FBM KLCI - down on selling pressure

Stocks on Bursa Malaysia ended lower yesterday on selling pressure in selected blue chips, particularly plantation and finance related counters. Among the factors that contributed to the loss was investors' concern over the outlook of the US economy, rising commodity prices and the European debt woes. The FBM KLCI fell 5.85 points or 0.38% to close at 1,542.84 after opening 1.38 points higher at 1,550.07. Losers led gainers by 518 to 242 while 272 counters were unchanged. Turnover declined to 681.366 million shares worth RM1.241 billion compared with last Friday's 947.812 million shares valued at RM1.689 billion.

The FBM KLCI opened 1.38 points higher at 1,550.07 and was immediately subjected to heavy profit-taking activities which pulled the key index into the negative territory and stayed there for the rest of the day, it finally closed at the day’s low of 1,542.84. Chart-wise, the FBM KLCI formed a bearish Marubozu engulfing candlestick which indicates heavy selling pressure faced by index-related counters. The black Marubozu engulfing candlestick is a strong top reversal pattern and the FBM KLCI may further correct downward. The price action yesterday showed that the resistance at 1,550 is not easy to break through, and the key index may continue its consolidation within the triangle.

MACD was higher but is tapering off, and the histogram has also turned shorter, indicating a loss in the upward momentum. RSI (14) has pulled back to 55.9 after touching the 60 mark, indicating the key index has moved back to the mildly bullish zone. Nevertheless, Stochastic is at 82.5, and has moved into the short term overbought zone. Readings from the indicators showed that the FBM KLCI is showing a first sign of reduced upward momentum and may take a pause from its recent up move.

The short term trend of the FBM KLCI remained up as it still close above all the short term moving averages. The medium term trend remained sideways while the long term uptrend is still intact. Immediate downside support zone is at 1,540 to 1,530 while the overhead resistance zone is at 1,550 to 1,565. With the drastically reduced volume, the FBM KLCI is expected to continue with its consolidation mode.

US market was closed for Memorial Day holiday on Monday. Today, the FBM KLCI is likely to trade within a range of 1,533 to 1,557.

This week's expected range: 1508 – 1576
Today’s expected range: 1533 – 1557

Resistance: 1548, 1553, 1557
Support: 1533, 1538, 1540

FBM KLCI - gradually turning bullish

Stocks on Bursa Malaysia ended mixed last Friday with foreign investors nibbling on blue-chips, amid lack of interest for second and third liners. Buying interest continued to centre on finance, plantation and power-related stock amid positive earnings headlines and overnight Wall Street performance. The FBM KLCI closed 7.75 points or 0.5% steadier at 1,548.69, and on a weekly basis, it gained 7.56 points from previous Friday’s close of 1,541.03. Losers outpaced gainers by 464 to 314 while 300 counters were unchanged. Turnover increasing to 947.812 million shares, valued at RM1.689 billion, from Thursday's 799.622 million shares valued at RM1.42 billion. Weekly volume increased to 4.197 billion shares, valued at RM7.321 billion, from previous week’s 3.56 billion shares valued at RM6 billion.

On the weekly chart, the FBM KLCI formed a white hangman candlestick which indicates the bears were initially strong in pushing the key index to the intra-week low of 1,525.71, but the bulls later fought back and lift the key index to the positive territory to hit the intra-week high of 1,549.96 before pulling back to close at 1,548.69. The price action of the FBM KLCI indicates that the bulls have overcome selling pressure by the bears, and may continue its upward momentum to move higher this week. The FBM KLCI is currently closing above its 5 and 10-week moving averages (MA), which indicates the short term trend is up.

On the daily chart, the FBM KLCI opened last Friday with an up gap of 4.15 points at 1,545.09 and traded higher to touch the intra-day high of 1,549.96 before pulling back to close at 1,548.69. The key index formed a bullish white candlestick with a continuation gap which indicates buyers were strong and in control for the day, and hence the key index may continue with its momentum to move higher. Immediate resistance is at the psychological level of 1,550, follow by the downtrend line resistance at 1,555, and the recent high of 1,565.

Weekly MACD has curved up slightly while its histogram has continued to turn shorter upward, indicating the weekly momentum has started to show sign of turning upward. Daily MACD has continued to move higher, indicating a continuation in the daily upward momentum.

Weekly RSI (14) is higher at 58.2 which indicate the weekly relative strength of the FBM KLCI is turning mildly bullish, while daily RSI (14) has turned bullish as the reading is now at 60.4.

