Technical Commentary 16/8/10

FBMKLCI continues the rebound with strength and volume. It finally closed marginally higher than previous peak at 1370.58 up by +10.43 (+0.77%). If we can maintain the same momentum, we expect it will further test the next levels like 1380 to 1400.

The overall market’s sentiment is considered as bullish biased, there were 405 up counters and 320 down counters with the market total traded volume of 973 MIL shares, that’s slightly decreased by -2%. The trading volume is very much above 40 days VMA and this is good continuation for the possible Elliot Wave 5.

Most indicators indicate FBMKLCI is bullish biased due to more gainers than the losers. The STC spikes up strongly to hit 100%, RSI almost at 70, momentum re-surfaces to above zero level. The MACD hook up again with histogram forming round bottom now. The next possible FBMKLCI resistance levels are 1373 and 1383 (the upper resistance line of the ascending wedge) whereas the nearest possible support range is 1363-1366 and dynamic ema14.

FKLI is bullish, up 8 points breaking the previous closing peak (1367) and closed at 1369.50. It may retest previous peak of 1374.5 then the upper resistance line of ascending wedge at 1376, and may be even higher toward 1380-1390 if FBMKLCI can maintain its momentum like today.

FCPO down by due to the Soya bean and Soya oil prices were retreated. The USD also retreated that causes commodity prices too.

At the time of writing at 6:01pm,
Europe bourses are down ranging –0.3% to -0.7%
Crude oil up 0.54% at $75.8
Soya bean down -0.26% at $10.4125
Soya Oil down -0.67% at $0.4285
USD index down -0.44% at 82.67
The mini Dow Jones down -10 points at 10256
Nov FCPO closed at 2678 (-12 points)
Dec FCPO closed at 2670 (-11 points)