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.
