Millionaire Trend Trader: KLCI reverse up

Thursday, November 5, 2009

KLCI reverse up

Despite overnight’s lower close of the Dow, shares on Bursa Malaysia closed broadly higher yesterday, Nov 4. FBM KLCI opened higher and traded upward to close at 1253.84, the highest level of the day, up 11.52 point or 0.93%, with notable gains in PPB, DiGi, Public Bank, HL Bank, Tanjong and Genting. Market breadth was positive with 489 gainers to 193 losers, 219 counters were unchanged. Volume traded was higher at 1.2562 billion shares, with bulk of interest in the lower liner stocks.

Technically, the FBM KLCI formed a bullish Marubozu candle, confirming the bottom reversal signal generated by the white hammer candlestick formed on Monday. At 1253.84, the KLCI has closed above the short term 10-days moving average, breaking out from its congestion range at the 1240 level. MACD and its histogram has moved higher, RSI at 61 compared with 53 yesterday is turning stronger, and Stochastic has also hook up to cross its %D line, all these indicators are indicating a positive change in the direction of the FBM KLCI.

Today, the FBM KLCI is expected to trade within the range of 1246 to 1265, with support at 1246 and 1239, and resistance at 1257, 1261 and 1265.

This week's expected range: 1200 – 1271
Today's expected range: 1246 – 1265

Resistance: 1257, 1261, 1265
Support: 1235, 1239, 1246

Stock to watch: MSPORTS

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Thursday, November 5, 2009

KLCI reverse up

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