Millionaire Trend Trader: KLCI - consolidation with downward bias

Friday, November 20, 2009

KLCI - consolidation with downward bias

The long awaited debut of the country’s largest mobile operator, MAXIS Berhad fails to lift sentiments of the overall market yesterday. The general market was very much in a consolidation mood, with the FBM KLCI drifting in a narrow range in and out of the positive territory. Last minute buying of some key heavyweights lifted the benchmark index to close at 1276.65, gaining 1.55 points or 0.12%. Losers outnumbered gainers by 457 to 238 while 245 counters were unchanged. Turnover increased significantly to 1.3516 billion shares with MAXIS alone accounting for almost 23% of the total volume.

Chart wise, the FBM KLCI formed a small body white candlestick which indicates consolidation. MACD continue to slide down gradually indicating a reduction in momentum. RSI was almost flat, while Stochastic at 79.6 has just come below the bullish 80 level; a slight weakness today may see it coming down further. Nonetheless, the underlying uptrend as indicated by the moving averages is still intact.

Today, the FBM KLCI is expected to trade within the range of 1268 to 1282, immediate support for the KLCI is at 1270.

This week's expected range: 1250 – 1299
Today's expected range: 1268 – 1282

Resistance: 1278, 1280, 1282
Support: 1268, 1270, 1273

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Friday, November 20, 2009

KLCI - consolidation with downward bias

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