durian trees in the right timing, now we are waiting for them to bear fruits. Come on! please come to join us. We are not selfish, we are willing to share. Let's do it together. I hope you are not selfish also, please forward the link of this site to all your friends and relatives. http://klsestockstips.blogspot.com/

Please check our past posting:
18/6/10 Bullish Divergence is a reliable reversal signal
17/6/10 Counters to watch.........
17/6/10 Petra surge >10% at 10AM
15/6/10 Counters to watch
14/6/10 Counters to watch
9/6/10  Counters to Watch with ALERT!!!

FBMKLCI - Technical Commentary 18/06/10

Today FBMKLCI up surprisingly especially during the closing period. It was slightly stays above the 100 days MA yesterday. After broke out 1309 FIBO resistance level, it went as high as 1313 however the momentum unsustainable as profit taking started at about 10am until early afternoon session. It was picked up again in the late afternoon and further pushed above 50 days MA during the closing to close at 1317.69 (+13.22, +1.01%). However we found that the heavy weighted CI component TENAGA surged 5% during the closing, this could be the main reason to help the CI to close above 1% today. If TENAGA able to stay above RM8.80 and the rest will follow on next Monday, we really believe that the CI can rise further.

The overall market’s trend is considers as bullish today as there are 416 up counters and 193 down counters with the market total traded volume increased by 4.1 % to 537 MIL shares. The volume is considered low as it still below 40 days VMA.

Today’s FBMKLCI top 5 gainers components are TENAGA, GENTING, PETDAG, YTLPOWR and DIGI. MMCCORP is the only loser for today.

FBMKLCI Technical Indicators
The INDEX stays above the Mid-Band with the Bollinger band opened 56%; this indicates FBMKLCI is bullish biased.

RSI flat at 79.29; this indicates FBMKLCI is bullish biased.

STC %K increased to 100 and the %D decreased slightly to 84.54, this indicates FBMKLCI is bullish but it also indicates CI close to overbought.

The MACD line is growing upward and close to the ZERO level and the histogram hooked up further, this indicates FBMKLCI is bullish.

Summary
All the indicators indicate FBMKLCI is bullish however the low volume is a question mark for the CI to grow further. With the CI stays above the 50 days MA and the BB opened 56% above the BBMB; potentially FBMKLCI will rise further.
The nearest possible resistance level for FBMKLCI is 1320 to 1324. The nearest possible support level is 1309 and 1290. Please click on the chart below for better understanding.

Bullish Divergence is a reliable reversal signal

We recommended a few counters with bullish divergence signal on 9/6/10, out of which 50% of them had shown a good result. The rest have not run but we believe their turn will come. Those counters with good profit are Petra, Eden, TSM and Redtone (just started today). If you wish to know what is bullish divergence or how to spot them please attend our next training class on 3/7/10 to be announced soon. Below are 2 examples of bullish divergence counters that can make you richer. Please click to check them (Petra and TSM) out yourself.

Short commentary on FBMKLCI 17/6/10

FBMKLCI is sideway today and not much changes from yesterday. It closed marginally higher at 1304.47 (+1.34, +0.1%). The overall market’s trend is considers as mixed today as there are 296 up counters and 277 down counters with the market total traded volume decreased to 516 MIL shares. The volume still below 40 days VMA but this is considered okay during market consolidation.

Today’s FBMKLCI top 5 gainers components are HLBANK, HLFG, AMMB, TANJONG and MMCCORP. The top 5 lagging components are GENTING, PETDAG, BJTOTO, PBBANK and CIMB.

Summary
Most of the indicators indicate FBMKLCI is consolidation with slightly bullish biased. The nearest possible resistance level for FBMKLCI is 1308 and 1320. The nearest possible support level is 1302 and 1290.

Counters to Watch....

Since last week, we had mentioned many counters are in reversal standby positions. And this week, we saw many of them already took off from reversal low, like: TSM, EDEN, PETRA, Xinquan, ...etc.

Some others almost there and worth to monitor are: 3A, Zelan, Ranhill, Kurasia, KNM, Perisai, Ijmland, Ijmland-wa, AEM... etc.
Please refer 9-Jun, 14-Jun, and 15-Jun counters to watch commentary....

