Counter To Watch : Ajinomoto 8/4/10

AJI (Ajinomoto) 2658 Consumer
Comment = Heavy Selling pressure on 6/4 & 7/4 but the price is able to stay and surge on 8/4/10. A very good fundamental company and its Financial Year End @ 31/3/10.
Behaviour = Conservative Stock now active with volume, above VMA40.
TechAspect = Just pull back from recent surge up, now Histogram 4R1G. Possible break above recent high 4.27 if the volume persist.
Convergence signal = High selling pressure & KLCI correction but price stay and start moving up again.
Trailing Stop = Early entry set Trailing Stop at BBM or EMA142131.
Point = Abnormal price & volume movement may implies something special on the way

Technical Commentary 08/4/10

FBMKLCI was under correction today after it had closed positive for the past 12 sessions. It was open at 1342.31 (-2.79) and then it started all the way down to an intra-day low of 1331.46 (-13.63) at 11:10am. Bollinger mid-band supported it at about 1330.4. The situation was under control after 11:10am and it finally closed at 1332.93 (-12.16, -0.9%).
The overall market sentiment was turned bearish after the benchmark KLCI fell about 1% today. There are 239 up counters and 476 down counters with the market total traded volume increased by 12.7% to 1.27 BIL shares. Although the selling is heavy, there are still many investors willing to buy the stocks at lower price. The market still consider active and Scomi family contributes 3 out of 4 most active counters today.

Today’s FBMKLCI top 5 gainers components are ASTRO, GENTING, BAT, PETDAG and NESTLE. The top 5 lagging components are CIMB, MISC, GENM, MMCCORP and PLUS.

FBMKLCI Technical Indicators
The candlestick manages to stay above the mid-band with the Bollinger band contracted -9%; this indicates FBMKLCI is under correction and may consolidate from this level. The BBMB temporary provides support to FBMKLCI for now.

RSI retracted at 71.55; this indicates FBMKLCI will correct in short-term. However it is still above the 70 levels, this means the bullish trend has not broken yet.

STC %K decreased to 57.51 and the %D decreased slightly to 87.68. This indicates FBMKLCI was under correction but the %D still stay above 70 levels, this means the bullish trend has not broken yet.

The MACD hooked down and the histogram had formed a rounding top. This indicates FBMKLCI short-term correction.

Summary
FBMKLCI had broken down the L1 trend line and further broke below the support level 1334 today. It was supported by BBMB at about 1330.5 at this stage. We believe the correction is healthy in order for the market to rally further. We also expect the correction and consolidation to be continued in the next few days. If the support level 1292 has not broken, the market up trend direction still intact.
The nearest possible resistance levels for FBMKLCI are 1334, 1347.61 and 1353. The nearest possible support levels are 1330.4 (BBMB), 1320, and 1308. Please refer to the chart below for better understanding.

Counter to Watch:

IJMLAND-WA, PWORTH, WCT

Technical Commentary 07/4/10

FBMKLCI was traded sideway for most of the trading session today and it was closed positive at 1345.09 (+0.72, +0.05). Although FBMKLCI is considered as sideway today however the overall market still bullish biased as rotational play still going on. There are 396 up counters and 366 down counters with the market total traded volume slightly increased by 1.1% to 1.134 BIL shares. Today is the 3rd day the market continues to trade above 1 billion shares. We maintain our bullish outlook on KLSE.

Today’s FBMKLCI top 5 gainers components are TENAGA, RHBCAP, NESTLE, PETGAS and BJTOTO. The top 5 lagging components are TANJONG, AXIATA, HLBANK, GENTING and CIMB.

FBMKLCI Technical Indicators
The candlestick still stays above the mid-band with the Bollinger band at 0%; this indicates FBMKLCI is sideway biased.

RSI go sideway at 86.11; this indicates FBMKLCI still bullish but it will trade sideway in short-term.

STC %K decreased slightly to 93.51 and the %D decreased slightly to 96.39. This indicates FBMKLCI still bullish but it is weakened now may go sideway or correction.

The MACD continues to hook up and crosses the R1 line (see picture), this will avoid the chart to form a bearish divergence signal. The histogram is not growing today; it is flat and might form a rounding top if the index continues to go sideway. Once a rounding top is formed, the index will correct for short-term.