Weekly Stochastic has continued to rise further to 76.2 and daily Stochastic is also higher at 76.4. Both weekly and daily stochastic readings indicate a continuation in the up cycle and market strength. Readings of the indicators showed that the FBM KLCI is gradually gaining its upward momentum and is turning bullish for the short term, and the key index may continue with its current upward momentum to move higher.

The short term trend of the FBM KLCI has turned upward. However, it is currently still bound within the consolidation triangle with immediate resistance level at 1,555 posted by the downtrend line. If the FBM KLCI is able to break above 1,555 and the recent pivot high at 1,565, then it may move higher to re-test its historical high of 1,576.95, beyond this will be uncharted territory. The medium term trend is still sideways while the long term uptrend remained intact. With volume picking up again on last Friday, albeit still below the 1 billion mark, the FBM KLCI may continued its upward move to test higher resistance level.

Last Friday, the Dow rose +38.82 points or +0.31% to close at 12,441.58. This week, the FBM KLCI is likely to trade within a range of 1,508 to 1,576, and for today it is likely to trade within a range of 1,537 to 1,557.

This week's expected range: 1508 – 1576
Today’s expected range: 1537 – 1557

Resistance: 1552, 1555, 1557
Support: 1537, 1540, 1544

FBM KLCI - higher on buying support

Stocks on Bursa Malaysia finished higher yesterday as the bounce on Wall Street overnight and in oil and commodity prices encouraged investors to buy stocks after the recent sell-off. The market was recovering from the recent sell-off that was triggered by mounting concerns over the European financial woes which could derail the recovery of global growth. The FBM KLCI closed 7.37 points or 0.48% better at 1,540.94. Gainers outpaced losers by 417 to 322 while 305 counters were unchanged. Turnover increased to 799.622 million shares valued at RM1.42 billion from Wednesday’s 767.205 million shares worth RM1.4 billion.

The FBM KLCI opened with an up gap of 4.78 points at 1,538.35 and climb to the intra-day high of 1,543.63 at mid morning. It then gradually retrace on profit-taking to close the day at 1,540.94. Chart-wise, the FBM KLCI formed a bullish white candlestick which indicates the bulls were in control and continuation of the recent up move. The FBM KLCI is now closing above all the short term moving averages (MA), and hence has resumed its short term uptrend. However, the key index will have to move beyond 1,550 in order for it to breakout from the consolidation triangle.

MACD has turned upward, marking a positive pick up in market momentum. RSI (14) is at 56 and has continued to move higher into the mildly bullish zone. Stochastic has hooked up and made a cross over its slow stochastic, indicating the beginning of an up cycle after the recent retracement. Readings from the indicators showed that the FBM KLCI has just turned mildly bullish and may continue with its current upward momentum to move higher.

As the FBM KLCI is now closing above all its short term MAs, its short term trend has turned upward. The medium term trend remained sideways, while the long term uptrend is still intact. Immediate overhead resistance zone is at 1,544 to 1,555, where the upper resistance of 1,555 is the trend-line resistance, and 1,550 being the critical psychological resistance level. Immediate downside support zone is at 1,538 to 1,530.

Overnight, the Dow rose +8.10 points or +0.07% to close at 12,402.76. Today, the FBM KLCI is likely to trade within a range of 1,533 to 1,550.

This week's expected range: 1520 – 1565
Today’s expected range: 1533 – 1550

Resistance: 1544, 1547, 1550
Support: 1533, 1535, 1538

FBM KLCI - higher amid choppy trading

Stocks on Bursa Malaysia finished mixed yesterday in choppy trading. The local market traded within a tight range as most investors remained sidelined amid the lack of market moving news. Sentiment was also dampened by the slump in regional stocks and commodities coupled with mounting concern over the European financial crisis. The FBM KLCI finished 12.05 points better at 1,528.98. Losers outpaced gainers by 422 to 294 while 334 counters were unchanged. Turnover decreased to 767.205 million shares, worth RM1.4 billion, from 812.197 million shares, worth RM1.54 billion, registered on Tuesday.

The FBM KLCI opened 1.12 points higher at 1,533.24 and fell to the intra-day low of 1,530.00 before rebounding to the intra-day high of 1,537.66. However, the rebound could not sustain and profit-taking activities pressed the key index to close off high at 1,533.57. Chart-wise, the FBM KLCI formed a white spinning-top candlestick which indicates indecision of market direction, where the bulls and the bears were in almost equal control for the day, with the bulls having a slight upper hand. The benchmark index is currently stuck in a sideways range-bound situation. The FBM KLCI will have to close above 1,538 in order for it to turn uptrend for the short term.

