Divergence signal really help

You believe or not, divergence signal really help us to trade objectively. BULLSH divergence provides us an early entry points whereas BEARISH divergence will hint us to get out early. It really works most of the times. Please look at TITAN, see how much it surge after bullish divergence? It was at 1.10 when the bullish divergence was detected. Since then it went up by forming a higher low and the EMA 14/21/31 never ask you to get out. It closed 1.70 yesterday (Fri 9/7/10). It up 54% since 26/5, less than 2 months. Is it better than FD?

Divergence signal not only apply on individual stocks but also on indices. Look at Dow Jones this few days, it is rebounded for 3 days because of bullish divergence. Although we are not sure how much more it is going to rise but at least it had done for 3 days.

There are many many other counters going to form a BULLISH divergence pattern soon. If the market is going to maintain bullish, these counters will surge and generate a good income for you. I can find more than 20 of them now using our Winchart. If you wanted to know what are those counters and hoping to make some extra income, please come to join our next training on 18/7/10 (Sun) at YMCA, details to be published soon. Please click on the charts below to believe yourself.

FBMKLCI - Technical Commentary 09/07/10

FBMKLCI was traded sideway in the early morning however buying interest started to increase (buy rate increases) at about 11am. The KLCI futures (FKLI) started to surge at 10:45am and then follow up by FBMKLCI. It broke out the 1325 resistance level and went as high as 1327.27 (+11.24) before profit taking took place to close at 1324.31 (+8.28, +0.63%). The FR 76.4%, 1325 still maintains the resistance level for FBMKLCI at this moment. Despite the CI up +8.28 points but the Bollinger10 has not open yet, so it is still considers as technical rebound.

The overall market’s trend is considers as bullish today as there were 405 up counters and 238 down counters with the market total traded volume increased by 24.7% to 664 MIL shares. The market volume is slightly above the 40 days VMA today; this means that some aggressive investors’ had returned to the market.

Today’s FBMKLCI top 5 gaining components are PPB, PETGAS, AXIATA, MAS and HLFG. The top 5 lagging components are MMCCORP, GENTING, TANJONG, TM, and SIME.

FBMKLCI Technical Indicators
FBMKLCI stays above the Bollinger Middle Band 10 (BMB10). The Bollinger Band 10 (BB10) had reduced its contraction to -2% today due to technical rebound; this means that it is considered as technical rebound.

RSI moves sideway to 53.6; this indicates FBMKLCI is in the neutral zone and consolidation.

STC %K increases to 81.54 and the %D increases to 53.86, this indicates FBMKLCI
is bullish biased.

Momentum is trending up but slightly below the zero level, this indicates FBMKLCI is considered as neutral.

The MACD trending up slightly and the histogram had started the rounding bottom; this indicates FBMKLCI may have a chance to rebound further.

Summary
Most the indicators indicate FBMKLCI is having technical rebound but has not turn bullish yet. Once the Bollinger10 is opened and the index closed above the BMB, FBMKLCI will be considered as bullish trend. Right now the index was resisted by the 76.4% FR at 1325. Once this hurdle is cleared, it may reach 1335 or higher.

The nearest possible resistance levels for FBMKLCI is 1325 (FR 76.4%) and the L1 trend line whereas the nearest possible supports levels is BMB (1314) and 1309 (FR 61.8%). Please refer to the picture below.

FBMKLCI - Technical Commentary 08/07/10

Despite DJI surged +274 and most of the regional markets follow but FBMKLCI did not move up much, it traded sideway most of the sessions and closed positively at 1316.03 (+4.28, +0.33%). It manages to stay above the Bollinger10 mid-band now however the Bollinger10 has not open yet. This means that it will consolidate further until the Bollinger10 re-open to determine its direction.

The overall market’s trend is considers as slightly bullish today as there were 365 up counters and 242 down counters with the market total traded volume decreased by 1.3% to 532 MIL shares. The market volume is below the 40 days VMA today; this means that the investors’ confident level still low.