Additional counters to watch: XDL, Msports, Gpacket & WA, POS, Hubline & WA, Keyasic, ...

Petra surge >10% at 10am

GREAT JOB! PETRA IS ONE OF OUR RECOMMENDED COUNTERS ON 14/6. IF YOU WISH TO EARN SOME POCKET MONEY OR SIDE INCOME, PLEASE LOGIN TO VK'S BLOG REGULARLY.

FBMKLCI - Technical Commentary 16/06/10

Due to overnight DJI jumped +213 points, FBMKLCI opened with +4.77 points gap up at 1303.14. It continued to trend up and went as high as 1312.10 (+13.72). However profit taking on the heavy weight CI components toward the afternoon session and it retreated back to the opening level at 1303.13. Nevertheless it still closed above 1300 level for the 1st time since 20/5/10.

The overall market’s trend is considers as bullish today as there are 494 up counters and 174 down counters with the market total traded volume increased by 29.5 % to 662 MIL shares. The volume still below 40 days VMA but it is getting closer.

Today’s FBMKLCI top 5 gainers components are GENTING, GENM, PETDAG, YTLPOWR and HLFG. The top 5 lagging components are MMCCORP, YTL, BAT, TM and MAYBANK.

FBMKLCI Technical Indicators
The INDEX stays above the Mid-Band with the Bollinger band opened 10%, this indicates FBMKLCI is slightly bullish biased.

RSI increases to 79.54; this indicates FBMKLCI is bullish biased.

STC %K decreased to 72.99 and the %D decreased slightly to 78.7, this indicates FBMKLCI is still bullish but the strength is weaken.

The MACD line is growing upward and crosses the trigger line but the histogram seems to form a rounding top. This indicates FBMKLCI may goes sideway.

Summary

Most of the indicators indicate FBMKLCI is bullish biased but the trend is weak. It may correct slightly or consolidation for short term. It broke out 1302 and 1308 resistance levels in the morning but profit taking sent the CI below 1308 in the afternoon. However the game for the 2nd and 3rd liners is not over yet if the CI maintains sideway or slightly lower. The good news is the trading volume increases 29.5% today. This means that some investors had return to the market even though the World Cup is getting hot.

The nearest possible resistance level for FBMKLCI is 1308 and 1320. The nearest possible support level is 1302 and 1290. Please click on the chart below for better understanding.

Counters to Watch

Counters to watch for 16-Jun, Wed:
Having Xinquan ticks off the initial uptrend, Msports and XDL are also coming along. Watch out for Huaan too, as they are all the sino-group.







Prospective non-KLCI valued counters: Faber, KPJ, Ahealth, Analab, Adventa, Supermx, Topglove, Kossan, Latexx, Yeelee, Haio, Spritzr, Mamee, HSL, CMSB, Ijmland, WCT, Tchong, KLCCP, Suncity, Sunway, SPsetia, IGB, Mahsing, TAGB, Bstead, Kseng, CSCSTEL, Unisem, Gtronic, Eng, MPI, Notion, JCY, Tchong, QSR, Waseong, Sapcres, MPHB, BJcorp, Cscenic, ...

Prospective GLC linked non-KLCI Counters: UEMland, WCT, Ranhill, Gamuda, IJM, Kencana, Faber, CMSB, Bstead, Sapcres, MMCCorp, DRBHcom, Affin, MBSB, TGoffs, Muhibah, Zelan, E&O, AZRB, BRDB, MRCB, KUB, KFima, Petra, Proton, ...

FBMKLCI - Technical Commentary 15/06/10

A slow but very steady day for FBMKLCI to finish above 1297 resistance level to close at 1298.37 (+1.21. +0.09%). It is still consider as sideway today. The overall market’s trend is considers as mixed today as there are 296 up counters and 291 down counters with the market total traded volume slightly increased by 1.91 % to 511 MIL shares. The market’s volume is considered low as it is traded below 40 days volume moving average.

Today’s FBMKLCI top 5 gainers components are GENTING, BJTOTO, MAXIS, TM and HLFG. The top 5 lagging components are MMCCORP, NESTLE, PETDANG, KLK and IOICORP.

FBMKLCI Technical Indicators
The INDEX stays above the Mid-Band with the Bollinger band opened 7%; for the first time since 13/5/10. This indicates FBMKLCI is considered as sideway with slightly bullish biased.

