FBMKLCI - Technical Commentary 30/07/10

Although FBMKLCI pushed up last minute to close at 1360.92 (+2.51, +0.18) and recorded another new high, but most of the lower lines are having a big correction. The CI stands firm above 1350 now however our market still depends on the global market especially focusing on US GDP tonight. Any bad news will impact our market directly.

The overall market’s sentiment is considered as mixed today as there were 348 up counters and 378 down counters with the market total traded volume decreased -8% at 918 MIL shares. The trading volume is above 40 days VMA and it is sufficient to keep the market “HOT”.

Today’s FBMKLCI top 5 gaining components (CI gainers) are PETGAS, GENM, PLUS, BAT and GENTING. The top 5 lagging components (CI losers) are AXIATA, MAS, YTL, TM and CIMB.

The primary and secondary indicators

FBMKLCI candlestick stays above the BB10’s mid-band with the BB10 opened another 7% due the index UP another 2.5 points. It is well position above the EMA 14/21/31. This indicates the CI is bullish biased. The RSI is flat but the MACD continues to hook up, this indicates the index is bullish biased. The STC continues to stay above 90% and hit 100%, this indicates the CI is bullish and overbought.

Supports and Resistances

Most the indicators indicate FBMKLCI is bullish biased. The nearest possible resistance levels for FBMKLCI is 1390 (the left shoulder high on July 07) and 1425 whereas the nearest possible supports levels is BMB (10) and L1 trend line. If it further breaks down, the next support level will be 23.6% FR 1333. Please refer to the picture below.

FBMKLCI - Technical Commentary 29/07/10

Although FBMKLC only up +3.22 points and closed at1358.41 (+0.22%), it climbs steadily as most of the CI components are supported well except Petgas. Right now it stays above 1357, the previous high and also the resistance level. The CI futures gained +6.5 points to close at 1362.5, there is good chance for the CI to move higher tomorrow. At the time of writing, mini Dow Jones gains 49 points. If DJI closes positive tomorrow, it will definitely boost our market further.

The overall market’s sentiment is considered as slightly bullish today as there were 386 up counters and 345 down counters with the market total traded volume increased +18% at 999 MIL shares. The trading volume is above 40 days VMA and it is sufficient to keep the market “HOT”.

Today’s FBMKLCI top 5 gaining components (CI gainers) are AXIATA, PETDAG, DIGI, MAS and RHBCAP. The top 5 lagging components (CI losers) are PETGAS, PPB, SIME, KLK and AMMB.

The primary and secondary indicators
FBMKLCI candlestick stays above the BB10’s mid-band with the BB10 opened 18% due the index up another 3.22 points. It is well position above the EMA 14/21/31. This indicates the CI is bullish biased. RSI is flat but MACD continues to hook up, this indicates the index is bullish biased. The STC continues to stay above 90%, this indicates the CI is bullish.

Supports and Resistances
Most the indicators indicate FBMKLCI is bullish biased. The nearest possible resistance levels for FBMKLCI is 1390 (the left shoulder high on July 07) and 1425 whereas the nearest possible supports levels is BMB (10) and L1 trend line. If it further breaks down, the next support level will be 23.6% FR 1332. Please refer to the picture below.

After 5pm, Counter to watch for 30-Jul:









Other counters under analysis:
LCL: just formed bullish divergence;
YNHPROP: just break out symmetrical triangle with volume support;
NYLEX: attempting new high above 0.920;
POHKONG: attempting to break 0.400;

For high risk takers on high flyers with cut loss short policy ONLY:
TIMECOM, TIME, PLUS, DXN, TGOFFS, MRCB

NEGATIVE Counters:
GAMUDA: a bearish divergence formation was observed;

29-Jul 11:50AM Counters Update:
IRCB: a bullish harami cross indicates a bullish reversal;
SCOMI: around T7, T8 timing;
L&G: around T8 timing, higher low supported by the BMB10;
Kurasia: monitoring for the possible break up above 0.525-0.530;

Counter to watch 29-Jul-10
















Other counters to watch:
RSAWIT, KULIM, TWSPLNT, BTEAD, CEPAT, UNICO.

FBMKLCI - Technical Commentary 28/07/10

FBMKLCI was opened flat but getting stable after 11am supported by CIMB, GENTING, HLFG and RHBCAP. It was traded sideway above yesterday closing points and closed positive at 1355.19 (+2.95, +0.22%). It recorded a 2 1/2 years new closing hgh today. Although it rose only 3 points but it considers as bullish biased. The profit taking activity still going on but it is not serious.

The overall market’s sentiment is considered as bullish biased today as there were 445 up counters and 264 down counters with the market total traded volume increased +15.8% at 847 MIL shares. The trading volume is above 40 days VMA and it is sufficient to support any selling pressure.

Today’s FBMKLCI top 5 gaining components (CI gainers) are HLFG, GENTING, CIMB, MAS and RHBCAP. The top 5 lagging components (CI losers) are BJTOTO, SIME, YTLPOWR, PBBANK and TM.

The primary and secondary indicators
FBMKLCI candlestick stays above the BB10’s mid-band with the BB10 opened 11% due the index UP 2.96 points. It is well position above the EMA 14/21/31. This indicates the CI is bullish biased. RSI was flat at 79.36 but MACD continues to hook up, this indicates the index is bullish biased. The STC hooked up to 93, this indicates the CI is bullish.

Support and Resistance
Most the indicators indicate FBMKLCI is bullish biased. The nearest possible resistance levels for FBMKLCI is 1357 and 1425 whereas the nearest possible supports levels is BMB (10), L1 trend line and 1327 (FR 23.6%). Please refer to the picture that posted yesterday. There are not many changes from yesterday.

Counter to Watch 28-Jul-10

Other counters could be tuned into your radar:
RCECAP, SPSETIA-WB, GENS-C1 -- GENS-C7.

FBMKLCI - Technical Commentary 27/07/10

FBMKLCI was bullish at the 1st 20 minutes and it went as high as 1357.37 (+5.41) before profit taking started. It hits the resistance level 1357 which I mentioned yesterday, it was retreated at this level for the time being. It was then moves sideway and even dipped below 1350 support level before closed flat at 1352.23 (+0.41, +0.03%). It was considered as sideway and profits taking activity was going on today.
We expect the profit taking will continue in the next few days before we see a next run if the market sentiment still bullish.

The overall market’s trend is considered as mixed today as there were 308 up counters and 381 down counters with the market total traded volume decreased –14% at 731 MIL shares. The trading volume is above 40 days VMA and it is still sufficient to support the selling pressure.

Today’s FBMKLCI top 5 gaining components (CI gainers) are TANJONG, AXIATA, AMMB, MAS and YTLPOWR. The top 5 lagging components (CI losers) are CIMB, PLUS, MISC, PETGAS and GENM.

