Millionaire Trend Trader

FBM KLCI - higher amid consolidation mode

2012-01-27T08:43:00.003+08:00

Stocks on Bursa Malaysia ended in the positive territory on continued buying interest for finance and plantation counters. Market sentiment was also in tandem with the bullish start on the European stock market buoyed by the US Federal Reserve’s announcement that it would likely keep interest rates low until 2014. The FBM KLCI ended 4.1 points or 0.27% higher at 1,523.86 after opening 0.91 point higher at 1,520.67. Gainers overwhelmed losers by 524 to 233 with 305 counters unchanged. A total of 1.96 billion shares, worth RM1.69 billion, were transacted compared with 1.34 billion shares, worth RM1.54 billion, registered on Wednesday.

The FBM KLCI opened 0.91 of a point higher at 1,520.67 and moved in a tight range in the positive territory between the intra-day low of 1,519.86 and the high of 1,523.86 throughout the day. Chart wise, the FBM KLCI formed a small white candlestick in bullish Harami position which indicates consolidation with an upward bias. The key index continued to move within the triangle pattern with immediate overhead resistance at 1,527 while the downside support is at 1,515.

MACD continued to slide lower but its histogram was slightly taller indicating a slow down in the downward momentum and sign of a possible up swing. RSI (14) hooked upward to 60.2, indicating the short term relative strength of the key index has again moved into the bullish zone. Stochastic continued to climb higher to 79.2, indicating an improvement in the market strength and continuation of the short term up cycle. Readings from the indicators showed that the FBM KLCI is gradually turning stronger and likely to move out of the current consolidation mode soon.

The short term trend of the FBM KLCI is sideways range-bound but with an upward bias, while the longer term trend still remained up. Immediate overhead resistance zone is at 1,527 to 1,530, and a breakout from this resistance zone is likely to see the key index moving higher towards the next target level of 1,550. Judging from the overall volume of nearly 2 billion shares yesterday, the market is likely to remain active with rotational play on second and third liners while the key heavyweights might continue to consolidate.

Overnight, the Dow fell -22.33 points or -0.18% to close at 12,734.63. Today, the FBM KLCI is likely to trade within a range of 1,517 to 1,528.

This week's expected range: 1499 – 1537
Today’s expected range: 1517 – 1528

Resistance: 1526, 1527, 1528
Support: 1517, 1518, 1521

Stocks to watch: KNM, 3A, NAIM, REDTONE

FBM KLCI - lower on profit-taking correction

2012-01-26T08:47:00.001+08:00

Stocks on Bursa Malaysia closed mixed yesterday with second and third liners making gains while heavyweights, CIMB, Petronas Chemicals and Maybank, were in the red. Trading was mild as most investors were still away for the Chinese New Year holidays. The FBM KLCI ended 2.9 points or 0.19% lower at 1,519.76, after opening 1.04 points higher at 1,523.7. Gainers overwhelmed losers by 389 to 315 with 296 counters unchanged. Some 1.34 billion shares, worth RM1.54 billion, changed hands compared with 1.65 billion shares, worth RM1.49 billion, registered last Friday.

The FBM KLCI opened 1.04 points higher at 1,523.70 and surged to the intra-day high of 1,527.57 within the first thirty minutes, and profit-taking activity immediately surfaced which pushed the key index into the negative territory and stayed there for the rest of the day. The key index hit the intra-day low of 1,518.35 before rebounding slightly to close off low. Chart wise, the FBM KLCI formed a bearish black inverted hammer in dark-cloud-cover pattern which indicates profit-taking activity was dominant yesterday, and the key index is likely to further consolidate today. Immediate downside support zone is at 1,516 to 1,509.

MACD continued to slide lower, albeit still above the zero-line, indicates a loss in the market momentum. RSI (14) hooked downward to 58.2, reflecting the pulled back in the index yesterday and falling of the relative strength to the mildly bullish zone. Stochastic, however, continued to move higher to 67.6 after crossing the slow stochastic line, indicating a possible continuation of the short term up cycle. Mixed signals from the indicators showed that the FBM KLCI might continue to consolidate in the short term.

The short term trend of the FBM KLCI is in sideways range-bound as the key index continues to stay within the triangle pattern with immediate overhead resistance at 1,530 and the downside support at 1,502. The medium to longer term trend, nonetheless, remained up. The overall market is likely to continue to be dominated by active trading in the third liners and penny stocks while the blue-chips continue to consolidate. Overnight, the Dow rebounded +81.21 points or +0.64% to close at 12,756.96. Today, the FBM KLCI is likely to trade within a range of 1,507 to 1,537.

This week's expected range: 1499 – 1537
Today’s expected range: 1507 – 1537

Resistance: 1526, 1532, 1537
Support: 1507, 1512, 1516

Stocks to watch: NAIM, MAS, BHIC, MAYBULK, 3A

FBM KLCI - likely to extend consolidation with an upward bias

2012-01-25T08:50:00.001+08:00

Stocks on BURSA Malaysia closed higher last Friday on good buying momentum as investors found bargains in heavyweight counters despite some profit-taking ahead of the extended weekend. Sentiment was lifted by a bullish regional performance after overnight gains on Wall Street and solid demand for Spanish and French bonds. The market was closed on Monday and Tuesday for the Chinese New Year celebrations. The FBM KLCI rose 5.85 points or 0.39% to 1,522.66 after opening 1.33 points higher at 1,518.14. Week-on-week, the key index lost 0.41 point from previous Friday’s 1,523.07. Market breadth was positive with gainers led losers by 512 to 249. Turnover was lower with 1.65 billion shares worth RM1.49 billion changed hands compared with 1.94 billion shares worth RM1.62 billion on Thursday. Total weekly volume declined to 7.96 billion shares worth RM7.86 billion from 8.6 billion shares worth RM8.5 billion last week.