Today’s FBMKLCI top 5 gaining components are SIME, HLFG, PETDAG, PLUS and YTL. The top 5 lagging components are MMCCORP, IOICORP, MAXIS, MISC, and AXIATA.

FBMKLCI Technical Indicators
FBMKLCI stays above the Bollinger Middle Band 10 (BMB10). The Bollinger Band 10 (BB10) contracted further to -11% today due to technical rebound; this means that it temporary avoided from downtrend and it may stay sideway at the mean time until the Bollinger10 re-open again to determine its new direction.

RSI increases slightly to 55.97; this indicates FBMKLCI is in the neutral zone and consolidation.

STC %K increases to 58.99 and the %D increases to 35.17, this indicates FBMKLCI was having technical rebound but it has not turn bullish yet until the %K crosses the 70 level.

Momentum is consolidates below the zero level, this indicates FBMKLCI is sideway.

The MACD line hooks up slightly and the histogram had started the rounding bottom; this indicates FBMKLCI may have a chance to rebound further.

Summary
All the indicators indicate FBMKLCI temporary get out from the “Bear” zone however it has not turn bullish yet. Right now it just manage to stay above the Bollinger10 Mid-band and it may move sideway until the Bollinger(10) band re-open again to determine its new direction.
The nearest possible resistance levels for FBMKLCI is 1325 (FR 76.4%) whereas the nearest possible supports levels are BMB (1313) and 1309 (FR 61.8%). Please refer to the picture below.

FBMKLCI - Technical Commentary 07/07/10

FBMKLCI was trading sideway most of the times however it was pushed up during the closing period to gain +4.67 (+0.36%) points and closed at 1311.75. It broke out the 61.8% FR level of 1309.41 today but it is still below the Bolinger10 mid band.

The overall market’s trend is considers as mixed today as there were 275 up counters and 307 down counters with the market total traded volume decreased by 13% to 539 MIL shares. The market volume is below the 40 days VMA today; this means that the investors’ confident level still low.
Today’s FBMKLCI top 5 gaining components are SIME, GENTING, TM, PPB and MISC. The top 5 lagging components are PETDAG, HLFG, YTL, MAS, and BAT.

FBMKLCI Technical Indicators
FBMKLCI still closed below the Bollinger Middle Band 10 (BMB10). The Bollinger Band 10 (BB10) had opened from yesterday's contraction to 0% today due to technical rebound; it is still considered as consolidation today.

RSI moves sideway to 54.59; this indicates FBMKLCI is in the neutral zone and consolidation.

STC %K increases to 44.43 and the %D increases to 23.39, this indicates FBMKLCI was having technical rebound but it has not turn bullish yet.

The MACD line hooks up slightly and the histogram seem to start the rounding bottom; this indicates FBMKLCI may have a chance to rebound further.

Summary

All the indicators indicate FBMKLCI is under consolidation stage although it rebounded 4.67 points today. Since the BMB of Bollinger10 is coming down, FBMKLCI may have a chance to break out the BMB tomorrow. The only concern is the regional market performance may stop FBMKLCI to rise further.

The nearest possible resistance levels for FBMKLCI are the BMB (1312-1313) and 1325 (FR 76.4%) whereas the nearest possible supports levels are 1309 (FR 61.8%) and 1296.89 (FR 50%). Please refer to the picture below.

FBMKLCI - Technical Commentary 06/07/10

Due the regional markets were having technical rebound during the late morning session; FBMKLCI was turning from “RED” to “GREEN” in the afternoon session. The trading volume started to increase in the afternoon session and the “Buy Rate” was increased from 40% to 48%. With FKLI (KLCI futures) rebounded strongly in the afternoon session, FBMKLCI was resumed above the 1300 psychological level and closed at 1307.8 (+7.58, +0.58%).

The overall market’s trend is considers as bullish today as there were 405 up counters and 195 down counters with the market total traded volume increased by 38% to 622 MIL shares. The market volume is slightly below the 40 days VMA today; this means that the investors’ confident level had increased.