The primary and secondary indicators
FBMKLCI candlestick stays above the BB10’s mid-band with the BB10 opened only 1% due the index was flat. This indicates the CI was consolidation, however it was well supported by EMA13/21/31.
RSI hooked down slightly to 79.88 and MACD continues to hook up, this indicates the index still in bullish zone.
The STC hooked down to 82.91 but it still maintains above 70, it is still within bullish zone.

Summary
Most the indicators indicate FBMKLCI is consolidation with bullish biased. The CI and the lower liners will continue to face some profit taking in the next few days before we see another run however our market still depend on global market especially DJI. If the CI stays above 1350, there is a good chance for it to move higher after minor correction.
The nearest possible resistance levels for FBMKLCI is 1357 and 1425 whereas the nearest possible supports levels is L1 trend line and 1327 (FR 23.6%). Please refer to the picture that posted yesterday. There are not many changes from yesterday.

Counters to Watch 27-Jul-10

Should FBMKLCI could be sustained above 1350, the following counters could be under monitored:

Publish Post

FBMKLCI - Technical Commentary 26/07/10

Due to positive stress test on majority of the Europe banks, DJI jump 102 points on Friday. FBMKLCI open with +4.86 points gap up to jump across the 1350 resistance level and close at 1351.82 (+6.14, +0.46%). Although the big caps CI were supported, however most of 2nd and 3rd liners that rose last week, were under profit taking for T+3 and T+4. The buy rate was keep dropping until 37% at the closing. We hope that the correction for the lower liners is healthy and prepare for the next run. The CI now stays above 1350 level marginally, can it sustains above this level is questionable. Anyhow we still depend on Dow Jones and global market.

The overall market’s trend is considered as mixed today as there were 336 up counters and 355 down counters with the market total traded volume decreased –14.4% at 850 MIL shares. The trading volume is above 40 days VMA and it is sufficient to keep the market “HOT”.

Today’s FBMKLCI top 5 gaining components (CI gainers) are CIMB, KLK, PETDAG, DIGI and RHBCAP. The top 5 lagging components (CI losers) are BAT, TANJONG, UMW, MAXIS and IOICORP.

The primary and secondary indicators
FBMKLCI candlestick stays above the BB10’s mid-band with the BB10 opened 9% due the index up >6 points. It also well supported by the EMA 14/21/31, this is a bullish sign for the CI.
RSI rose to 81.57 and MACD hooked up again, another bullish signal for the CI. The STC maintains above 70, it is very bullish but reflected from 100%. This indicates CI components near over bought and due for correction soon.

Summary

Most the indicators indicate FBMKLCI is bullish biased. The index continues to form a higher low and this is an up-trend pattern. FBMKLCI continues to stay above L1 trend line today and there is a good chance for it to run some more. If it successfully breaks above 1357 resistance level, it will go up higher.

The nearest possible resistance levels for FBMKLCI is 1357 and 1425 whereas the nearest possible supports levels is L1 trend line and 1327 (FR 23.6%). Please refer to the picture below.

FBMKLCI - Technical Commentary 23/07/10

Due to better than expected earning result and better outlook from a few big cap companies, overnight DJI surged 201 points. FBMKLCI broke and stayed above previous high 1341 to close at 1345.68 (+9.63, +0.72%). The CI futures FKLI broke 2 years & 4 months new high at 1354 today. Can FBMKLCI break 1350 next week? Although there are profit taking today but the “bulls” seem to gain strength to offset the selling pressure. Anywhere there were 268 counters under correction today.

The overall market’s trend is considered as bullish today as there were 491 up counters and 268 down counters with the market total traded volume increased 13.8% at 993 MIL shares. The trading volume is above 40 days VMA and it is sufficient to keep the market “HOT”. We expect the rotational play and profit taking will continue on Monday.

Today’s FBMKLCI top 5 gaining components are MMCCORP, GENM, SIME, HLBANK and YTLPOWR. The top 4 lagging components are MAS, BJTOTO, BAT and TENAGA.

FBMKLCI Technical Indicators
Although FBMKLCI surge >9 points but Bollinger(10) has not open, it contracted 19% and indicates consolidation stage.

RSI increased to 72.58 and enter into the bullish zone; this indicates FBMKLCI is bullish biased.

STC %K increases to 100% and the %D increases to 85.78, this indicates FBMKLCI is bullish biased.

The MACD hooked up slightly; this indicates FBMKLCI is bullish biased.

The DMI, +D (green line) hooks up further and the –D (Red line) hooks down. This indicates FBMKLCI is bullish biased. If the yellow ADX line hooks up again, the bull will be a strong bull. Otherwise it is a weak bull.

Summary

Most the indicators indicate FBMKLCI is bullish biased. The index continues to form a higher low and this is an up-trend pattern. FBMKLCI just broke above L1 trend line today and there is a good chance for it to grow some more. If it successfully breaks above 1350-1357 resistance level, the next hurdles waiting there will be 1384 and 1438.

The nearest possible resistance levels for FBMKLCI is 1350-1357 whereas the nearest possible supports levels is BMB (10) and 1325 (FR 76.4%). Please refer to the picture below.

Microsoft 4th-quarter net income surges 48 percent

SEATTLE (AP) -- Microsoft Corp. said Thursday that its net income surged in the most recent quarter, the latest sign that businesses are again spending on technology.

Strong sales of Windows, particularly to Microsoft's corporate customers, and of Office 2010 helped boost results in the fiscal fourth quarter. Microsoft said it has sold more than 175 million licenses of the newest version, Windows 7, since it went on sale last year.

Big businesses stopped replacing aging computers, servers and software during the worst of the recession. Last quarter, the software maker said it saw signs that its corporate customers were starting to spend again.

For the April-June period, Microsoft's net income jumped 48 percent to $4.52 billion, or 51 cents per share, from $3.05 billion, or 34 cents per share, last year.

Please click the link for details http://finance.yahoo.com/news/Windows-7-sales-boost-apf-1274440096.html?x=0&sec=topStories&pos=main&asset=&ccode=

Source: Yahoo Finance

FBMKLCI - Technical Commentary 22/07/10

Profit taking! Profit taking! Yes, DJI downed -109 points and it is a good reason for the investors to lock some profit after the stocks had run for so many days. As I mentioned yesterday many stocks including the heavy weighted CI components are due for T+3,T+4 for today and tomorrow, there will be a profit taking. However taking a close look at the market, the high flyers continue to fly higher. The consumer sector continues to run and everyday have new stars appeared. The market not really bearish yet, profit taking is a healthy correction. FBMKLCI dropped -4.97 points and closed at 1336.05 (-0.37%). It manages to close above the Bollinger10 mid-band and the previous peak 1335.

