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.
