Millionaire Trend Trader: FBM KLCI - higher on continued buying support

Thursday, December 30, 2010

FBM KLCI - higher on continued buying support

Stocks on Bursa Malaysia closed broadly higher yesterday as investors continued to pick up selected heavyweight stocks, signaling the possibility of a pre-new year rally. The FBM KLCI closed 6.9 points or 0.45% higher at 1524.34. Its all-time high was 1528.01, recorded on Nov 10. Winners thumped losers by 468 to 294 while 314 counters were unchanged. Total volume rose to 908 million shares valued at RM1.394 billion from 822 million shares worth RM1.22 billion on Tuesday.

The FBM KLCI opened 3.01 points higher at 1520.45 and surged to the intra-day high of 1526.93 within the first 30 minutes of the morning session. Active profit-taking activities immediately pressed the key index lower and the key index hovers between 1520.19 and 1526.93 for the rest of the day. Chart-wise, the FBM KLCI formed a bullish white candlestick which indicates strong continuous buying strength which helped to push the benchmark index higher. The key index is now just 3.67 points below the historical highest close of 1528.01, and, there is a high possibility that the benchmark index may close at the highest level for the year, as today will be the last trading day for the year. Meanwhile, the Prime Minister had just declared tomorrow, Friday as a public holiday to celebrate Malaysia’s first ever victory in the Asean Football Federation (AFF) Suzuki Cup 2010 championship last night in Jakarta.

MACD continued to move higher, as shown by the longer histogram, indicating a pick up in the upward momentum. RSI (14) had moved higher to 62.5, back to the bullish zone. Stochastic surged up to 76.7, indicating the continuation of the upward strength and the up cycle. Readings from the indicators shown that the FBM KLCI has again turned bullish, and hence, there could be more upside to come.

With the FBM KLCI closing above the resistance level of 1523, the short term trend of the benchmark index has turned up, and is likely to continue moving higher, and the medium and long term uptrend remained intact. Immediate strong overhead resistance zone is now at 1528 to 1532, while the downside support zone is at 1509 to 1500.

Overnight, the Dow rose +9.84 points or +0.09% higher to close at 11,585.38. Today, the FBM KLCI is likely to trade within a range of 1513 to 1534.

This week's expected range: 1471 – 1544
Today’s expected range: 1513 – 1534

Resistance: 1528, 1531, 1534
Support: 1513, 1517, 1520

1 comment:

Jim Cheng said...: To all blogger, wishing you Happy New Year.

Well wishing from
http://stockmarkettalks.blogspot.com/; December 31, 2010 at 7:21 PM

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Thursday, December 30, 2010

FBM KLCI - higher on continued buying support

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