The overall market’s trend is considered as mixed today as there were 318 up counters and 388 down counters with the market total traded volume flat at 872 MIL shares. The trading volume is above 40 days VMA and it is sufficient to keep the market “HOT”. We expect rotational play and profit taking will continue tomorrow.

Today’s FBMKLCI top 5 gaining components are DIGI, BJTOTO, HLFG, UMW and IOICORP. The top 5 lagging components are GENM, SIME, RHBCAP, MAS and KLK.

FBMKLCI Technical Indicators
FBMKLCI stays above the Bollinger Middle Band 10 (BMB10). The Bollinger Band 10 (BB10) contracted -22% due to correction; FBMKLCI is considered as consolidation.

RSI moves sideway to 67.87 (flat); this indicates FBMKLCI is consolidation.

STC %K decreases to 69.36% and the %D decreases slightly to 82.37, this indicates FBMKLCI is consolidation but not turn bearish yet.

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

Summary
Most the indicators indicate FBMKLCI is moving sideway with bearish biased. We foresee profit taking and rotational play will continue tomorrow. The sectors that haven’t run are Plantation, Mesdaq and Technology. You may want to get ready for these sectors. As CPO price had started to move up to above RM2500 per ton, plantation sector may be the next theme. The nearest possible resistance levels for FBMKLCI is 1341 and 1350 whereas the nearest possible supports levels is BMB (10) and 1325 (FR 76.4%). Please refer to the picture below.

FBMKLCI - Technical Commentary 21/07/10

FBKMKLCI was opened with a gap up at 1340.38 (+2.71) and stays positive for the whole sessions to close at 1341.02 (+3.35, +0.25%). It broke out 1341 resistance level this morning but closed at 1341 due to profit taking in the afternoon. The trading volume is cooling down today and many stocks are due for T+3 and T+4 for the next 1-3 days. We foresee some profit taking tomorrow and Friday on the lower liners as well as the heavy weighted CI components. We need to trade with caution if the volume continues to grow for the next few days and if it mainly contributed by the penny stocks. However when scanned through the top 20 gainers, most of them come from consumer sector like Lonbisc, Hwatai, F&N, GuanChong, Cocolnd, Dlady, Kheesan, OFI, Kawan, Apollo and etc. The construction 'Bluechip" Mudajaya even surged >10% today. I feel something is un-usual in the market, but I guess the local and may be some foreign investment funds are locking in the good fundamental stocks thses 2 days. You may want to look for a stock that have good fundamental with PE less than 10. Winchart GOLD is best choice to use for seaching the counters with any PE ratio your wanted to see.

The overall market’s trend is considered as bullish biased today as there were 442 up counters and 298 down counters with the market total traded volume decreased by 22% to 874 MIL shares. The trading volume is above 40 days VMA today. However the buy rate was dropped from 52% in the morning to 42% in the afternoon session. This means that many stocks had gave back the gain in the morning and some even turned ‘RED’ in the afternoon. We expect rotational play and profit taking process will continue.

Today’s FBMKLCI top 5 gaining components are TANJONG, KLK, RHBCAP, MMCCORP and AMMB. The top 5 lagging components are HLFG, HLBANK, PBBANK, YTLPOWR and MAXIS.

FBMKLCI Technical Indicators
FBMKLCI stays above the Bollinger Middle Band 10 (BMB10). The Bollinger Band 10 (BB10) is contracted another -14%; this means that FBMKLCI is considered as consolidation.

RSI increases to 67.61; this indicates FBMKLCI is bullish biased.

STC %K decreases slightly to 87.69% and the %D increases slightly to 86.54, this indicates FBMKLCI is consolidation with bullish biased.

The MACD hooked up slightly and the histogram seems to start a rounding top soon, at the mean time it indicates FBMKLCI is moving sideway.

Summary

Most the indicators indicate FBMKLCI is moving sideway but bullish biased. The nearest possible resistance levels for FBMKLCI is 1350 whereas the nearest possible supports levels is BMB (10) and 1325 (FR 76.4%). The other indicator; DMI is pending to turn bullish if the yellow ADX line hooks up from the bottom. Please refer to the picture below.

FBMKLCI - Technical Commentary 20/07/10

FBKMKLCI was opened with small gap up at 1334.53 (+1.18) and stays positive for the whole sessions to close at 1337.67 (+4.32, +0.32%). It broke above 1335 but still stays below 1341 resistance level. Today we saw the trading volume breaks above 1 billion shares for the 1st time since April’15th. This means that the retailers had started to buy on the penny stocks as you may notice many penny stocks less than RM1 are very active today. The index-linked counters are considered as consolidation but 17 out of 30 CI components are closed positive. We need to trade with caution if the volume continues to grow for the next few days and if it mainly contributed by the penny stocks.

The overall market’s trend is considered as bullish biased today as there were 466 up counters and 278 down counters with the market total traded volume increased by 32.7% to 1.12 BIL shares. However the buy rate was dropped from 52% in the morning to 47% in the afternoon session. This means that many stocks had gave back the gain in the morning and some even turned ‘RED’ in the afternoon. We expect rotational buy and rotational profit taking will take place soon, as there are many stocks are due for T+3 and T+4 in the next 1-3 days.

Today’s FBMKLCI top 5 gaining components are PPB, KLK, RHBCAP, GENM and GENTING. The top 5 lagging components are TM, AXIATA, BJTOTO, YTLPOWR and MMCCORP.

FBMKLCI Technical Indicators
FBMKLCI stays above the Bollinger Middle Band 10 (BMB10). The Bollinger Band 10 (BB10) is contracted another -16%; this means that FBMKLCI is consolidation.

RSI increases slightly to 61.27; this indicates FBMKLCI is slightly bullish biased.

STC %K increases to 88.51% and the %D decreases slightly to 85.52, this indicates FBMKLCI is consolidation with slightly bullish biased.

The MACD hooked up slightly and the histogram seems to start a rounding top soon, at the mean time it indicates FBMKLCI is moving sideway.

Summary
Most the indicators indicate FBMKLCI is moving sideway but slightly bullish biased. The nearest possible resistance levels for FBMKLCI is 1341 and 1350 whereas the nearest possible supports levels is 1325 (FR 76.4%). Please refer to the picture below.

FBMKLCI - Technical Commentary 19/07/10

FBKMKLCI was opened lower at 1333.92 and it went as low as 1327.98 (-8.67) at about 9:40am. The buyers started to come in at about 9:45am and FBMKLCI started to gain some strength; it narrowed the losses but traded sideway about 4-5 points below Friday’s closing before it closed higher at 1333.35 (-3.3, -0.25%). It was supported by the BMB10 and the EMA14 today. Our market was considered stronger than the regional market today even though DJI plunged badly. However our future trend is depends on the global market sentiment especially the Q2 earning report from US’s big cap companies. PBBANK will report its quarterly result this week, a positive better than expected financial result will further boost our market up trend especially on banking sector. On the other hand, a negative worst than expected result will help the bears to gain strength.

