"T+10 interest FREE margin trading account"

Maximize your profits through the power of T+10 interest FREE margin trading account, an account which gives you more time to ride the uptrend. Absolutely interest FREE. Attractive brokerage for online trading. Get Real-time guidance from Trend Master. Call +603-5192 7249 for more details.

Wednesday, April 6, 2011

FBM KLCI - taking a breather


Stocks on Bursa Malaysia closed lower yesterday as investors took profits after recent gains. The FBM KLCI fell 2.41 points or 0.15% to 1,553.07 after opening 0.80 of a point higher at 1,556.28. Losers led gainers by 493 to 347 while 274 counters were unchanged. Turnover declined to 1.600 billion shares valued at RM1.970 billion from 1.694 billion shares worth RM2.238 billion on Monday.

The FBM KLCI opened 0.8 point higher at 1,556.28 and surged to the intra-day high of 1,557.43 within the first fifteen minutes, profit-taking activities which surfaced pressed the key index lower to the intra-day low of 1,552.27 before rebounding slightly to close off low at 1,553.07. Chart-wise, the FBM KLCI formed a small black spinning-top candlestick which is a continuation of the selling pressure on Monday, and it indicates consolidation of the key index.

MACD continued to move higher, but its histogram started to turn shorter, indicating a slow down in the upward momentum of the FBM KLCI. RSI (14) has hooked downward to 69.1 from the overbought zone, reflecting the pullback of the key index. Stochastic is lower at 91.3 and has crossed below its slow stochastic line, indicating a correction in taking place. Signals from the indicators showed that the FBM KLCI is undergoing a short term correction after the recent run-up, and the underlying market strength is still strong. Hence, the key index will continue with its uptrend after the correction is over.

The FBM KLCI is currently undergoing a pullback correction; nonetheless, its short term trend is still up. The medium term trend remained sideways as the 30-day moving average (MA) is still below the 60-day MA which is currently flat. The long term uptrend is intact. Immediate overhead resistance zone is at 1,557 to 1,577, while the immediate downside support zone is at 1,550 to 1,544. With the current daily volume of around 1.6 billion shares, the overall market is expected to remain active with rotational play on second and third liners, while key heavyweights may continue to consolidate.

Overnight, the Dow fell a marginal -6.13 points or -0.05% to close at 12,393.90. Today, the FBM KLCI is likely to trade within a range of 1,545 to 1,563.

This week's expected range: 1483 – 1599
Today’s expected range: 1545 – 1563

Resistance: 1557, 1560, 1563
Support: 1545, 1549, 1551

Stocks to watch: KIMLUN, MASTEEL, FITTERS, MITRA

No comments: