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.