The overall market’s trend is considers as mixed today as there were 327 up counters and 324 down counters with the market total traded volume increased by 6.9% to 848 MIL shares. The market volume is above the 40 days VMA today; this is good sign that the investors are starting to collect a good stocks.

Today’s FBMKLCI top 5 gaining components are PETDAG, TANJONG, PLUS, YTL and BAT. The top 5 lagging components are PPB, AMMB, GENM, IOICORP and BJTOTO.

FBMKLCI Technical Indicators
FBMKLCI stays above the Bollinger Middle Band 10 (BMB10). The Bollinger Band 10 (BB10) is contracted to -2%; this means that FBMKLCI is consolidation.

RSI is moving sideway at 54.85; this indicates FBMKLCI is consolidation.

STC %K hooked down to 81.91% and the %D decreases slightly to 88.09, this indicates FBMKLCI is correction but still within the bullish zone.

The MACD is sideway and the histogram seems to start a rounding top soon, at the mean time it indicates FBMKLCI is moving sideway.

Summary
All the indicators indicate FBMKLCI is moving sideway. The CI was supported by the Bollinger10’s Mid-band and the EMA14 today. It was rebounded and the candlestick formed a small hammer shape, this indicates the buyers were collecting at the bottom. If DJI rebound tomorrow, our market should follow as the trading volume was increased today. If FBMKLCI is correction and rebounded from the L2 trend line, then a higher low is formed.
The nearest possible resistance levels for FBMKLCI is 1335, 1341 and 1350 whereas the nearest possible supports levels is 1325 (FR 76.4%). Please refer to the picture below.

FBMKLCI - Technical Commentary 16/07/10

FBKMKLCI was trading sideway for the whole session and closed at 1336.65 (+2.57, +0.19%). Although the INDEX is consolidation, but the overall market is bullish biased as many 2nd liners’ “blue chips” like SUPERMX, YEELEE, HUPSENG, DAIBOCI, TOMYPAK, KOSSAN, HELP, LMCEMENT and others were surging with good profit. This scenario makes me feel that the market is building up its base and may get ready for the next “bull-run”. Sometime you cannot just look at CI alone, there are many sectors are bullish today. Is this a short-term or mid-term bullish trend? It depends on global market sentiment especially the Q2 earning report from US’s big cap companies.

The overall market’s trend is considers as bullish biased today as there were 476 up counters and 206 down counters with the market total traded volume increased by 28% to 793 MIL shares. The market volume is above the 40 days VMA today; this is good sign that some investment funds are starting to collect a good stocks.

Today’s FBMKLCI top 5 gaining components are PETDAG, PETGAS, HLBANK, UMW and PPB. The top 5 lagging components are GENM, BJTOTO, MMCCORP, GENTING and AMMB.

FBMKLCI Technical Indicators
FBMKLCI stays above the Bollinger Middle Band 10 (BMB10). The Bollinger Band 10 (BB10) is open but reduces to 4%; this means that FBMKLCI is consolidation.

RSI is moving sideway at 56.53; this indicates FBMKLCI is consolidation.

STC %K increases slightly to 88.84% and the %D increases slightly to 92.24, this indicates FBMKLCI is slightly bullish biased.

The MACD line crosses the trigger line and the histogram stays above the ZERO, this indicates FBMKLCI is bullish biased.

Summary
All the indicators indicate FBMKLCI is moving sideway with slightly bullish biased. As I mentioned above, although the CI is consolidation, there are many 2nd liners are surging today. This is a good sign that many serious investors or investment funds are starting to lock in the good counters. There are still many good fundamental counters under their fair value and have not really move up yet.
The nearest possible resistance levels for FBMKLCI is 1341 and 1350 whereas the nearest possible supports levels is 1325 (FR 76.4%). Please refer to the picture below.

FBMKLCI - Technical Commentary 15/07/10

As we mentioned yesterday CI counters were overbought. FBMKLCI finally cannot stand the pressure after it had risen for 7 straight trading days; it closed at 1334.08 (-7.0, -0.52%) today. FBMKLCI stays below the 1335 level, which it broke out yesterday and right now 1335 is the resistance. Today is considered as healthy correction as the trading volume is lower than yesterday.

The overall market’s trend is considers as bearish biased today as there were 242 up counters and 390 down counters with the market total traded volume decreased by 22.7% to 619 MIL shares. The market volume is below the 40 days VMA today; this means that the investors are caution.

Today’s FBMKLCI top 5 gaining components are PETDAG, PETGAS, HLBANK, UMW and PPB. The top 5 lagging components are GENM, BJTOTO, MMCCORP, GENTING and AMMB.

FBMKLCI Technical Indicators
FBMKLCI stays above the Bollinger Middle Band 10 (BMB10). The Bollinger Band 10 (BB10) is open but reduces to 8%; this means that FBMKLCI under technical correction but still considered bullish biased.

RSI hooks down slightly at 55.39; this indicates FBMKLCI is under technical correction.

STC %K decreases to 83.44% and the %D decreases to 91.96, this indicates FBMKLCI under technical correction but still considered bullish biased.

The MACD line crosses the trigger line and the histogram crosses Zero, this indicates FBMKLCI is bullish biased.

Summary
All the indicators indicate FBMKLCI is having technical correction due to overbought but the bullish trend has not broken yet.
The nearest possible resistance levels for FBMKLCI is 1341 (yesterday high) and 1350 whereas the nearest possible supports levels is 1325 (FR 76.4%). Please refer to the picture below.

