Millionaire Trend Trader: FBM KLCI New High for 2009

Thursday, October 15, 2009

FBM KLCI New High for 2009

Hi, Friends.

It's been a long lay off in writing this blog. Recently my company's technical analyst has resigned, they get me to help out in writing the technical outlook for the company's daily newsletter. So, I took it up, and think why not I post what I write to share it here as well with all my friends. Hope you enjoy reading what I write.

(Click on image to enlarge)

The FBM KLCI closed at the year high at 1,246.84 (+13.33), off the intraday high of 1,248.14. Volume surged to 1.26 billion shares, above 1.0 billion shares since 18 August 2009, indicating the return of trading activities. Market breadth at 574 gainers, 174 losers and 208 unchanged, which indicates positive outlook.

KLCI has recovered 61.8% of the downtrend range, where the 61.8% Fibonacci retracement value is 1247.84. This was hit intraday, and the CI pullback to close 1 point below it. This is an important level for the KLCI and the market may react strongly around this important Fibo level.

The uptrend of the KLCI is intact with the short term 30 days SMA, medium term 60 days SMA and the long term 120 days SMA still pointing northeast. MACD has just made a golden cross, indicating a buy. Stochastics (14,3,3) is at 90 indicating short term bullishness, but may forewarn of a possible correction due to profit taking. RSI(14) at 74 is bullish.

KLCI may test the 1250 level today, the strong overhead resistance level is at 1258. If the profit taking activities is strong, KLCI may pullback below 1250, and 1238 may provide good immediate support and opportunity to buy on dip.

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The price pattern reminds you that every movement of importance is but a repetition of similar price movements, that just as soon as you can familiarize yourself with the actions of the past, you will be able to anticipate and act correctly and profitably upon forthcoming movements. - Jesse Livermore

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Thursday, October 15, 2009

FBM KLCI New High for 2009

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