Today’s FBMKLCI top 5 gaining components are MMCCORP, GENTING, PETDAG, BJTOTO and TANJONG. The top 5 lagging components are SIME, TM, AXIATA, TENAGA, and PETGAS.

FBMKLCI Technical Indicators
FBMKLCI still closed below ema14, 21, 31, and the Bollinger Middle Band 10 (BMB10). The Bollinger Band 10 (BB10) contracted -8% today due to technical rebound; it has not get out from the bearish stage yet.

RSI increases to 54.63; this indicates FBMKLCI is in the neutral zone after rebounded 7.58 points.

STC %K increases to 32.49 and the %D increases to 14.87, this indicates FBMKLCI was having technical rebound but it still remain bearish.

Momentum was rebounded but still below zero level, this indicates FBMKLCI  has not get out from the bearish stage yet.

The MACD line is moving down slightly but has not hooks up yet; this indicates FBMKLCI hasl not get out from the bearish stage yet.

Summary
All the indicators indicate FBMKLCI still within the bearish zone although it rebounded 7.58 points today. If it can rebound above the BBMB with volume support, it may resumes the up trend direction.
The nearest possible resistance levels for FBMKLCI are 1309 (FR 61.8%) and the BBMB (1314-1315) whereas the nearest possible supports levels are 1300 and 1296.89 (FR 50%). Please refer to the picture below.

FBMKLCI - Technical Commentary 05/07/10

There is no fresh news to boost the local market; FBMKLCI finally dipped below the 1300 psychological support level and closed at 1299.50 (-7.94, -0.61%). The Bollinger10 had opened 27%, with the candlestick stays below the BBMB; the continuation of down side risk is high.

The overall market’s trend is considered as bearish today as there were 182 up counters and 425 down counters with the market total traded volume decreased by 28% to 449 MIL shares. The market volume is far below the 40 days VMA today; this means that many investors still chose to stay sideline.

Today’s FBMKLCI top 4 gaining components are TANJONG, IOICORP, TM and TENAGA. The top 5 lagging components are SIME, BAT, HLFG, GENTING, and PETDAG.

FBMKLCI Technical Indicators

FBMKLCI has closed below EMA14, 21, 31, and also below the Bollinger Middle Band 10 (BMB10). The Bollinger Band 10 (BB10) expanded 27%; this means that FBMKLCI is falling and bearish.

RSI decreases to 51.34; this indicates FBMKLCI is bearish biased.

STC %K decreases to 3.77 and the %D decreases to 13.85, this indicates FBMKLCI is bearish biased.

Momentum is below zero level and moving down further, this indicates FBMKLCI is bearish biased.

The MACD line is moving down further and approaching the ZERO level; the MACD histogram had formed a rounding top, this indicates FBMKLCI is bearish biased.

Summary
All the indicators indicate FBMKLCI is bearish biased. The Bollinger band had opened 27% and with the candlestick stays below the Bollinger mid-band; this means that FBMKLCI had fell into the correction stage now.
The nearest possible resistance levels for FBMKLCI are the 1300 psychological level and 1309 (FR 61.8%) whereas the nearest possible supports levels are 1296 (FR 50%) and 1284 (FR 38.2%). Please refer to the picture below.

FBMKLCI - Technical Commentary 2/07/10

Due to the jobless claim increases, DJI plunged as many as –153 points before recovered to loss only –41 points. Most of the regional bourses were recovered from the past losses but FBMKLCI is still moving sideway to close at 1307.44 (-1.32, -0.1%). The CI had fallen below the FR 61.8% support level; 1309.41 and the weekly candlestick also dipped below the Bollinger mid-band. Right now the FR 1309.41 has become the resistance level for FBMKLCI.

The overall market’s trend is considers as mixed today as there were 286 up counters and 300 down counters with the market total traded volume increased by 12% to 626 MIL shares. The market volume is still below the 40 days VMA today; this means that many investors still chose to stay sideline.