庫存降低‧需求殷切‧半導體成長勢頭保持

（吉隆坡）庫存降低、新產品推展、消費與個人電腦市場需求殷切；加上企業的資訊工藝開銷激漲，預計半導體業在今年上半年的活絡成長動能，將保持勢頭至下半年。


分析員預料2011年的成長或趨緩。


達證券對科技股保持“加碼”評估，惟會密切監督情況才會檢討評級，主要來自歐洲債務危機引發的需求緊縮。

該行強調“買進”馬太平洋（MPI, 3867, 主板科技組）及友力森（UNISEM, 5005, 主板科技組），目標價分別為8令吉及4令吉10仙。

“主要風險是緊縮貨幣政策提早或導致全球經濟復甦脫軌；馬幣比預期強勢；以及原料成本提高。”


根據半導體業協會（SIA）的數據顯示，全球晶片銷售在5月或持續攀升至247億令吉的創新記錄水平，比4月上揚4.5%，按年則激漲47.6%（4月彈升50.4%）。

這是2007年11月科技高峰以來的第二高銷售紀錄。

達證券相信，全球晶片銷售將達到SIA預測的2010年達28.4%成長至2905億美元。SIA把此成長歸功於個人電腦及手機的銷售持續增溫、企業對資訊工藝的需求殷切、汽車業及新興市場的需求亦回溫。


個人電腦銷售在今年預計增長20%，手機銷售按年上揚10至12%。新興市場如中國及印度駕馭成長。


根據SIA透露，半導體業對宏觀經濟敏感，這些因素雖不足以影響全球半導體銷售，但可能影響下半年銷售。


所有區域錄得按月成長，以美國居冠，激揚8.2%，亞太揚5%、歐洲增1.7%及日本起1.3%。


按年計，美國成長最突出，飆漲52.9%，亞太50.9%，歐洲和日本份別為43.8%及34.7%。


達證券表示，按年成長縮窄，反映需求正常化。根據過去季節性走勢顯示，未來的按年成長率將呆滯或微漲。


半導體訂單出貨率在5月份下滑至1.12倍，4月為1.13倍。已是連續第11個月維持在1倍以上水平（3個月平均波動），反映成長勢頭仍然完美。（1.12倍表示5月接獲112美元的訂單，出貨價值為100美元。）上述訂單創下2007年6月以來最高峰，而出貨率也寫下2008年5月以來的顛峰。


達證券相信訂單出貨率在今年下半年或跌破1倍，但並不表示半導體的萎縮或未來的出口將降低，相信出貨會迎頭趕上強勢的訂單水平，主要拜新業者的新增添產能所賜。

Source: Sinchew Finance 星洲日報／財經‧2010.07.14

FBMKLCI - Technical Commentary 14/07/10

Thanks to Intel’s Q2 financial result and Q3 projection was better than expected, the global market was surging today. FBMKLCI opened with gap up of 3.78 points at1336.65 and it was bullish throughout the sessions to close at 1341.08 (+8.21, +0.62%). FBMKLCI had broken out the previous high 1335 and manage to stay above it. Right now the investors’ confident level had improved as the trading volume was increased today. Although the CI counters near overbought today and we believe some levels of correction may happen any time after it was rising for 7 trading sessions. As long as a lower high (on the chart) is created after the correction, FBMKLCI may has a good chance the break 1350 provide there is no bad news in US or Europe in near term.

The overall market’s trend is considers as bullish today as there were 506 up counters and 194 down counters with the market total traded volume increased by 39.6% to 821 MIL shares. The market volume is above the 40 days VMA today; this means that the investors are more confident now after Intel posted a good Q2 result.

Today’s FBMKLCI top 5 gaining components are HLFG, SIME, PPB, AMMB and TENAGA. The top 3 lagging components are YTL, MISC and DIGI.

FBMKLCI Technical Indicators
FBMKLCI stays above the Bollinger Middle Band 10 (BMB10). The Bollinger Band 10 (BB10) had opened 27%; this means that FBMKLCI is bullish biased.

RSI hooks up again at 57.8; this indicates FBMKLCI is slightly bullish biased.

STC %K moves sideway to 98.15% and the %D increases to 92.1, this indicates FBMKLCI is bullish biased and also indicates CI counters is over bought.

The MACD line crosses the trigger line and the histogram crosses Zero, this indicates FBMKLCI is bullish biased.

Summary
All the indicators indicate FBMKLCI is bullish biased. However the STC indicates the CI counters near overbought and correction may happen any time from now. Nevertheless if the buying interest is continues tomorrow, the correction may delay.
The nearest possible resistance levels for FBMKLCI is 1350 whereas the nearest possible supports levels is 1335 and 1325 (FR 76.4%). Please refer to the picture below.

Intel posts biggest quarterly profit in a decade

SAN FRANCISCO (AP) -- Intel Corp. has booked its largest quarterly net income in a decade as the chipmaker benefits from a stronger computer market and more sophisticated factories.

Large corporations bought more computers that use Intel's most expensive chips, an encouraging sign for the economy that emerged from Intel's second-quarter numbers, reported Tuesday after the stock market closed. Corporations have been stingy on upgrading their workers' personal computers, a trend Intel is now seeing reverse. Intel gets most of its profit from the sale of chips that go into PCs.

Intel's results topped Wall Street's forecasts, and the company raised its guidance. Its shares rose more than 7 percent in extended trading.

Intel's net income was $2.89 billion, or 51 cents per share, in the quarter ended June 26. Analysts expected 43 cents per share. The last time Intel's quarterly net income topped $2.5 billion was in 2000 during the dot-com heyday, when Internet fever fueled spectacular computer sales.

In the year-ago period, Intel lost $398 million, or 7 cents per share, when it paid a $1.45 billion fine in Europe over antitrust violations.

Revenue was $10.77 billion in the latest period, above the $10.25 billion expected by analysts surveyed by Thomson Reuters.

Intel's third-quarter forecast was stronger than expected. It said it expects revenue of $11.20 billion to $12 billion. Analysts were projecting $10.92 billion.

Intel's profit forecast also got a lift. Intel now expects gross profit margin -- a key measure of a company's ability to control costs -- of 64 percent to 68 percent of revenue. Its previous forecast was for 62 percent to 66 percent.

Source: Yahoo Finance
http://finance.yahoo.com/news/Intel-posts-biggest-quarterly-apf-3311126180.html?x=0&sec=topStories&pos=2&asset=&ccode=

FBMKLCI - Technical Commentary 13/07/10

FBMKLCI was opened with gap up of 3.13 points at 1329.87 and it traded sideway above yesterday high before it pushed up another few more points to closed at 1332.87 (+6.13, 0.46%). The CI seems to be bullish biased now however the trading volume is a concern for FBMKLCI to sustain its uptrend. Right now it broke up the L1 trend line and looking to break the next hurdles at 1335 and 1350 resistance levels. At the time of writing, FKLI (KLCI futures) surged 10 points at 1338.5 and bidding at 1339 for the closing. If it is not manipulation, FBMKLCI will have a chance to move higher tomorrow. As we mentioned last week, there are many counters are pending to form a bullish divergence and if the market is bullish, those counters will surge higher. Today we saw some bullish divergence counters are moving up. They are SCOMIMR, SCOMI and GENM.

The overall market’s trend is considers as bullish today as there were 363 up counters and 283 down counters with the market total traded volume decreased by 5.9% to 574 MIL shares. The market volume is slightly below the 40 days VMA today; this means that the investors still caution about the current market rebound.

Today’s FBMKLCI top 5 gaining components are GENM, PLUS, DIGI, RHBCAP and MMCCORP. The top 3 lagging components are HLFG, TANJONG and BAT.

