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.
