As I mentioned yesterday, technically the candlestick of FBMKLCI was below the Bollinger lower band and it formed a dragonfly’s shape. Potentially there will be a rebound today. Despite DJI down –58 points but our market and the Asian bourses were up. FBMKLCI rebounded strongly with high volume. If it can maintain the same momentum, we expect it will retest 1370 and even may test the next levels like 1380 to 1400. It closed unexpectedly above the BMB10 at 1360 (+10.82, +0.82%) despite the bad news in US are flying around.
The overall market’s sentiment is considered as bullish biased, as there were 502 up counters and 228 down counters with the market total traded volume increased +24.8% at 996 MIL shares. The trading volume is very much above 40 days VMA and this is good start of possible EW5.
Although most of the indicators indicate FBMKLCI is neutral today however it is considered as bullish biased due to the trading volume is surging with gainers more than the losers. The STC also rebounded from 31% to 63.55%, indicates the index is started to rebound strongly. The nearest possible resistance levels for FBMKLCI is the previous high 1370 whereas the nearest possible supports levels is the lower trend line at about 1349 and the FR 23.6% at 1340.
FKLI is bullish, up 15 points and stay above the BMB10, we had advised the investors to close the short position yesterday. Any correction is an opportunity to collect for long position. It may retest 1374.5 and even go higher if FBMKLCI can maintains its momentum like today.
FCPO rebounded strongly due to the Soya bean and Soya oil prices were rebounded. The USD was started to retreat and boost the commodities prices up..
At the time of writing,
Europe bourses are flat to –0.4%
Crude oil up 0.92% at $76.44
Soya bean up +0.88% at $10.375
Soya Oil up 1.86% at $0.4261
USD index down -0.23% at 82.58
The mini Dow Jones up 16 points at 10293
Oct FCPO close at 2718 (+45 points)
Nov FCPO closed at 2690 (+50 points)