FBMKLCI Technical Indicators
FBMKLCI stays above the Bollinger Middle Band 10 (BMB10). The Bollinger Band 10 (BB10) had opened 12%; this means that FBMKLCI is bullish biased.

RSI hooks up again at 56.64; this indicates FBMKLCI is slightly bullish biased.

STC %K increases to 100% and the %D increases to 82.02, this indicates FBMKLCI
is bullish biased and also indicates CI counters is over bought.

Momentum hooks up above 0%, this indicates FBMKLCI is bullish biased.

The MACD line crosses the trigger line and the histogram crosses Zero, this indicates FBMKLCI is bullish biased.

Summary
All the indicators indicate FBMKLCI is bullish biased. However our market is depend on the performance of global market especially Dow Jones Industrial. Tomorrow (Wed morning) Intel is going to report its Q2 financial result. If its Q2 result and Q3 forecast are positive, I believe it will affect our local technology counters like UNISEM, ENG, NOTION, MPI, GTRONICS and etc. However if the Q3 forecast is below analysts forecast, then most likely those counters will move down or sideway.
The nearest possible resistance levels for FBMKLCI is 1335 and 1350 whereas the nearest possible supports levels are the L1 trend line and 1325 (FR 76.4%). Please refer to the picture below.

FBMKLCI - Technical Commentary 12/07/10

FBMKLCI was open slightly below last session at 1323.91 (-0.4) however it started to ramp up after 5 minutes and it went as high as 1331.74 (+7.43). The buy rate started to drop in the afternoon session due to profit taking and finally closed at 1326.74 (+2.43, +0.18%). The index had broken out the 1325 (FR 76.4%) resistance level and now 1325 will became the support level for FBMKLCI. The CI still considered as consolidation because the Bollinger10 is flat (open from –2% to 0%).

The overall market’s trend is considers as bullish today as there were 371 up counters and 265 down counters with the market total traded volume decreased by 8.1% to 610 MIL shares. The market volume is slightly below the 40 days VMA today; this means that the investors still caution about the current market rebound.

Today’s FBMKLCI top 5 gaining components are PPB, MAYBANK, AXIATA, PLUS and RHBCAP. The top 5 lagging components are GENTING, TANJONG, PETDAG, MAS, and BJTOTO.

FBMKLCI Technical Indicators
FBMKLCI stays above the Bollinger Middle Band 10 (BMB10). The Bollinger Band 10 (BB10) had opened slightly from -2% to 0%; this means that FBMKLCI is considered as consolidation.

RSI dropped below 50% at 44.43; this indicates FBMKLCI is in the neutral zone and slightly bearish biased.

STC %K increases to 86.62 and the %D increases to 67.6, this indicates FBMKLCI
is bullish biased.

Momentum is at 0%, this indicates FBMKLCI is considered as neutral.

The MACD is trending up slightly and the histogram had formed a rounding bottom; this indicates FBMKLCI is bullish biased.

Summary
The indicators for FBMKLCI are mixed, but the primary indicators like EMA and Bollinger10 indicate the index is consolidation with slightly bullish biased.
The nearest possible resistance levels for FBMKLCI is the L1 trend line and the previous 1335 whereas the nearest possible supports levels are 1325 (FR 76.4%) and 1309 (FR 61.8%). The Bollinger Mid band and the EMA14/21/31 also act as the support levels for FBMKLCI. Please refer to the picture below.

Week Ahead: Stocks Could See Bigger Earnings Season Pop

Second-quarter earnings season is likely to create a positive backdrop for stocks, at least temporarily. A handful of industrial, financial, transport and tech companies will set the early tone for the quarter in the coming week. The first Dow component to report is Alcoa, reporting after the market close Monday, along with railroad company CSX. Intel reports Tuesday, and Google and J.P. Morgan are Thursday. General Electric, Bank of America and Citigroup all release results Friday.

Stocks this past week advanced more than 5 percent, the best performance in a year, in part in anticipation that those earnings will be strong. But it's the market correction that started in late April that has made the focus on this quarter's earnings reports even more intense, as traders look to find signs from corporate America that the economy is not as weak as investors fear. In addition to earnings, there is a string of fresh economic reports, including retail sales and inflation data. The Treasury also plans to auction $69 billion in 3-year and 10-year notes and 30-year bonds next week.

Please click this link for more details
http://www.cnbc.com/id/38179434

Counters to Watch for MON 12-JUL:

We have observed many counters are forming or formed bullish divergence and some even followed with higher low patterns. Should our KLSE still could sustain the current momentum on the uptrend direction, then the following counters could be in your watch list to consider:















Other counters for more aggressive traders to consider BUT MUST prepare your trading plan to monitor closely are: KSENG, UNISEM, AIRASIA, JERNEH, UEMLAND, GAMUDA, FITTERS, 3A, TCHONG, FABER, TIME, TIMECOM, AXIATA, TITAN, ...

Divergence signal really help

You believe or not, divergence signal really help us to trade objectively. BULLSH divergence provides us an early entry points whereas BEARISH divergence will hint us to get out early. It really works most of the times. Please look at TITAN, see how much it surge after bullish divergence? It was at 1.10 when the bullish divergence was detected. Since then it went up by forming a higher low and the EMA 14/21/31 never ask you to get out. It closed 1.70 yesterday (Fri 9/7/10). It up 54% since 26/5, less than 2 months. Is it better than FD?

Divergence signal not only apply on individual stocks but also on indices. Look at Dow Jones this few days, it is rebounded for 3 days because of bullish divergence. Although we are not sure how much more it is going to rise but at least it had done for 3 days.

There are many many other counters going to form a BULLISH divergence pattern soon. If the market is going to maintain bullish, these counters will surge and generate a good income for you. I can find more than 20 of them now using our Winchart. If you wanted to know what are those counters and hoping to make some extra income, please come to join our next training on 18/7/10 (Sun) at YMCA, details to be published soon. Please click on the charts below to believe yourself.

FBMKLCI - Technical Commentary 09/07/10

FBMKLCI was traded sideway in the early morning however buying interest started to increase (buy rate increases) at about 11am. The KLCI futures (FKLI) started to surge at 10:45am and then follow up by FBMKLCI. It broke out the 1325 resistance level and went as high as 1327.27 (+11.24) before profit taking took place to close at 1324.31 (+8.28, +0.63%). The FR 76.4%, 1325 still maintains the resistance level for FBMKLCI at this moment. Despite the CI up +8.28 points but the Bollinger10 has not open yet, so it is still considers as technical rebound.

The overall market’s trend is considers as bullish today as there were 405 up counters and 238 down counters with the market total traded volume increased by 24.7% to 664 MIL shares. The market volume is slightly above the 40 days VMA today; this means that some aggressive investors’ had returned to the market.

