Technical Commentary 18/8/10

FBMKLCI continues to rally into the 4th day with closing high of 1385.51, up 7.04, +0.51% (2 points during the last 15 minutes). The final push up activities only take place during the last 60 minutes. There are a few CI components like MAXIS, CIMB, SIME, MISC, AMMB, and UMW rotating to sustain FBMKLCI higher.

The overall market’s sentiment is considered as mixed, there are 334 up counters and 377 down counters with the market total traded volume of 998MIL shares (down -10.3%). The trading volume is still above 40 days VMA. But the overall market buy rate is not optimistic at 38% only. It indicates that more selling then buying activities. The observation of possible bearish divergence between the FBMKLCI and MACD is still vulnerable to take place thus far.

Most indicators indicate FBMKLCI is bullish biased. The STC spikes up strongly to hit 100%, RSI is at 75 level. The MACD comes very closed to cross the trigger line with round bottom histogram formation is almost crossing zero level . FBMKLCI breaks out of the resistance line of ascending wedge by 2 points to close at 1385. The next possible FBMKLCI resistance level by fibonacci extension 1389 and perhaps psychological level of 1400. Whereas the nearest possible support range is 1363 to 1370.

FKLI is marginally up by +1.5 points to closed at 1385.50. Comparing to the FBMKLCI, FKLCI still within the ascending wedge just on the resistance line of wedge. The observation of possible bearish divergence between the FKLCI and MACD is still vulnerable to take place thus far.

FCPO is still correcting further 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 mixed ranging +0.8% to -0.6%
Crude oil down -0.79% at $75.17
Soya bean down -0.62% at $10.355
Soya Oil down -0.75% at $0.4128
USD index down -0.14% at 82.22
The mini Dow Jones up +2 points at 10360
3rd month FCPO (Nov) closed at 2610 (-36 points)