As expected, FBM KLCI corrected yesterday. The 30 counters benchmark index was down 7.18 points or -0.57% to 1259.92. As a result of the 5% RPGT announced last Friday and be effective 1 Jan 2010, property counters and builders were being sell down. IGB -0.14 @2.00, IJMLAND -0.12 @2.37, SUNRISE -0.11 @2.28, E&O -0.08 @1.15, GAMUDA -0.05 @3.29, IJM -0.07 @4.86.
KLCI open yesterday on the positive side, but slid all the way down to close at the lowest of the day, forming a bearish engulfing candlestick pattern which indicates there might be further downside ahead. Losers led gainers at 496 to 195, with 192 counters unchanged. Volume reduced greatly to 681 million shares traded. MACD, RSI and Stochastic continue to slide down, indicating weakening in momentum and market strength. The index has been congesting in the range of 1257 to 1270; a break below 1257 may see it slide further down to 1250, a critical support level.
Today, the market is expected to trade within the range of 1249 – 1265, with immediate resistance at 1265, and support is at 1257 and 1255.
This week's expected range: 1244 – 1285
Today's expected range: 1249 – 1265
Resistance: 1265, 1270, 1275
Support: 1250, 1255, 1257
Stock to watch: HIL
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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