Today’s FBMKLCI top 5 gaining components are PPB, PETGAS, AXIATA, MAS and HLFG. The top 5 lagging components are MMCCORP, GENTING, TANJONG, TM, and SIME.

FBMKLCI Technical Indicators
FBMKLCI stays above the Bollinger Middle Band 10 (BMB10). The Bollinger Band 10 (BB10) had reduced its contraction to -2% today due to technical rebound; this means that it is considered as technical rebound.

RSI moves sideway to 53.6; this indicates FBMKLCI is in the neutral zone and consolidation.

STC %K increases to 81.54 and the %D increases to 53.86, this indicates FBMKLCI
is bullish biased.

Momentum is trending up but slightly below the zero level, this indicates FBMKLCI is considered as neutral.

The MACD trending up slightly and the histogram had started the rounding bottom; this indicates FBMKLCI may have a chance to rebound further.

Summary
Most the indicators indicate FBMKLCI is having technical rebound but has not turn bullish yet. Once the Bollinger10 is opened and the index closed above the BMB, FBMKLCI will be considered as bullish trend. Right now the index was resisted by the 76.4% FR at 1325. Once this hurdle is cleared, it may reach 1335 or higher.

The nearest possible resistance levels for FBMKLCI is 1325 (FR 76.4%) and the L1 trend line whereas the nearest possible supports levels is BMB (1314) and 1309 (FR 61.8%). Please refer to the picture below.

FBMKLCI - Technical Commentary 08/07/10

Despite DJI surged +274 and most of the regional markets follow but FBMKLCI did not move up much, it traded sideway most of the sessions and closed positively at 1316.03 (+4.28, +0.33%). It manages to stay above the Bollinger10 mid-band now however the Bollinger10 has not open yet. This means that it will consolidate further until the Bollinger10 re-open to determine its direction.

The overall market’s trend is considers as slightly bullish today as there were 365 up counters and 242 down counters with the market total traded volume decreased by 1.3% to 532 MIL shares. The market volume is below the 40 days VMA today; this means that the investors’ confident level still low.

Today’s FBMKLCI top 5 gaining components are SIME, HLFG, PETDAG, PLUS and YTL. The top 5 lagging components are MMCCORP, IOICORP, MAXIS, MISC, and AXIATA.

FBMKLCI Technical Indicators
FBMKLCI stays above the Bollinger Middle Band 10 (BMB10). The Bollinger Band 10 (BB10) contracted further to -11% today due to technical rebound; this means that it temporary avoided from downtrend and it may stay sideway at the mean time until the Bollinger10 re-open again to determine its new direction.

RSI increases slightly to 55.97; this indicates FBMKLCI is in the neutral zone and consolidation.

STC %K increases to 58.99 and the %D increases to 35.17, this indicates FBMKLCI was having technical rebound but it has not turn bullish yet until the %K crosses the 70 level.

Momentum is consolidates below the zero level, this indicates FBMKLCI is sideway.

The MACD line hooks up slightly and the histogram had started the rounding bottom; this indicates FBMKLCI may have a chance to rebound further.

Summary
All the indicators indicate FBMKLCI temporary get out from the “Bear” zone however it has not turn bullish yet. Right now it just manage to stay above the Bollinger10 Mid-band and it may move sideway until the Bollinger(10) band re-open again to determine its new direction.
The nearest possible resistance levels for FBMKLCI is 1325 (FR 76.4%) whereas the nearest possible supports levels are BMB (1313) and 1309 (FR 61.8%). Please refer to the picture below.

FBMKLCI - Technical Commentary 07/07/10

FBMKLCI was trading sideway most of the times however it was pushed up during the closing period to gain +4.67 (+0.36%) points and closed at 1311.75. It broke out the 61.8% FR level of 1309.41 today but it is still below the Bolinger10 mid band.

The overall market’s trend is considers as mixed today as there were 275 up counters and 307 down counters with the market total traded volume decreased by 13% to 539 MIL shares. The market volume is below the 40 days VMA today; this means that the investors’ confident level still low.
Today’s FBMKLCI top 5 gaining components are SIME, GENTING, TM, PPB and MISC. The top 5 lagging components are PETDAG, HLFG, YTL, MAS, and BAT.

FBMKLCI Technical Indicators
FBMKLCI still closed below the Bollinger Middle Band 10 (BMB10). The Bollinger Band 10 (BB10) had opened from yesterday's contraction to 0% today due to technical rebound; it is still considered as consolidation today.

RSI moves sideway to 54.59; this indicates FBMKLCI is in the neutral zone and consolidation.

STC %K increases to 44.43 and the %D increases to 23.39, this indicates FBMKLCI was having technical rebound but it has not turn bullish yet.

The MACD line hooks up slightly and the histogram seem to start the rounding bottom; this indicates FBMKLCI may have a chance to rebound further.

Summary

All the indicators indicate FBMKLCI is under consolidation stage although it rebounded 4.67 points today. Since the BMB of Bollinger10 is coming down, FBMKLCI may have a chance to break out the BMB tomorrow. The only concern is the regional market performance may stop FBMKLCI to rise further.

The nearest possible resistance levels for FBMKLCI are the BMB (1312-1313) and 1325 (FR 76.4%) whereas the nearest possible supports levels are 1309 (FR 61.8%) and 1296.89 (FR 50%). Please refer to the picture below.

FBMKLCI - Technical Commentary 06/07/10

Due the regional markets were having technical rebound during the late morning session; FBMKLCI was turning from “RED” to “GREEN” in the afternoon session. The trading volume started to increase in the afternoon session and the “Buy Rate” was increased from 40% to 48%. With FKLI (KLCI futures) rebounded strongly in the afternoon session, FBMKLCI was resumed above the 1300 psychological level and closed at 1307.8 (+7.58, +0.58%).

The overall market’s trend is considers as bullish today as there were 405 up counters and 195 down counters with the market total traded volume increased by 38% to 622 MIL shares. The market volume is slightly below the 40 days VMA today; this means that the investors’ confident level had increased.

Today’s FBMKLCI top 5 gaining components are MMCCORP, GENTING, PETDAG, BJTOTO and TANJONG. The top 5 lagging components are SIME, TM, AXIATA, TENAGA, and PETGAS.

FBMKLCI Technical Indicators
FBMKLCI still closed below ema14, 21, 31, and the Bollinger Middle Band 10 (BMB10). The Bollinger Band 10 (BB10) contracted -8% today due to technical rebound; it has not get out from the bearish stage yet.

RSI increases to 54.63; this indicates FBMKLCI is in the neutral zone after rebounded 7.58 points.

STC %K increases to 32.49 and the %D increases to 14.87, this indicates FBMKLCI was having technical rebound but it still remain bearish.