MACD continued to slide lower but is tapering off. It is sitting just right above the signal line, and a slight down move will lead to a dead-cross over the signal line. RSI (14) is slightly higher at 51.3, indicating the key index is currently in the neutral state. Stochastic is lower at 55.6, indicating the down cycle is still in force. Readings from the indicators showed that the FBM KLCI has lost its momentum and is currently in a state of consolidation.

The short and medium term trend of the FBM KLCI is currently sideways while the long term trend as indicated by the 200-day moving average is still up. Immediate overhead resistance zone is at 1,538 to 1,550, while the immediate downside support zone is at 1,530 to 1,525. With the volume getting smaller each day, the FBM KLCI is likely to remain in its current state of sideways consolidation.

Overnight, the Dow rebounded +38.45 points or +0.31% to close at 12,394.66. Today, the FBM KLCI is likely to trade within a range of 1,522 to 1,546.

This week's expected range: 1520 – 1565
Today’s expected range: 1522 – 1546

Resistance: 1538, 1542, 1546
Support: 1522, 1526, 1529

Stocks to watch: MBSB, CUSCAPI

FBM KLCI - rebounded to close higher

Stocks on Bursa Malaysia made a recovery yesterday in the last leg of trade with most blue-chips managing to recoup their earlier losses on late buying activity. Earlier in the day, concerns about the crisis in the Euro-zone sent investors away from the stock market but buying later emerged, supported by positive earnings headlines. The FBM KLCI finished 3.14 points or 0.21% higher at 1,532.12. Advancers outpaced decliners by 437 to 312 while 311 counters were unchanged. Turnover was lower at 812.197 million shares worth RM1.54 billion from Monday’s 870.618 million shares worth RM1.3 billion.

The FBM KLCI opened 2.3 points higher at 1,531.28 but was sold down to the intra-day low of 1,525.71 within the first twenty minutes. The key index rebounded and moved gradually higher to touch the intra-day high of 1,533.22 before last minute profit-taking activity brought the index to close off high at 1,532.12. Chart-wise, the FBM KLCI formed a hammer candlestick, which is a bottom reversal candlestick pattern, it indicates the bears were initially in control but the bulls surfaced later to push up the index. With the appearance of a hammer candlestick, the benchmark index is likely to stage a rebound today. However, the short term 5 and 10-day moving averages (MA) at 1,535 and 1,537 may post as a barrier to the up move.

MACD continued to slide lower indicating the downward momentum is still in force. Nevertheless, the MACD line is still above its signal line. RSI (14) has hooked up to 50.3, indicating the key index is currently in a neutral state. Stochastic has continued to slide lower to 61.4, indicating a continuation of the down cycle. Readings from the indicators indicates that the FBM KLCI is currently weak in terms of the market strength and momentum, and might continue to consolidate.

The FBM KLCI had rebounded to close above the 20 and 30-day MAs but is below the 5 and 10-day MAs which indicates the benchmark index is in consolidation mode for the short term. The medium term trend is sideways while the long term trend is up. Immediate overhead resistance zone is at 1,535 to 1,543 while the immediate downside support zone is at 1,530 to 1,523. With the dwindling volume, the FBM KLCI is likely to continue to remain range-bound for the near term.

Overnight, the Dow fell -25.05 points or -0.20% to close at 12,356.21. Today, the FBM KLCI is likely to trade within a range of 1,519 to 1,541.

This week's expected range: 1520 – 1565
Today’s expected range: 1519 – 1541

Resistance: 1535, 1538, 1541
Support: 1519, 1522, 1527

Stocks to watch: TENAGA, TRC, PUNCAK, GSB

FBM KLCI - lower on selling pressure

Stocks on Bursa Malaysia ended on a weak note yesterday as most blue-chip counters struggled to find a footing amid volatile trade, on concerns over the Euro-zone debt crisis. Last Friday, the Fitch Ratings cut the debt ratings of Greece’s by three notches, while Standard & Poor’s slashed its outlook for Italy to “negative” from “stable”. The FBM KLCI finished 12.05 points or 0.78% lower at 1,528.98, after opening 0.24 points higher at 1,541.27. Decliners outpaced advancers by 630 to 175 while 266 counters were unchanged. Turnover was slightly higher at 870.618 million shares worth RM1.3 billion, from the 869.297 million shares valued at RM1.4 billion, recorded last Friday.

