FBMKLCI continues to rally especially in the morning and it unexpectedly touching the upper trend just within 3 days. For no reason it went as high as 1381.41 (+10.83) before cooling down in the afternoon to close at 1378.47 (+7.89, +0.58%). Tomorrow is T+4 and we expect some correction on the heavy weighted CI components, however we also expect next batch of CI components will support the index so that they keep the market warm. Can the CI keep rally until 1400? We have no answer for you at this moment. We saw a possible of forming a bear divergence signal and this is under our radar screen.
The overall market’s sentiment is considered as bullish biased, there were 391 up counters and 367 down counters with the market total traded volume of 1.1 BIL shares (up 14.3%). 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. The STC spikes up strongly to hit 100%, RSI passed 70 level; the momentum re-surfaces to above zero level. The MACD hook up again with histogram forming round bottom now. The next possible FBMKLCI resistance level is 1383 (the upper resistance line of the ascending wedge) and 1400 psychological level whereas the nearest possible support range is 1370 and the BMB10 around 1363.
FKLI is bullish, up 14.5 points breaking the previous closing peak 1374.5 and closed at 1384. The short term view is still bullish however we saw a possible of bearish divergence formation like what we mentioned on FBMKLCI.
FCPO is under correction due to the lower export data (Aug’ 1-15) and also the Soya oil started to correct.
At the time of writing at 6:00 pm,
Europe bourses rally about 0.8 to 1.3%
Crude oil up +1.2% at $76.14
Soya bean up +0.41% at $10.575
Soya Oil up +0.83% at $0.4242
USD index down -0.47% at 82.245
The mini Dow Jones up +47 points at 10320
3rd month FCPO (Nov) closed at 2646 (-32 points)
