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.