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.