Short commentary on FKLI

FKLI was having a strong rebound on last Friday 27/5/10. It broke out the 200 days MA long-term resistance and closed at 1279 (up 26 points). However it was resisted by the Bollinger Mid-Band (BBMB) on Monday (31/5) until wed (2/6). It broke the BBMB on Thursday to close at 1300 (+20.5), but the volume is lower. It was resisted by 1302 on Thursday. On Friday 4/6, it was traded in a very narrow range, in other word it was traded sideway. It was resisted by the major resistance level at 1302. That means 1302 will provide a strong resistance for FKLI. If it can breaks out 1302 and stay above this level, it will be strengthen and possible it will hit the next level of resistance at 1321. On the other hand, if it cannot break out 1302, very likely it will turn south to retest the major support levels at 1286, 1270 (=200 days MA) and 1250. You may short the futures if it cannot break through 1302 but place a buy stop at 1304-1307. For safer, you may short if it breaks down the major support levels.

Those interested to learn FKLI, please scroll down to the right hand side bottom now

Disclaimer:
The content on this blog is provided as general information only and should not be taken as investment advice. All the content, shall not be construed as a recommendation to buy or sell any security or financial instrument. The ideas expressed are solely the opinions of the author. Any action that you take as a result of information, analysis, or commentary on this site is ultimately your responsibility. Consult your investment adviser before making any investment decisions.

Technical Commentary 04/06/10

FBMKLCI traded with caution ahead of the US’s job data tonight. It open negative and traded in sideway to close flat at 1294.39 (-0.05, -0%). The direction of FBMKLCI is unclear as its candlestick closed with a “DOJI” star; it depends very much on external factors at this moment.

The overall market’s trend is considers as mixed today as there are 313 up counters and 275 down counters with the market total traded volume increased slightly by 2.9% to 674 MIL shares. This means that the market’s volume is still below 40 days volume moving average.

Today’s FBMKLCI top 5 gainers components are MISC, BAT, PLUS, HLFG and MAXIS. The top 5 lagging components are BJTOTO, GENM, RHBCAP, PETDAG and IOICORP.

FBMKLCI Technical Indicators
The INDEX stays above the Mid-Band with the Bollinger band contracted only -9%; this indicates FBMKLCI is considers as consolation.

RSI decreases slightly to 33.74; this indicates FBMKLCI is considers as consolation.

STC %K increases to 93.77 and the %D increased to 58.68, this indicates FBMKLCI is bullish biased.

The MACD line went sideway below the ZERO level and the histogram continues with the rounding bottom, this indicates FBMKLCI is slightly bullish biased.

Summary
The indicators for FBMKLCI are mixed today, however the chart indicates the direction of FBMKLCI is unclear. Technically it is considered as sideway.

The nearest possible resistance levels for FBMKLCI are 1302 and 1320. The nearest possible support levels are 1287, BBMB, 1272. Please click on the chart below for better understanding.

Technical Commentary 03/06/10

Due to strong US’s housing data, global market rebounded strongly today. FBMKLCI open with gap up at 1285.54 (+9.52), it continues to break out 1287 resistance level and finally closed at 1294 (+18.42, +1.44%). Although the index rebounded strongly today but the trading volume is not supporting the uptrend. We still need to be caution because it will not sustain without the volume support.

The overall market’s trend is considers as bullish today as there are 542 up counters and 154 down counters with the market total traded volume increased by 11.9% to 655 MIL shares. This means that the market’s volume is still below 40 days volume moving average.

Today’s FBMKLCI top 5 gainers components are GENM, GENTING, CIMB, HLFG and AXIATA. The top 2 lagging components (only 2 losers today) are UMW and TM.

FBMKLCI Technical Indicators
The INDEX stays above the Mid-Band with the Bollinger band contracted another -22%; this indicates FBMKLCI is considers as consolation although it rebounded strongly.

RSI increases slightly to 34.89; this indicates FBMKLCI is not turning bullish yet.

STC %K increases to 77.49 and the %D increased to 48.9, this indicates FBMKLCI is bullish biased.

The MACD line hooks up again after strong rebound (below ZERO level) and the histogram continues with the rounding bottom, this indicates FBMKLCI is bullish biased.

Summary
The indicators for FBMKLCI are mixed today, however the EMA 14/21/31 indicates FBMKLCI still not turn bullish. Technically it still considers as technical rebound. We still need a few more days to confirm its trend.

The nearest possible resistance levels for FBMKLCI are 1302 and 1320. The nearest possible support levels are 1287, BBMB, 1272. Please click on the chart below for better understanding.

Technical Commentary 02/06/10

The World Cup is just around the corner. It is quite obvious that the market is lack of support today. FBMKLCI is traded in a very narrow range until the last 10 minutes it was pushed down -4.73 points to close at 1276.02 (-6.95, -0.54%). FKLI just traded the other way but it considers as sideway and closing positive at 1279.5 (+7, +0.6%).

FBMKLCI still resisted by the Bollinger mid-band at about 1278 at this moment. The overall market’s trend is considers as mixed today as there are 287 up counters and 294 down counters with the market total traded volume decreased by 10% to 585 MIL shares. This means that the market’s volume getting lower and more investors are sideline today.