The FBM KLCI opened 0.24 point higher at 1,541.27 and surged to the intra-day high of 1,542.80 within the first fifteen minutes, but heavy selling pressure which surfaced sent the benchmark index lower to hit the intra-day low of 1,528.06 before rebounding slightly to close off low at 1,528.98. Chart-wise, the FBM KLCI formed a bearish long black candlestick which indicates sellers were dominant for the day, and the key index is likely to continue moving lower today. With the price action yesterday, the key index had closed below all its short term moving averages (MA) and fallen back to the consolidation zone. The support level at 1,523 provided by the 60 and 120-day MAs and the support at 1,515 are critical levels to watch. If the FBM KLCI breaks below these levels, it is likely to move lower to test the psychological support at 1,500.

MACD has turned southward, indicating a change in the direction of the market momentum from up to down. Nonetheless, it is still above its signal line, and the current weakness could mean just a pull back correction. RSI (14) has dropped rapidly to 48.2 from 56.7, sending the key index to the bearish bias neutral zone. Stochastic has crossed below its slow stochastic line and is at 70.7, indicating the beginning of a short term down cycle. Readings from the indicators showed that the FBM KLCI is turning bearish, and the consolidation process may prolong.

As the FBM KLCI had closed below all the short term MAs, the short term trend has turned southward. The medium term trend is still sideways, while the long term trend is still up. The long term 200-day MA is currently at 1,494. Immediate downside support zone is at 1,523 to 1,515, while the overhead resistance zone is at 1,535 to 1,541.

Overnight, the Dow fell -130.78 points or -1.05% to close at 12,381.26. Today, the FBM KLCI is likely to trade within a range of 1,508 to 1,558.

This week's expected range: 1520 – 1565
Today’s expected range: 1531 – 1555

Resistance: 1538, 1548, 1558
Support: 1508, 1518, 1523

FBM KLCI - likely to consolidate

Stocks on Bursa Malaysia ended lower last Friday despite the positive cues overnight from Wall Street with major US bellwethers finishing higher. The uncertainty and volatility of equities and commodities market were reflected in the performance of the local bourse. The market also moved in line with weaker performance in the regional markets. The FBM KLCI finished 2.99 points or 0.19% lower at 1,541.03, after opening 0.07 point higher at 1,544.09. Week-on-week, the benchmark index gained 0.29 point from previous Friday’s close of 1,540.74. Market breadth was negative with losers leading gainers 378 to 361 while 342 counters were unchanged. Trading was thin with turnover declined to 869.3 million shares valued at RM1.37 billion from 890.85 million shares worth RM1.48 billion on Thursday. Weekly volume decreased to 3.56 billion shares valued at RM6 billion from 4.71 billion shares valued at RM6.91 billion last week.

The FBM KLCI kicked off last week on a firmer footing to touch an intra-day high of 1,545.34 on Monday morning before succumbing to strong selling pressure which led the key index to close 4.47 points lower at 1,536.27. Bursa Malaysia was closed on Tuesday for a public holiday. The benchmark index rebounded on Wednesday to close 5.0 points better at 1,541.2 on bargain-hunting activities on selected key index-linked counters. The FBM KLCI continued to move higher on Thursday to hit the intra-week high of 1,550.62 before profit-taking activities caused a pullback to settle the day 2.75 points better at 1,544.02. And profit-taking activities continued into Friday which saw the key index closing 2.99 points lower at 1,541.03.

On the weekly chart, the FBM KLCI made a marginal gain of 0.29 point, and formed a Doji candlestick which indicates indecision of the benchmark index to move higher, or rather, one can say that the key index is met with heavy resistance or selling pressure when it approached the psychological resistance level of 1,550. With the formation of Doji candlestick this week, the FBM KLCI is likely to take a pause from its recent up move and consolidate itself. Immediate key resistance level is at 1,550.

On the daily chart, the FBM KLCI formed a black inverted hammer candlestick which served as a confirmation to the top reversal signal of the shooting-star candlestick formed on Thursday. Hence, the benchmark index is likely to further correct itself. Immediate support zone is at 1,538 to 1,532.

Weekly MACD has turned flat, but is still below its weekly signal line. However, the weekly histogram has turned shorter upward, indicating a slow down in the weekly downward momentum. Daily MACD has continued to climb higher, but its histogram has turned shorter downward, indicating a slow down in the daily upward momentum.

