Millionaire Trend Trader: FBM KLCI

Tuesday, April 5, 2011

FBM KLCI - almost unchanged

Stocks on Bursa Malaysia ended the yesterday in positive territory despite some profit taking after earlier gains. The FBM KLCI edged up 0.10 of a point or 0.01% to 1,555.48 after opening 6.56 points higher at 1,561.94. Gainers outnumbered losers by 486 to 370 while 282 counters were unchanged. Turnover increased to 1.694 billion shares valued at RM2.238 billion from 1.518 billion shares worth RM2.152 billion last Friday.

The FBM KLCI opened with an up gap of 6.56 points at 1,561.94 and surged to the intra-day high of 1,565.04 within the first fifteen minutes. Profit-taking activities which surfaced immediately pushed the key index southward into the negative territory to touch the intra-day low of 1,553.82 before rebounding to close at 1,555.48. Chart-wise, the FBM KLCI formed a black candlestick in star position which indicates heavy profit-taking activities by investors after the key index run up consecutively for four days, and hence, the FBM KLCI is likely to further consolidate itself.

MACD continued to climb higher, indicating a continuation of the upward momentum. RSI (14) is flat at 71.1 after entering the short term overbought zone. Stochastic at 95.9 has, however, hooked downward but is still above its slow stochastic line, may forewarn of a possible pullback. Readings of the indicators showed that the FBM KLCI is short term overbought, and may correct itself.

The short term trend of the FBM KLCI is currently up, and the medium term trend is sideways while the long term uptrend remained intact. Immediate overhead resistance zone is at 1,560 to 1,577, while the downside support zone is at 1,545 to 1,530. The overall market is expected to remain active with rotational play on second and third liners while the heavyweights consolidate.

Overnight, the Dow rose +23.31 points or +0.19% to close at 12,400.03. Today, the FBM KLCI is likely to trade within a range of 1,539 to 1,577.

This week's expected range: 1483 – 1599
Today’s expected range: 1539 – 1577

Resistance: 1563, 1570, 1577
Support: 1539, 1546, 1551

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Tuesday, April 5, 2011

FBM KLCI - almost unchanged

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