Millionaire Trend Trader: FBM KLCI

Wednesday, January 11, 2012

FBM KLCI - marginally higher

Stocks on Bursa Malaysia ended marginally steady after trading mixed throughout the day, with the FBM KLCI gaining a meager 0.26 of a point to end at 1,521.99. Positive industrial production index and manufacturing sales data, coupled with stronger Chinese and European equity markets aided the bourse's undertone. Gainers thumped losers by 416 to 330 while 346 counters were unchanged. Turnover rose to 1.858 billion shares worth RM1.872 billion, from Monday's 1.643 billion shares worth RM1.706 billion.

The FBM KLCI opened 1.98 points lower at 1,519.75 and slid to the intra-day low of 1,518.76. It then rebounded and moved higher gradually in a tight range to touch the intra-day high of 1,524.10 before pulling back on last minute profit-taking activity to close marginally higher. Chart wise, the FBM KLCI formed a small white spinning-top candlestick which indicates low volatility and consolidation, but with an upward bias. The key index was taking a breather after recovering from the correction last week and is poised to move higher.

MACD was higher but its histogram was shorter, indicating the momentum was still up but internal weakness was surfacing. RSI (14) was flat at 63.5, reflecting the consolidation but the key index is still in the bullish zone. Stochastic was marginally higher at 82.9, indicating the rebound is still intact. Readings from the indicators showed that the FBM KLCI was in a consolidation mode but with an upward bias.
The trend of the FBM KLCI remained up but it is lacking in momentum, and hence, the key index might continue to be in a range-bound consolidation mode. Immediate overhead resistance zone is at 1,525 to 1,530 while the downside support zone is at 1,518 to 1,513. With the volume continue to pick up, the current rotational play on the second and third liners is expected to continue. Overnight, the Dow rose +69.78 points or +0.56% to close at 12,462.47. Today, the FBM KLCI is likely to trade within a range of 1,513 to 1,530.

This week's expected range: 1479 – 1549
Today’s expected range: 1513 – 1530

Resistance: 1525, 1527, 1530
Support: 1513, 1516, 1519

Stocks to watch: CBIP, MAYBULK, MBSB, ZHULIAN, VERSATL, CENSOF

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Wednesday, January 11, 2012

FBM KLCI - marginally higher

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