Weekly RSI (14) is at 56.8, has turned flat and remained in the mildly bullish zone. Daily RSI (14) has hooked downward to 56.7 and is still in the mildly bullish zone.

Weekly Stochastic continued to move higher to 64 from 61.7 the previous week. Daily Stochastic is marginally higher at 83.6, indicating the short term up cycle is still intact. Mixed signals from the indicators showed that the FBM KLCI is likely to continue with its current range-bound situation.

The short term trend of the FBM KLCI is currently up, while the medium term trend is sideways, and the long term uptrend is still intact. Immediate overhead resistance zone is at 1,550 to 1,565, while the immediate downside support zone is at 1,538 to 1,532. With the reducing volume, the overall market is likely to go into consolidation and remain range-bound.

Last Friday, the Dow fell -93.28 points or -0.74% to close at 12,512.04. This week, the FBM KLCI is likely to trade within a range of 1,520 to 1,565, and for today it is likely to trade within a range of 1,531 to 1,555.

This week's expected range: 1520 – 1565
Today’s expected range: 1531 – 1555

Resistance: 1546, 1550, 1555
Support: 1531, 1536, 1538

FBM KLCI - range bound with an upward bias

Stocks on Bursa Malaysia ended higher yesterday on renewed buying interest by local and foreign institutional in selected key heavyweights and second liners. The market pared gains soon after a firm start following Wall Street’s positive performance overnight. The FBM KLCI finished 2.75 points or 0.18% better at 1,544.02, after opening 2.11 points higher at 1,543.38. Advancers and decliners were equal at 371 counters, while 318 counters were unchanged. Turnover declined to 890.85 million shares worth RM1.48 billion from 993.7 million shares valued at RM1.912 billion recorded on Wednesday.

Taking cue from the steady performance of Wall Street overnight, the FBM KLCI opened with an up gap of 2.11 points higher at 1,543.38 and surged to the intra-day high of 1,550.62 within the first ten minutes. However, profit-taking activities immediately surfaced and sent the benchmark index to the intra-day low of 1,541.97 before rebounding to close at 1,544.02. Chart-wise, the FBM KLCI formed a spinning-top candlestick with a long upper shadow, which indicates selling pressure was strong when the key index approached the psychological resistance level of 1,550, and the market was hesitant to move higher. Nonetheless, the overall market sentiment is still positive, and the FBM KLCI may continue to challenge the 1,550 level today.

MACD continued to climb higher, indicating a continuation in the upward momentum. RSI (14) at 59.1 is approaching the bullish zone, which shows that the key index is gradually gaining its strength. Stochastic hooked downward slightly to 83.3, reflecting the pullback from the intra-day high. Readings from the indicators showed that the FBM KLCI is gradually gaining momentum and strength, and is poised to move higher.

The underlying short term trend of the FBM KLCI remained up, while the medium term trend is sideways, and the long term uptrend is still intact. From a broader angle, the FBM KLCI is still in a range-bound situation, where it will have to move above the 1,565 and 1,577-point level in order to breakout from the range-bound situation. Immediate overhead resistance zone is at 1,550 to 1,565, while the immediate downside support zone is at 1,537 to 1,530. With the dwindling volume, the FBM KLCI may continue to remain range-bound but with an upward bias.

Overnight, the Dow rose +45.14 points or +0.36% to close at 12,605.32. Today, the FBM KLCI is likely to trade within a range of 1,531 to 1,560.

This week's expected range: 1492 – 1575
Today’s expected range: 1531 – 1560

Resistance: 1549, 1555, 1560
Support: 1531, 1536, 1540

FBM KLCI - bullish Harami, poised to move higher.

Stocks on Bursa Malaysia closed mixed yesterday with profit-taking activities as well as bargain-hunting on selected key index-linked counters. Although stocks like Axiata, Public Bank and Digi were bearish, losses were capped by gains in CIMB, Sime Darby and Maxis. The FBM KLCI finished 5.0 points up or 0.32% better at 1,541.27, after opening 1.94 points higher at 1,538.21. Decliners outpaced advancers by 415 to 360 while 295 counters were unchanged. Turnover rose to 993.7 million shares valued at RM1.912 billion from 811.79 million shares worth RM1.23 billion recorded on Monday.