Today’s FBMKLCI top 5 gaining components are GENTING, BAT, YTL, PETGAS, and TENAGA. The top 5 lagging components are GENM, TANJONG, HLFG, CIMB, and IOICORP.

FBMKLCI Technical Indicators
FBMKLCI has closed below ema14, 21, 31, and also below the Bollinger Middle Band 10 (BMB10). The Bollinger Band 10 (BB10) contracted -7%; this means that although the index was considered as consolidation until a re-expansion of BB10 to indicate a new direction;

RSI decreases to 57.77; this indicates FBMKLCI is in consolidation stage but slightly bearish;

STC %K grow sideway to 9.3 and the %D decreases to 26.63, this indicates FBMKLCI is bearish biased;

Momentum is decreasing below zero level, this indicates FBMKLCI is slightly bearish;

The MACD line is hooking down further and it had cut down the trigger line. The MACD histogram had formed a rounding top, this indicates FBMKLCI is bearish biased.

Summary
Most of the indicators indicate FBMKLCI is bearish biased but it is still considered as consolidation stage until the next re-expansion of the Bollinger Band 10 to indicate a new direction. The nearest possible resistance levels for FBMKLCI are dynamic EMA31 (1311) and the BMB10 (1320) whereas the nearest possible supports levels are physiological 1300 and 1296 (Fibo 50%).
Please refer to the picture below.

FBMKLCI - Technical Commentary - 01-Jul-2010

FBMKLCI Technical Commentary 01-Jul, Thur:

The global manufacturing data of respective countries are slipping off compare to previous month. Asia, particularly China is viewed as the engine of the global growth also indicates slow growth that in turn jitter the global economic recovery. Shanghai Composite has slipped for eight trading days consecutively, that drops around -210 pionts or -8% until today. Likewise, for DJI has slipped eight trading days consecutively, that drops by around -670 points or -6% until today.

For the last eight trading days, our FBMKLCI has slipped by around -27points or -2%. Today, FBMKLCI opens at 1312.97 (-1.05) and goes up slightly to 1315.87(+1.85) within the first 15 minutes. From then on, FBMKLCI has been slipping throughout the day to the lowest of 1306.75 (-7.27) and finally closed at 1308.76 (-5.26).

The overall market’s trend is considers as bearish biased today as there were 206 up counters and 413 down counters with the market total traded volume decreased by -1% to 557 MIL shares. The market volume is still below the 40 days VMA today; this means that many investors chose to stay sideline. However, for the last three days, it was observed that there are more of the cashing out from KLSE market, particularly during afternoon sessions.

Today’s FBMKLCI top 5 gaining components are CIMB, GENTING, BAT, GENM, and HLBANK. The top 5 lagging components are SIME, MISC, TENAGA, MAS, and AXIATA.

FBMKLCI Technical Indicators

FBMKLCI has closed below ema14, 21, 31, and also below the Bollinger Middle Band 10 (BMB10). The Bollinger Band 10 (BB10) contracted -8%; this means that although the index was downed but it is still considered as consolidation until a re-expension of BB10 to indicate a new direction;

RSI decreases to 60.36; this indicates FBMKLCI is in consolidation stage;

STC %K hooks down to 9.42 and the %D decreases to 44.48, this indicates FBMKLCI is bearish biased;

Momentum is decreasing down to almost zero level, this indicates as consolidation stage;

The MACD line is hooking down further almost to cut down the trigger line and the MACD histogram had formed a rounding top, this indicates FBMKLCI is bearish biased.

Summary

Most of the indicators indicate FBMKLCI is bearish biased but it is still considered as consolidation stage until the next re-expension of the Bollinger Band 10 to indicate a new direction. The nearest possible resistance levels for FBMKLCI are dynamic EMA31 (1311) and the BMB10 (1322) whereas the nearest possible support levels are physcological 1300 and 1295 (Fibo 50%).
Please refer to the picture below.