Most major Asian bourses was down on Friday 16-10-2009, with profit taking activities continued to rule as the indexes make new high. Australia's AORD -19.90 @4842.60, Singapore's STI -4.03 @2708.12, Hong Kong's HSI -69.18 @21,929.90, Korea's KS11 -18.63 @1640.36 and Japan's N225 was up slightly @10,257.56 (+18.91). FBM KLCI started Friday cautiously with bouts of profit taking continued into midday, and the market turn bullish in the afternoon session with selective buying of big cap stocks which eventually push the index to close at the year high of 1256.77 (+9.91).
KLCI is currently in a positive mood after breaking above the psychological resistance level of 1250 and close at the high of the day. Volume was active with 1.147 billion shares traded valued at 1.217 billion Ringgit. Market breadth was healthy with 481 gainers to 239 losers, 238 counters were unchanged. Week on week, the volume has increased from 3.618 billion shares to 5.353 billion shares indicating the return of short term trading activities.
KLCI's trend is up with all the moving averages (short, medium, and long term) continue to point northeast. MACD continued to move upward, with the MACD histogram showing signs of gaining momentum. RSI(14) at 77.9 indicate bullishness and the continuing upward momentum. Stochastic(14,3,3) at 93 again hook up indicating market strength.
The 1250 is an important psychological level, it will be tested before the market can move higher.
Fundamentally, the continue weakening of the Dollar has saw the inflow of foreign fund to the Asian market, hence the strengthening of the Ringgit. The focus of the week will be the upcoming budget 2010, however, it may not have a great impact as the government is tightening the belt over expenditures, moreover, most major stimulus packages has already been announced.
The coming week will see the second and third liners active and dominate the volume page. Stock to watch: HIL, DXN, Notion, Glomac,UEMLand, Sunrise, TA, Genting
This week's expected range: 1238 – 1282
Today's expected range: 1250 – 1266
Resistance: 1260, 1263, 1266
Support: 1238, 1243, 1250
Disclaimer: The above is not a recommendation to buy or sell, all suggestions mentioned are purely for academic study purposes for our trend trader club members only, and the author may have personal interest and position in some of the examples mentioned. Any losses incurred if you were to trade base on the study examples above is solely your own responsibility. Do consult your dealer before taking any action
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