The FBM KLCI opened 1.94 points higher at 1,538.21 and surged to the intra-day high of 1,543.35 within the first thirty minutes of trading, but profit-taking which appeared quickly erode gains and pressed the key index towards the intra-day low of 1,537.33 before late buying on selected blue-chips lifted the index to close off low. Chart-wise, the FBM KLCI formed a bullish Harami candlestick pattern which is a one day reversal pattern, and hence the key index is poised to move higher. Immediate overhead resistance is at 1,545, at which the key index had failed to cross in the past two sessions. If the index is able to break above this level, it is likely to move higher to challenge the 1,550 psychological level and the recent high of 1,565.

MACD continued to climb higher, indicating a continuation in the upward momentum. RSI (14) has hooked up to 57.5, moving higher into the mildly bullish zone. Stochastic has turned upward to 84.4, indicating a pick up in the market strength and continuation of the short term up cycle. Readings from the indicators showed that the FBM KLCI is gradually turning more bullish, and hence may continue with its upward momentum to climb higher in the near term.

The short term trend of the FBM KLCI is currently up, while the medium term trend remained sideways, and the long term uptrend is still intact. The benchmark FBM KLCI has built its first base at the 1,474 to 1,500 level, and its second base at the 1,507 to 1,520 level, and looks poised to re-test its historical high. Immediate overhead resistance zone is at 1,545 to 1,565, while the immediate downside support zone is at 1,530, to 1,520.

Overnight, the Dow rose +80.60 points or +0.65% to close at 12,560.18. Today, the FBM KLCI is likely to trade within a range of 1,531 to 1,550.

This week's expected range: 1492 – 1575
Today’s expected range: 1531 – 1550

Resistance: 1544, 1547, 1550
Support: 1531, 1534, 1537

I can't access blogger.com or gmail at all while in China, Google was being blocked totally.

Some of the magnificent scenery photos of Mount Taishan, Shandong Province, China. Hope you enjoy it. (Double click on photo to enlarge)

FBM KLCI: update for Wednesday, 18-May-2011

Stocks on Bursa Malaysia closed lower on Monday in line with regional markets amid renewed concerns over economic growth. Market players opted to reduce risk in view of a possible Euro zone debt restructuring which also weighed down on the Ringgit.
The FBM KLCI finished 4.47 points or 0.29% lower at 1,536.27, after opening 1.10 points better at 1,541.84. Decliners outpaced advancers by 502 to 274 while 286 counters were unchanged. Volume was thin with turnover declined to 811.79 million shares, worth RM1.23 billion, from 1.18 billion shares, valued at RM1.71 billion, on last Friday. Bursa Malaysia was closed yesterday for Wesak Day holiday.

The FBM KLCI opened 1.10 points higher at 1,541.84 and climbed to the intra-day high of 1,545.34 in the first hour before profit-taking activities pressed it to close at the day’s low of 1,536.27. Chart-wise, the FBM KLCI formed a dark-cloud-cover candlestick which indicates selling by the bears. As the key index is still closing above the short term moving averages, the price action could mean just a profit-taking pullback after a strong up move on the previous day. The short term uptrend, nonetheless, is still intact.

MACD continued to move higher indicating a continuation in the upward momentum. RSI (14) is lower at 54.7, reflecting the pullback of the key index. Stochastic has hooked down slightly, but is still above its slow stochastic line, reflecting the pullback. Readings from the indicators showed that the FBM KLCI is undergoing a mild pullback correction. Nevertheless, the key index is still mildly bullish.

The short term trend of the FBM KLCI is currently up, while the medium term trend is sideways, and the long term uptrend still remained intact. Immediate overhead resistance zone is at 1,541 to 1,565, while the immediate downside support zone is at 1,530 to 1,521. With the dwindling volume, the FBM KLCI is likely to remain range-bound.

Overnight, the Dow fell -68.79 points or -0.55% to close at 12,479.58. Today, the FBM KLCI is likely to trade within a range of 1,524 to 1,555.

This week's expected range: 1492 – 1575
Today’s expected range: 1524 – 1555

Resistance: 1543, 1549, 1555
Support: 1524, 1530, 1533

I can't access blogger.com or gmail at all while in China, Google was being blocked totally.