RSI increases to 61.37; this indicates FBMKLCI is slightly bullish biased.

STC %K increased to 85.8 and the %D decreased slightly to 83.73, this indicates FBMKLCI is bullish biased.

The MACD line is growing upward and crosses the trigger line but it stays below the ZERO level. The histogram had grown slightly higher to avoid the rounding top. This indicates FBMKLCI is slightly bullish biased.

Summary
Most of the indicators indicate FBMKLCI is slightly bullish biased. The Bollinger Band had opened upward above the BBMB for the 1st time since 13/5/10. If there is no bad news around the world, FBMKLCI should be moving upward toward 1308-1309 resistance levels. We found that many 2nd liners like YEELEE, KPJ, KSENG, SEG and etc had started to move up. Most of the sectors like construction, consumer, property, Industrial Products, Trading & Services and Technology had formed a higher low. There is a chance for the market to rebound further in short term even though the World Cup had started. However we predict the up trend will be very slow due to lack of volume support.
The nearest possible resistance level for FBMKLCI is 1308 and the nearest possible support level are 1290 and 1284. Please click on the chart below for better understanding.

FKLI - abnormal trading this morning

This is a 5 mins chart on FKLI spot month. Please click to enlarge.

Counters to Watch:

Should our FBMKLCI is on the up swing, then the following counters could be considered into your watch list:







Other counters to consider (please refer to Winchart):
Konsort, Dialog, Sapcres, Petra, Ranhill, Cscenic, 3A, Bstead, Haio, KPJ, Msniaga, Notion, Unisem, Gtronic;

FBMKLCI - Technical Commentary 14/06/10

The global equities are bullish today however FBMKLCI was consider as sideway but closed positively at 1297.16 (+2.49, +0.19%). It was resisted by the 100 days MA and the FIBO at 1297.

The overall market’s trend is considers as slightly bullish biased today as there are 302 up counters and 242 down counters with the market total traded volume slightly increased by 0.1 % to 502 MIL shares. The market’s volume is below 40 days volume moving average and this indicates the investors especially the institutional funds are caution.

Today’s FBMKLCI top 5 gainers components are MMCCORP, YTL, PLUS, PPB and IOICORP. The top 5 lagging components are CIMB, DIGI, AMMB and NESTLE.

FBMKLCI Technical Indicators
The INDEX stays above the Mid-Band with the Bollinger band getting narrower by 24%; this indicates FBMKLCI is considered as sideway.

RSI increases to 54.79; this indicates FBMKLCI is slightly bullish biased.

STC %K increased to 82.15 and the %D increased slightly to 84.07, this indicates FBMKLCI is bullish biased.

The MACD line slightly hooks up again and crosses the trigger line but it stays below the ZERO level. The histogram seems to grow slightly higher to avoid the rounding top. This indicates FBMKLCI is slightly bullish biased.

Summary
Most of the indicators indicate FBMKLCI is sideway with slightly bullish biased. The Bollinger Band is very narrow and it ready to open for a new trend. We found that many stocks seem to form a higher low or rebounded from a double bottom. There is a chance for the market to rebound in short term even though the World Cup had started.
The nearest possible resistance level for FBMKLCI is 1308 and the nearest possible support level is 1290. Please click on the chart below for better understanding.

FBMKLCI - Technical Commentary 11/06/10

Due to overnight DJI surged +273 points, FBMKLCI opened high at 1298.51 (+7.2) but closing low at 1294.67 (+3.36, +0.26%) due lack of trading volume support. The index went as high as 1302.07 (+10.76) but it unable sustain and started to drop from the peak in the morning. The chart of FBMKLCI formed a long shadow with a RED body candlestick (shooting star); which indicates the rebound is weak and likely it will fall or consolidates on next Monday.

The overall market’s trend is considers as bullish biased today as there are 380 up counters and 193 down counters with the market total traded volume decreased by 31.6 % to 501 MIL shares. The market’s volume is below 40 days volume moving average and this indicates the investors especially the institutional funds are caution.

Today’s FBMKLCI top 5 gainers components are AXIATA, PETDAG, MISC, PPB and GENM. The top 5 lagging components are MMCCORP, YTLPOWR, AMMB, TM and UMW.


FBMKLCI Technical Indicators
The INDEX stays above the Mid-Band with the Bollinger band contracted -40%; this indicates although FBMKLCI went up 3.36 points but it still consider as sideway.


RSI increases slightly to 46.69; this indicates FBMKLCI is considers as consolation.


STC %K decreased to 75.75 and the %D decreased slightly to 83.83, this indicates FBMKLCI is still bullish biased but it is weaken.


The MACD line slightly hooks up again and crosses the trigger line but it stays below the ZERO level. The histogram seems to form a rounding top if the index still goes sideway in next few days. This indicates FBMKLCI is still considers as consolation.


Summary
Most of the indicators indicate FBMKLCI is under consolidation above the BBMB. The World Cup is just around the corner and we expect the trading volume will be getting lower soon. The index surged up this morning but it was resisted by the 100 days moving average. This means that the 100 days MA is a strong resistance for FBMKLCI at this moment. It retreated from opening high and formed a shooting star, this means that the rebound is weak.
The nearest possible resistance levels for FBMKLCI are MA100 (1302) and 1320. The nearest possible support levels are 1290, 1284 and 1269. Please click on the chart below for better understanding.

FBMKLCI - Technical Commentary 10/06/10

There is no surprise in the 10th Malaysia Plan that launched by our PM in the morning 1030am to 1pm. The market was slightly bullish in the morning but it was cooling down in the afternoon session after the launching of the 10th Malaysia Plan. FBMKLCI was traded in sideway and closed at 1291.31 (+1.23, +0.1%).

The overall market’s trend is considers as mixed today as there are 261 up counters and 280 down counters with the market total traded volume increased by 16.4 % to 733 MIL shares however majority of the volumes are contributed by a single counter. The market’s volume is below 40 days volume moving average.

Today’s FBMKLCI top 5 gainers components are MMCCORP, GENTING, TANJONG, PETGAS and RHBCAP. The top 5 lagging components are GENM, AXIATA, MAXIS, BJTOTO and UMW.

FBMKLCI Technical Indicators

The INDEX stays above the Mid-Band with the Bollinger band contracted -15%; this indicates FBMKLCI is consolation.

RSI increases slightly to 43.78; this indicates FBMKLCI is considers as consolation.

STC %K increased to 88.05 and the %D decreased slightly to 83.69, this indicates FBMKLCI is bullish biased.

The MACD line slightly hooks up and crosses the trigger line but it stays below the ZERO level. The histogram seems to form a rounding top if the index still goes sideway in next few days. This indicates FBMKLCI is consolation.

Summary
Most of the indicators indicate FBMKLCI is under consolidation above the BBMB. The World Cup is just around the corner and we expect the trading volume will be getting lower soon. The nearest possible resistance levels for FBMKLCI are EMA14 (1290), 1296 and 1309. The nearest possible support levels are 1284, BBMB, 1269. Please click on the chart below for better understanding.

Counter to watch - CMSB

Latest update: Stocks and FKLI started to cool down in the noon session after the launching of the 10th Malaysia plan. The market lack of support ahead of the World Cup which will kick off this coming Friday. Apparently the volume at this stage (3:37pm) has >530 million shares but Talam alone has contributed 237 million shares exchange. We advice to trade with caution or stay sideline. Please check our trading strategy located on the right hand side timely.
=======================================================

Please take note that the 10th Malaysia Plan will be launched by our PM today. Some of the GLC companies like UEMLand, MRCB, CMSB, Gamuda......etc may be awarded some big projects. CMSB, HSL, Coastal....are located in East Malaysia. Below is the chart of CMSB....click to expand.

Counters to Watch with ALERT!!!

When the market is dull with low volume, being a technical analysis individual should spend more time on the chart to spot or monitor for possible reversal signal in counters. Particularly at this moment, Bullish Divergence identification would help us to monitor for the next possible reversal of counters. I mean price vs MACD divergence.