Today’s FBMKLCI top 3 gainers components (only 3 gainers today) are PETDAG, GENTING and SIME. The top 5 lagging components are GENM, NESTLE, HLFG, PLUS and BJTOTO.

FBMKLCI Technical Indicators
The INDEX still stays below the Mid-Band with the Bollinger band contracted another -14%; this indicates FBMKLCI is consolation just below the Mid-Band.

RSI decreases slightly to 28.32; this indicates FBMKLCI is consolidation.

STC %K decreases slightly to 37.75 and the %D increased to 37.69, this indicates FBMKLCI is moving side way.

The MACD line grows sideway today (below ZERO level) and the histogram may form a rounding top today, this indicates FBMKLCI is moving sideway.

Summary
All the indicators indicate FBMKLCI is consolidation; it faces a strong resistance below the BBMB at 1278 today. Technically it will continue to move sideway rather than up-trend. 1284-1285 could form another lower high for FBMKLCI if it cannot exceed this level in the next few days. This means it will have a chance to retest 200 days MA or lower soon.

The nearest possible resistance levels for FBMKLCI are BBMB, 1284 and 1290.5. The nearest possible support levels are 1272, 1254 and 1224. Please click on the chart below for better understanding.

Current View of KLCI & DJI

The following is the technical view of KLCI & DJI until current sentiment.
You may contact JK Kang (012-4259118) for further details.

FBMKLCI - Technical Commentary 01/06/10

Today is a volatile day for FBMKLCI. It was losing -8 points at 1277 the beginning of 1ST 10 mins and then it was pushed up +5.47 points at the last 10 mins from 1277.5 to close at 1282.97 (-2.04, -0.16%). However the FBMKLCI futures (FKLI) does not follow the index, it gave up –15.5 points (-1.2%) to close at 1272.5. FBMKLCI was resisted by the Bollinger mid-band at about 1285 at today.

The overall market’s trend is considers bearish today as there are 200 up counters and 487 down counters with the market total traded volume decreased by 14% to 653 MIL shares. The problematic counter; KENMARK alone contributed 191 MIL shares. This means that the market’s volume getting lower and more investors are sideline today.

Today’s FBMKLCI top 5 gainers components are NESTLE, GENM, MAYBANK, IOICORP and BJTOTO. The top 5 lagging components are TANJONG, HLFG, HLBANK, MISC and TM.

FBMKLCI Technical Indicators
The INDEX still stays below the Mid-Band with the Bollinger band contracted another 11%; this indicates FBMKLCI is consolation just below the Mid-Band.

RSI decreases slightly to 32.89; this indicates FBMKLCI moving side way.

STC %K decreases slightly to 43.74 and the %D increased to 28.13, this indicates FBMKLCI moving side way.

The MACD line continues to hook up (below ZERO level) and the histogram was started to form a rounding bottom, this indicates FBMKLCI may has a chance to rebound.

Summary
All the indicators indicate FBMKLCI is sideway biased however right now it faces stronger resistance below the BBMB. Technically it will move sideway rather than up-trend.
The nearest possible resistance levels for FBMKLCI are 1282/BBMB, 1290 and 1302. The nearest possible support levels are 1272, 1254 and 1224. Please click on the chart below for better understanding.

Recovery doubts pressure European shares; BP falls

June 1 (Reuters) - European shares fell on Tuesday, as slowing Chinese factory output fuelled pessimism over global economic recovery and banks slid after the European Central Bank said euro zone lenders face another wave of potential writedown.


BP (BP.L) sank more than 12 percent, as its attempt to plug an oil leak in the Gulf of Mexico failed. The firm said the cost of tackling the spill totalled $990 million as it prepares for a new attempt to control the flow.

By 0707 GMT, the pan-European FTSEurofirst 300 .FTEU3 index of top shares shed 0.9 percent to 991.97 points, a day after shares posted their worst monthly performance since February 2009.

"We've had a fantastic run since March last year and at some stage there was going to be a level of pullback. There is very little reason at the moment for people to be adding more risk," said Justin Urquhart Stewart, director at Seven Investment Management.

Banks were among the biggest decliners, Barclays (BARC.L), HSBC (HSBA.L), Societe Generale (SOGN.PA), BNP Paribas (BNPP.PA) and Deutsche Bank (DBKGn.DE) off 0.3 to 1.9 percent. (Reporting by Harpreet Bhal)

Source: Yahoo Finance/Reuters

SOUTH BOUND FBMKLCI, FURTHER???

Obviously, this early morning, our FBMKLCI could not beat against the Bollinger Middle Band (BMB10) revert downward.

We have not been posting any counters to watch because there isn't any stable sign of settling for the past two weeks. Rather we keep mentioning cash out from the market two weeks ago, and for belated individual treats any possible rebound as an opportunity to liquidate and preserve your capital before the KLCI heading south bound... and this time may perhaps further toward 1224 and may be lower....

Let's see by end of today and subsequent days whether our FBMKLCI could come back above BMB10 and stay above for positive sign, otherwise prepare for lower bound.

For sideline investors, still stay sideline until the water is settled and clear for further actions later......