Some of the magnificent scenery photos of Mount Taishan, Shandong Province, China. Hope you enjoy it. (Double click on photo to enlarge)

FBM KLCI: update for Monday, 16-May-2011

Stocks on Bursa Malaysia ended last Friday on a strong note, led by gains in selected banking and blue-chip stocks. The local bourse was also supported by Petronas' US$20 billion (RM60.2 billion) integrated refinery and petrochemicals complex development in southern Johor. The FBM KLCI finished up 8.45 points or 0.55% at 1,540.74, after opening 1.18 points higher at 1,533.47. Week-on-week, the key index gained 25.24 points or 1.7% from previous Friday’s close of 1,515.50. Advancers outpaced decliners by 499 to 258 while 303 counters traded unchanged. Turnover increased to 1.18 billion shares valued at RM1.71 billion from the 919.61 million shares worth RM1.35 billion recorded on Thursday. Weekly volume increased to 4.71 billion shares, worth RM6.91 billion, from 3.92 billion shares, worth RM5.45 billion, transacted the previous week.

The FBM KLCI opened 1.71 points higher at 1,517.21 on last Monday, and fell to the intra-week low of 1,515.39 amid bearish sentiment on concerns over the global economy, and the key index later rebounded to end the day 3.91 points higher at 1,519.41. On Tuesday, the overall market was steadier and the FBM KLCI made a gain of 3.96 points to close at 1,523.37. Bursa Malaysia continued to perform well on Wednesday on renewed buying interest in key heavyweights, especially finance and plantation counters which help pushed the key index 12.66 points higher to close at 1,536.03. After a three days rally, the FBM KLCI staged a minor pull-back on Thursday to close 3.74 points lower at 1,532.29 on renewed concerns over the Greek debt and another sell-off in commodities. The key index rebounded strongly on Friday to end 8.45 points higher at 1,540.74.

On the weekly chart, the FBM KLCI formed a bullish white candlestick which engulfed the body of previous week’s candle, and this indicates the bulls made a strong fight back after a week of suppression by the bears. With the strong upward move last week, the FBM KLCI is likely to continue its upward momentum to move higher this week to challenge the next resistance level at 1,550 and 1,565. The key index will have to close above the 1,565 level in order to breakout from its current consolidation range.

On the daily chart, the FBM KLCI formed a bullish white candlestick and closed right above its immediate resistance of 1,540.55. The key index is also closing above all its short, medium and long term moving averages, which shows that the key index is breaking out of its consolidation to move higher and is likely to re-test the next target at 1,550.

Weekly MACD has turned upward slightly, and its weekly histogram is turning shorter upward, giving out a first sign of the change in weekly market momentum. However, the weekly MACD is still below the signal line, indicating the upward move could well be just a rebound. Daily MACD, however, has crossed above the zero line, and also made a golden-cross above its daily signal line, giving out a strong buy signal.

Weekly RSI (14) has turned upward to 56.7, indicating the weekly relative strength of the FBM KLCI is turning mildly bullish from neutral a week ago. Daily RSI (14) is also climbing higher to 57.9, indicating the key index is moving into the mildly bullish zone.

Weekly Stochastic is at 61.8 and has made a crossed over its weekly slow stochastic line, indicating a pick up in the weekly upward strength and resumption of the weekly up cycle. Daily Stochastic continued to surge higher and crossed above the 80 level to reach 83.3, indicating the short term strength is turning strong. Readings from the indicators showed that the FBM KLCI is turning bullish for the short term, while its weekly signal is also about to turn bullish. Hence, the key index may continue with its upward momentum to re-test higher targets this week.

The FBM KLCI is currently closing above all its short, medium and long term moving averages which indicates the benchmark index is starting to turn bullish after a long consolidation. The short term trend has turned up, while the medium term trend is still sideways, and the long term uptrend remained intact. Immediate overhead resistance zone is at 1,545 to 1,565, while the immediate downside support zone is at 1,532 to 1,521

Last Friday, the Dow fell -100.17 points or -0.79% to close at 12,595.75. This week, the FBM KLCI is likely to trade within a range of 1,492 to 1,575, and for today it is likely to trade within a range of 1,521 to 1,558.

This week's expected range: 1492 – 1575
Today’s expected range: 1521 – 1558

Resistance: 1547, 1552, 1558
Support: 1521, 1527, 1534

I can't access blogger.com or gmail at all while in China, Google was being blocked totally.

Some of the magnificent scenery photos of Mount Taishan, Shandong Province, China. Hope you enjoy it. (Double click on photo to enlarge)

FBM KLCI: update for Friday, 13-May-2011

Stocks on Bursa Malaysia ended on an easier note yesterday in line with the lower regional markets, led by losses in key heavyweights. Renewed concerns over the Greek debt and another sell-off in commodities led investors to exit from riskier assets, including stocks. The FBM KLCI fell by 3.74 points, or 0.24%, to close at 1,532.29, after opening 2.61 points lower at 1,533.42. Losers outnumbered gainers by 448 to 304, while 282 counters were traded unchanged. Total volume declined to 919.61 million shares valued at RM1.35 billion from 1.05 billion shares valued at RM1.63 billion on Wednesday.