Momentum was rebounded but still below zero level, this indicates FBMKLCI  has not get out from the bearish stage yet.

The MACD line is moving down slightly but has not hooks up yet; this indicates FBMKLCI hasl not get out from the bearish stage yet.

Summary
All the indicators indicate FBMKLCI still within the bearish zone although it rebounded 7.58 points today. If it can rebound above the BBMB with volume support, it may resumes the up trend direction.
The nearest possible resistance levels for FBMKLCI are 1309 (FR 61.8%) and the BBMB (1314-1315) whereas the nearest possible supports levels are 1300 and 1296.89 (FR 50%). Please refer to the picture below.

FBMKLCI - Technical Commentary 05/07/10

There is no fresh news to boost the local market; FBMKLCI finally dipped below the 1300 psychological support level and closed at 1299.50 (-7.94, -0.61%). The Bollinger10 had opened 27%, with the candlestick stays below the BBMB; the continuation of down side risk is high.

The overall market’s trend is considered as bearish today as there were 182 up counters and 425 down counters with the market total traded volume decreased by 28% to 449 MIL shares. The market volume is far below the 40 days VMA today; this means that many investors still chose to stay sideline.

Today’s FBMKLCI top 4 gaining components are TANJONG, IOICORP, TM and TENAGA. The top 5 lagging components are SIME, BAT, HLFG, GENTING, and PETDAG.

FBMKLCI Technical Indicators

FBMKLCI has closed below EMA14, 21, 31, and also below the Bollinger Middle Band 10 (BMB10). The Bollinger Band 10 (BB10) expanded 27%; this means that FBMKLCI is falling and bearish.

RSI decreases to 51.34; this indicates FBMKLCI is bearish biased.

STC %K decreases to 3.77 and the %D decreases to 13.85, this indicates FBMKLCI is bearish biased.

Momentum is below zero level and moving down further, this indicates FBMKLCI is bearish biased.

The MACD line is moving down further and approaching the ZERO level; the MACD histogram had formed a rounding top, this indicates FBMKLCI is bearish biased.

Summary
All the indicators indicate FBMKLCI is bearish biased. The Bollinger band had opened 27% and with the candlestick stays below the Bollinger mid-band; this means that FBMKLCI had fell into the correction stage now.
The nearest possible resistance levels for FBMKLCI are the 1300 psychological level and 1309 (FR 61.8%) whereas the nearest possible supports levels are 1296 (FR 50%) and 1284 (FR 38.2%). Please refer to the picture below.

FBMKLCI - Technical Commentary 2/07/10

Due to the jobless claim increases, DJI plunged as many as –153 points before recovered to loss only –41 points. Most of the regional bourses were recovered from the past losses but FBMKLCI is still moving sideway to close at 1307.44 (-1.32, -0.1%). The CI had fallen below the FR 61.8% support level; 1309.41 and the weekly candlestick also dipped below the Bollinger mid-band. Right now the FR 1309.41 has become the resistance level for FBMKLCI.

The overall market’s trend is considers as mixed today as there were 286 up counters and 300 down counters with the market total traded volume increased by 12% to 626 MIL shares. The market volume is still below the 40 days VMA today; this means that many investors still chose to stay sideline.

Today’s FBMKLCI top 5 gaining components are GENTING, BAT, YTL, PETGAS, and TENAGA. The top 5 lagging components are GENM, TANJONG, HLFG, CIMB, and IOICORP.

FBMKLCI Technical Indicators
FBMKLCI has closed below ema14, 21, 31, and also below the Bollinger Middle Band 10 (BMB10). The Bollinger Band 10 (BB10) contracted -7%; this means that although the index was considered as consolidation until a re-expansion of BB10 to indicate a new direction;

RSI decreases to 57.77; this indicates FBMKLCI is in consolidation stage but slightly bearish;

STC %K grow sideway to 9.3 and the %D decreases to 26.63, this indicates FBMKLCI is bearish biased;

Momentum is decreasing below zero level, this indicates FBMKLCI is slightly bearish;

The MACD line is hooking down further and it had cut down the trigger line. 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 stage until the next re-expansion of the Bollinger Band 10 to indicate a new direction. The nearest possible resistance levels for FBMKLCI are dynamic EMA31 (1311) and the BMB10 (1320) whereas the nearest possible supports levels are physiological 1300 and 1296 (Fibo 50%).
Please refer to the picture below.

FBMKLCI - Technical Commentary - 01-Jul-2010

FBMKLCI Technical Commentary 01-Jul, Thur:

The global manufacturing data of respective countries are slipping off compare to previous month. Asia, particularly China is viewed as the engine of the global growth also indicates slow growth that in turn jitter the global economic recovery. Shanghai Composite has slipped for eight trading days consecutively, that drops around -210 pionts or -8% until today. Likewise, for DJI has slipped eight trading days consecutively, that drops by around -670 points or -6% until today.

For the last eight trading days, our FBMKLCI has slipped by around -27points or -2%. Today, FBMKLCI opens at 1312.97 (-1.05) and goes up slightly to 1315.87(+1.85) within the first 15 minutes. From then on, FBMKLCI has been slipping throughout the day to the lowest of 1306.75 (-7.27) and finally closed at 1308.76 (-5.26).

The overall market’s trend is considers as bearish biased today as there were 206 up counters and 413 down counters with the market total traded volume decreased by -1% to 557 MIL shares. The market volume is still below the 40 days VMA today; this means that many investors chose to stay sideline. However, for the last three days, it was observed that there are more of the cashing out from KLSE market, particularly during afternoon sessions.

Today’s FBMKLCI top 5 gaining components are CIMB, GENTING, BAT, GENM, and HLBANK. The top 5 lagging components are SIME, MISC, TENAGA, MAS, and AXIATA.

FBMKLCI Technical Indicators

FBMKLCI has closed below ema14, 21, 31, and also below the Bollinger Middle Band 10 (BMB10). The Bollinger Band 10 (BB10) contracted -8%; this means that although the index was downed but it is still considered as consolidation until a re-expension of BB10 to indicate a new direction;

RSI decreases to 60.36; this indicates FBMKLCI is in consolidation stage;

STC %K hooks down to 9.42 and the %D decreases to 44.48, this indicates FBMKLCI is bearish biased;

Momentum is decreasing down to almost zero level, this indicates as consolidation stage;

The MACD line is hooking down further almost to cut down the trigger line 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 stage until the next re-expension of the Bollinger Band 10 to indicate a new direction. The nearest possible resistance levels for FBMKLCI are dynamic EMA31 (1311) and the BMB10 (1322) whereas the nearest possible support levels are physcological 1300 and 1295 (Fibo 50%).
Please refer to the picture below.