Summary
FBMKLCI is traded sideway today however the overall market is considered as bullish as rotational play on the lower liners is continuing. We can notice rotational profit taking also took place. Those previously pushed up counters like Unisem and Bjcorp; after they had consolidated for a few days, they were pushed up again. We believe the process will continue until the Bull Run end. We are still bullish on the market as the market volumes continue to trade above 1 billions shares for 3 consecutive days. However the index had continued uptrend for 12 sessions, we predict there will be a correction or sideway soon. The nearest possible resistance levels for FBMKLCI are 1347.61 (today high), 1353 and 1436. The nearest possible support levels are 1344 (L1), 1334, 1320, and 1308. Please refer to the chart below for better understanding.

Technical Commentary 06/4/10

Thanks to positive economic and jobs data in US, FBMKLCI continues to trend up today and closed marginally above the L1 trend line at 1344.37 (+2.62, +0.2%). It was considered as sideway today however it is still bullish biased. There are 406 up counters and 369 down counters with the market total traded volume slightly increased by 6.6% to 1.12 BIL shares. Today is the 2nd day the market traded above 1 billion shares. We maintain our bullish outlook on KLSE.

Today’s FBMKLCI top 5 gainers components are TENAGA, RHBCAP, NESTLE, YTL and AMMB. The top 5 lagging components are BJTOTO, MISC, IOICORP, GENTING and PLUS.

FBMKLCI Technical Indicators
The candlestick still stays above the mid-band with the Bollinger band contracted -5%, this indicates FBMKLCI uptrend is weakening and go sideway.

RSI hooked up again to 86.64; this indicates FBMKLCI still bullish. Uptrend still intact.

STC %K decreased to 95.18 and the %D increased to 96.29. This indicates FBMKLCI still bullish but it is weakened now and may go sideway or correction.

The MACD continues to hook up and crosses the trigger line. This indicates FBMKLCI still bullish biased. Uptrend still intact.

Summary
FBMKLCI continues its uptrend today however it is weakening now as the BB contracted -5% today. It manages to stand above the L1 trend line however the break out is not solid. If it can grow a few more points tomorrow then we are confident it will not break down the L1. We are bullish on the market now as the market volumes continue to trade above 1 billions shares today. However the index had continued uptrend for 11 sessions, we predict there will be a small correction or sideway soon. The nearest possible resistance levels for FBMKLCI are 1346.23, 1353 and 1436. The nearest possible support levels are 1343 (L1), 1334, 1320, and 1308. We would like to see the MACD to hook up some more above the previous peak, or else a bearish divergence will form and the market correction cannot be avoided. Please refer to the chart below for better understanding.

Counters to Watch:

FAJAR, L&G, MUHIBAH, ZELAN, ANNJOO-WB

Technical Commentary 05/04/10

Thanks to US jobs market recovery and the Asians’ bourses continue to performance positively, FBMKLCI was opened with a small gap up at 1339.30 (+3.36). It continued to maintain above this level and closed up another new high at 1341.75 (+5.81, +0.43%). It was exactly resisted by the L1’s dynamic trend line at 1342 today. The heavy weight financial stocks like CIMB, HLBANK and PBBANK continue to support the composite index.

There are 403 up counters and 322 down counters with the market total traded volume increased by 27% to 1.05 BIL shares. We like to see the market’s volumes resume above 1 Billion shares so that it can absorb any selling pressure. However we also notice profit taking is happening on the lower liners today.

Today’s FBMKLCI top 5 gainers components are CIMB, BAT, KLK, PBBANK and HLBANK. The top 4 lagging components are BJTOTO, GENM, GENTING and DIGI.

FBMKLCI Technical Indicators
The candlestick still stays above the mid-band with the Bollinger band expanded another 8%, this indicates FBMKLCI is still bullish biased and uptrend is intact.

RSI increased to 84.89; this indicates FBMKLCI is quite bullish now. Uptrend will continue.

STC %K increased to 99.03 and the %D increased to 95.28. This indicates FBMKLCI is quite bullish, uptrend will continue. However it also indicates it is near overbought now and there might be a correction soon.

The MACD continues to hook up and crosses the trigger line. This indicates FBMKLCI is bullish biased. Uptrend still intact.

Summary
FBMKLCI continues its uptrend today however it is facing the L1 dynamic resistance at 1342 today. If it is able to break out the L1, there will be more upside for the composite index. We saw the market volumes resume above 1 billion shares today; this is definitely good news to maintain the market uptrend direction. The nearest possible resistance levels for FBMKLCI are 1342.5 (L1 trend line), 1353 and 1436. The nearest possible support levels are 1334, 1320, and 1308. The mid-term view of FBMKLCI also bullish biased and the market is uptrend now. Please refer to the chart below for better understanding.

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