The FBM KLCI opened 2.61 points lower at 1,533.42 and throughout the session, the benchmark index stayed in negative territory and moved within a tight range of between 1,532.10 and 1,535.71. Chart-wise, The FBM KLCI formed a small black spinning-top candlestick which indicates indecision and consolidation of the key index after a strong move the day before. The FBM KLCI is likely to consolidate itself today.

MACD continued to move higher, but is still below the zero-line and the signal line. However, just a slight gain in the FBM KLCI today will see the MACD making a golden cross over its signal line as well as crossing above the zero-line, which will be a positive sign for the key index. RSI (14) has hooked down slightly to 53, indicating the benchmark index is currently in a neutral zone with bullish bias. Stochastic has continued to climb higher to 69.6, indicating the short term up cycle is still intact. Readings from the indicators showed that the FBM KLCI is in a consolidation mode with an upward bias.

The short term trend of the FBM KLCI remained up, and the medium term trend is sideways, while the long term uptrend is still intact. The FBM KLCI is likely to be range-bound with immediate overhead resistance zone is at 1,536 to 1,541, while the immediate downside support zone is at 1,528 to 1,520.

Overnight, the Dow rose +65.89 points or +0.52% to close at 12,695.92. Today, the FBM KLCI is likely to trade within a range of 1,527 to 1,540.

This week's expected range: 1472 – 1551
Today’s expected range: 1527 – 1540

Resistance: 1535, 1537, 1540
Support: 1527, 1529, 1531

I can't access blogger.com or gmail at all while in China, Google was being blocked totally.

Some of the scenery photos of Mount Taishan, Shandong Province, China. Hope you enjoy it. (Double click on photo to enlarge)

FBM KLCI: update for Thursday, 12-May-2011

Stocks on Bursa Malaysia ended broadly higher yesterday on renewed buying interest in key heavyweights, especially finance and plantation counters. Sentiment was fuelled by positive showing in Asian bourses, firmer close on Wall Street overnight, strong economic data from China and also higher commodity prices. The FBM KLCI soared 12.66 points or 0.8% to 1,536.03 after opening 2.35 points higher at 1,525.72. Market breadth was positive with gainers overwhelming losers by 594 to 202 while 285 counters were unchanged. Total volume increased to 1.05 billion shares valued at RM1.63 billion from Tuesday’s 847.99 million shares worth RM1.15 billion.

The FBM KLCI opened with an up gap of 2.35 points at 1,525.72 and climbed to the intra-day high of 1,538.54 before profit-taking activities pressed it down to close off high at 1,536.03. Chart-wise, the FBM KLCI formed a bullish long white candlestick which indicates buyers were in control for the day, and is likely to continue to move higher today. The key index will have to close above the resistance level at 1,541 and 1,565 in order for it to breakout from its current downtrend.

MACD has turned upward, indicating a pick up in the upward momentum. Nonetheless, it is still below the zero-line and the signal-line, and hence the up turn could be just a technical rebound until it crosses above both lines. RSI (14) is higher at 55.7, indicating a pick up in the market strength to the mildly bullish level. Stochastic has crossed above its slow stochastic line and is at 56.6, indicating a continuation in the short term up cycle and improved market strength. Readings from the indicators showed that the FBM KLCI is gradually turning from mildly bearish to mildly bullish. However, more data is required for confirmation.

The FBM KLCI is currently closing above all its short, medium and long term moving averages. The short term trend has just turned upward. However, the medium term trend remained sideways, while the long term uptrend is still intact. Immediate overhead resistance zone is at 1,539 to 1,565, while the downside support zone is at 1,525 to 1,507.

Overnight, the Dow fell -130.33 points or -1.02% to close at 12,630.03. Today, the FBM KLCI is likely to trade within a range of 1,515 to 1,551.

This week's expected range: 1472 – 1551
Today’s expected range: 1515 – 1551

Resistance: 1541, 1546, 1551
Support: 1515, 1520, 1528

I can't access blogger.com or gmail at all while in China, Google was being blocked totally.

Some of the scenery photos of Qingdao City, China. Hope you enjoy it. (Double click on photo to enlarge)