Technical Commentary 30/4/10

Thanks to overnight DJI gained 122 points, FBMKLCI opened with gap up and continued to break out the resistance level 1347.61 at an intra-day high of 1348.15 before closing at 1346.38 (+10.52, +0.79%). FBMKLCI considered as bullish however the overall market volume still traded below 40 days VMA. There are 436 up counters and 265 down counters with the market total traded volume slightly decreased by 1.1% to 889 MIL shares.

Today’s FBMKLCI top 5 gainers components are AXIATA, TANJONG, GENTING, MAYBANK, and MMCCORP. The top 4 lagging components (only 4 losers today) are UMW, PETGAS, MISC, and KLK.

FBMKLCI Technical Indicators
The INDEX stays above the Mid-Band with the Bollinger band expanded 30%; this indicates FBMKLC is bullish biased for short-term.

RSI further increased to 59.44; this indicates FBMKLCI is slightly bullish biased for short-term.

STC %K further increased to 93.42 and the %D also increased to 79.85. This indicates FBMKLCI is bullish biased for short-term.

The MACD line had hooked up but has not touch the trigger line yet and the histogram is forming a rounding bottom; this indicates FBMKLCI is slightly bullish biased for short-term.

Summary
Most of the indicators above indicate FBMKLCI is bullish biased now. If the market volume can further increase to exceed 40 days VMA, we expect the up-trend will continue. Otherwise FBMKLCI will continue to go sideway between 1324.8 support level to 1347.61 resistance level for short term.

The nearest possible resistance levels for FBMKLCI 1340.8, 1347.61 and L1 dynamic resistance levels. The nearest possible support levels are 1340.8, 1334 and 1324.8. Please refer to the chart below for better understanding.

Follow Up Counters for 3-May-2010:

Follow Up Counters for 30-Apr-2010:

Technical Commentary 29/04/10

FBMKLCI rebounded above the resistance level 1334 and consolidated until the closing at 1335.86 (+2.69, +0.2%). Right now FBMKLCI had resumed above the Bollinger mid-band but it was considered as sideway. There are 347 up counters and 363 down counters with the market total traded volume slightly increased by 8% to 897.9 MIL shares. The market volume is just slightly below 40 days VMA today.

Today’s FBMKLCI top 5 gainers components are DIGI, GENM, GENTING, PLUS, and PETDAG. The top 5 lagging components are MMCCORP, TENAGA, CIMB, AMMB, and KLK.

FBMKLCI Technical Indicators
The INDEX stays above the Mid-Band with the Bollinger band reduces to 0%; this indicates FBMKLC is sideway biased for short-term.

RSI further increased to 52.61; this indicates FBMKLCI is sideway to slightly bullish biased for short-term.

STC %K hooks up again above threshold 70 at 75.66 and the %D also increased slightly to 78.08. This indicates FBMKLCI is sideway to slightly bullish biased for short-term.

The MACD line went sideway and the histogram went sideway as well, pending to form another rounding bottom; this indicates FBMKLCI is sideway biased.

Summary
Most of the indicators above indicate FBMKLCI is sideway to slightly bullish biased now. The increased of market volumes was mainly due to TALAM was under selling pressure with 155 MIL shares exchanged today. KNM also traded with high volumes (93 MIL shares) but it was oversold and the investors started to rush in. The nearest possible resistance levels for FBMKLCI 1340.8 and 1347.6. The nearest possible support levels are 1334, 1324.8, 1318 (Fibo23.6%). Please refer to the chart below for better understanding.

Follow Up Stocks 29-Apr-2010:









Case Study:

Technical Commentary 28/04/10

Overnight DJI was downed 213 points due Standard & Poor's downgraded Greece's debt to junk and cut Portugal's debt two notches to A-. The Asians’ bourses and our market cannot escape from the bad news, FBMKLCI opened at 1330.53 (-9.18) before gaining some strength and closed at 1333.17 (-6.55, -0.49%). Right now the index had broken down below the Mid-band, 1334 support level and the L2 trend line.
There are 236 up counters and 472 down counters with the market total traded volume decreased by 14.8% to 831 MIL shares. The market volume is just below 40 days VMA today. This means that the investors are getting caution.


Today’s FBMKLCI top 2 gainers (only 2 gainers today) components are TENAGA, and AXIATA. The top 5 lagging components are PETDAG, GENTING, DIGI, AMMB, and MMCCORP.


FBMKLCI Technical Indicators
The INDEX stays below the Mid-Band with the Bollinger band opened 2%; this indicates FBMKLC is sideway to bearish biased for short-term.


RSI further decreased to 40.12; this indicates FBMKLCI is sideway to bearish biased for short-term.


STC %K was hooked down below 70 threshold at 57.28 and the %D decreased slightly to 75.90. This indicates FBMKLCI is sideway to bearish biased for short-term.


The MACD line had hooked down and the histogram had failed to form a rounding bottom; this indicates FBMKLCI turn bearish.


Summary
Most of the indicators above indicate FBMKLCI is sideway to bearish biased now. The decreased of market volumes indicate some of the investors started to sideline.
The nearest possible resistance levels for FBMKLCI are, 1334, the Mid-band and 1347.6. The nearest possible support levels are 1321, 1318 (Fibo23.6%) and 1308. Please refer to the chart below for better understanding.

Follow up Counters:
The market sentiment is getting more negatively biased. So we advise to reduce your exposure as much as possible. Please executes your trailing stop plan closely to preserve your capital.

Technical Commentary 27/04/10

FBMKLCI was traded sideway again today and closed below the resistance 1340.8 at 1339.72 (-0.35, -0.03%). There are 178 up counters and 502 down counters with the market total traded volume increased by 21.9% to 975 MIL shares. The market volume is above 40 days VMA today. Although the index is sideway, the lower liners were under moderate to heavy selling today. The increase of volume partially caused by heavy selling on KNM and TALAM. KNM alone contributed 151.8 MIL shares exchanged. Thus the volume increased today was not healthy to the market and we view it as bearish market. Further analyse the Property Index, Construction Index, Industrial Index and Technology Index, the candlesticks were closed below the Mid-Band and all other indicators are bearish biased. Hence we suggest you to unload your stocks or reduce the exposure.

Today’s FBMKLCI top 5 gainers components are BAT, BJTOTO, GENTING, DIGI and AXIATA. The top 5 lagging components are CIMB, PBBANK, PLUS, AMMB, and TM.


FBMKLCI Technical Indicators
The INDEX was staying above the Mid-Band with the Bollinger band reduced from 9% to 0%; this indicates FBMKLCI is sideway biased.

RSI decreased slightly to 46.12; this indicates FBMKLCI is sideway biased for short term.

STC %K was hooked down to 88.76 and the %D increased slightly to 78.15. This indicates FBMKLCI is bullish biased but may start to turn down.

The MACD is growing side way but still far away from the trigger line. If it crosses the trigger line, it will be bullish biased. The histogram had formed a rounding bottom; this indicates FBMKLCI may have a chance to rebound.

Summary
Most of the indicators above indicate FBMKLCI is side biased however as stated above, the increased of volumes were caused by heavy to moderate selling pressure on the lower liners. Although the index was moving sideway today, the overall market is bearish biased. The candlestick formed a “Doji Star” at the closing; this means the direction is unclear. The nearest possible resistance levels for FBMKLCI are, 1340.8 1347.6, 1354 and the L1 trend line. The nearest possible support levels are BBMB (1335.8), 1334, the L2 trend line, and 1321. Please refer to the chart below for better understanding.