Of course at this juncture of market uncertainty, our technical analysis is vulnerable to the market sentiment. Should our KLCI could stay above the Bollinger Middle Band (BMB) and supported from that dynamic level, AND regional markets sentiment is not getting worse than now, then those counters in our KLSE with bullish divergence may have their doors open for rally. For counters that had rallied within these few days, monitor for the higher-low as the next possible entry point. Of course, the risk management particularly individual's cut loss policy MUST be firmly practice to preserve capital from unexpected scenario that may cause KLCI to dip. At any point in time, the BMB level could be treated as immediate cut loss point in most of the cases.

We have observed some counters are having their early stage of bullish divergence technical position BUT is yet to be confirmed by the higher-low position in the reversal trending up direction. The following are some examples of such counters: Daya, E&O, Redtone, HWGB, DBE, EDEN, Ranhill, TSM, Petra, Zelan...etc.

ALERT!!! Should our FBMKLCI turn below Bollinger Middle Band, it is suggested to abort the position respectively, because it is not hard to notice that most of these counters are very vulnerable to our KLCI sentiment.

Some sample charts below are for reference:

Technical Commentary on FBMKLCI 09-Jun-10, Wed.

DJI dipped to the recent lowest low at 9757 and rebounded to close at 9940, that's up by +123 points. IF that low is going to be the lowest low in the recent downtrend, then DJI may form a bullish divergene from yesterday onward. However, should DJI were to break below this low (9757), then the bullish divergence is nullified and the lower than that low is awaiting ahead of us.

With DJI up +123 pints, FBMKLCI is encouraged to open high above EMA14 and finally closed on the ema14 level, that's 1290 up by merely +1.90. The overall market’s trend is considered as side way today as there are 344 up counters and 266 down counters with the market total traded volume is increased by 20% to 630 MIL shares but unfortunately still below the expected VMA of 780mil shares.

Today’s FBMKLCI top 5 contributing components are GENM, MAXIS, TENAGA, AXIATA, and GENTING. The top 5 lagging components are MMCCORP, IOICORP, RHBCAP, MAYBANK, and PETDAG.

FBMKLCI Technical Indicators

The KLCI stays above the Bollinger Middle Band (1281) with the Bollinger band expanded 4%; this indicates FBMKLCI still considers as consolidation with slightly up swing.

RSI goes side way to 37.21, this indicates FBMKLCI is considered as consolidation.

STC %K hooks up to 85.77 and the %D increases to 85.12, this indicates FBMKLCI is bullish biased.

MOM has increased higher above zero level, this indicates momentum of participation is increased.

The MACD line is ticking up and further crossing the trigger line but it still stays below the ZERO level. This indicates FBMKLCI is slightly bullish but still vulnarable to market sentiment.

Summary
Most of the indicators indicate FBMKLCI is still under consolidation above the Bollinger Middle Band. FBMKLCI also staying on the EMA14 level 1290 now. The nearest possible resistance levels for FBMKLCI are 1290 (EMA14), 1296, 1300, and 1309. The nearest possible support levels are 1284, BMB, and 1269.

Please click on the charts below for better visual understanding.

Stocks are safer than bonds, fund manager says

The following information is quoted from an article: "Stocks are safer than bonds, fund manager says" By Chuck Jaffe, MarketWatch, May 23, 2010, 12:01 p.m. EDT

“Quote”

Chris Davis: Investors should be worried about bond bubble

..... "The only real bubble in the world is bonds," Davis said, at the CFA Institute annual meeting. "When you look out over a 10-year period, people are going to get killed." .......... Davis did not predict an immediate implosion in the bond market -- he said it might hold up well for up to two years -- but he said he believes a fall is inevitable .......... "When you have deficits this high and rates this low, something has to give," he said, "and I don't think you can look at this and think the deficits are going to give any time soon." .....Stocks as safe haven

..... Davis urged looking at the "earnings yield," which goes beyond the dividend payout to include what the business itself keeps .......... he said that investing in bonds when the government is so deep in the financial hole is much riskier than buying a stock like Nestle, "which has a 7.5% earnings yield, where it is reinvesting half of that money in the business and pays the other half to you in dividends." .......... corporate yields tend to adjust automatically to inflation, through the price increases that big companies can pass along to customers, whereas bond yields lose ground if inflation returns to the market .....

“Unquote”

Click on the following link to read more detail on this article:
http://www.marketwatch.com/story/stocks-are-safer-than-bonds-manager-says-2010-05-23