The FBM KLCI was basically in a sideways consolidation mode last week, and it entered the third week of consolidation since the beginning of the new year. The FBM KLCI opened on last Monday with a down gap of 2.68 points at 1,520.39 and closed at the intra-week low of 1,509.06. The key index rebounded on Tuesday with a gain of 10.30 points to 1,519.36. On Wednesday, the key index gave back 1.98 points to close at 1,517.38, and closed almost flat on Thursday with a marginal of 0.57 point lower at 1,516.81. On Friday, the FBM KLCI moved higher to end the week near the intra-week high at 1,522.66.

On the weekly chart, the FBM KLCI formed a white hammer candlestick which indicates the bears were initially dominant in pushing the key index down but the bulls later came in to support and pushed up the index. The price action showed that the FBM KLCI was still basically in a range-bound sideways consolidation last week but with an upward bias. Immediate overhead resistance zone is at 1,526 to 1,530. If the key index is able to break through this resistance zone convincingly with volume, then it is likely that it may rally towards the next target level of 1,550.

On the daily chart, the FBM KLCI formed a bullish white candlestick on Friday and closed near the intra-day high. Hence, the key is likely to continue with it upward momentum to move higher today. Immediate resistance levels are anticipated at 1,526 and 1,530-point level.

Weekly MACD continued to climb higher, but the weekly histogram was slightly shorter, indicating weakness is surfacing in the weekly chart. On the contrary, daily MACD continued to slide lower, but its histogram has turned shorter upward, indicating a possible rebound ahead. Weekly RSI (14) was flat at 56.6, reflecting the consolidation mode. Daily RSI (14) was higher at 60.1, indicating the daily relative strength has returned to the bullish zone. Weekly Stochastic was lower and has just made a crossed below the weekly slow stochastic line, giving out a first signal that the up cycle on the weekly chart is probably coming to an end and may go into a consolidation. Daily Stochastic, nonetheless, has continued to move higher and crossed above the daily slow stochastic line, indicating a possible beginning of an up cycle on the daily chart. Readings from the weekly and daily indicators showed that the FBM KLCI was having conflicting signals, in which the key index might continue to consolidate on the weekly perspective, while on the daily perspective, it may stage a rebound.

The short term trend of the FBM KLCI has turned sideways as key index’s daily chart is forming a triangle chart pattern since its close at 1,530.73 on the 30th December 2011, if the key index is able to breakout from this triangle consolidation pattern with volume, it may have a possible target of 1,585. The longer term trend, nevertheless, remained up.
Overnight, the Dow fell -33.07 points or -0.26% to close at 12,675.75. This week, the FBM KLCI is likely to trade within a range of 1,499 to 1,537, and for today, it is likely to trade within a range of 1,512 to 1,530.

This week's expected range: 1499 – 1537
Today’s expected range: 1512 – 1530

Resistance: 1525, 1527, 1530
Support: 1512, 1514, 1518

Happy Chinese New Year 2012

2012-01-23T10:58:00.002+08:00

May the Year of the Water Dragon brings U and Your family Good Health, Happiness and Prosperity. Gong Xi Fa Cai

FBM KLCI - flat in mixed market

2012-01-20T08:53:00.001+08:00

Stocks on Bursa Malaysia closed mixed yesterday on mild profit-taking ahead of the long Chinese New Year weekend. However, losses were limited amid investor interest in smaller cap stocks. The market was supported by improved risk appetite after the International Monetary Fund said it was planning a large expansion in its lending pool to safeguard the global economy against the worsening Euro-zone debt crisis. The FBM KLCI ended 0.57 point lower at 1,516.81 after opening 1.58 point lower at 1,515.80. Gainers led losers by 378 to 370 while 325 were unchanged. Turnover increased to 1.936 billion shares valued at RM1.618 billion as compared with Wednesday’s 1.490 billion shares worth RM1.599 billion.

The FBM KLCI opened 1.58 point lower at 1,515.80 but surged to the intra-day high of 1,522.32 in the first fifteen minutes of trade. However, profit-taking activity which surfaced pressed the key index southward for the rest of the day to hit the intra-day low of 1,514.04 before rebounding to close almost unchanged. Chart wise, the FBM KLCI formed a white inverted hammer candlestick which indicates the bulls were initially trying to take control but the bears later came out to press the index back to where it started. Hence, the FBM KLCI is likely to extend its range-bound consolidation but with an upward bias.

MACD continued to slide lower, indicating a continued loss in the index’s momentum. However, as MACD is still above the zero-line, the current weakness is view as a short term consolidation. RSI (14) was marginally lower at 57.5, reflecting the mild loss in the index and showed that the key index is still in the mildly bullish zone. Stochastic, however, has hooked upward to 60.3, showing sign that a possible rebound may take place. Readings from the indicators showed that the FBM KLCI is currently undergoing a short term consolidation process.

The immediate short term trend of the FBM KLCI has turned into sideways range-bound as it is capped on top by the 5 and 10-day SMA but was supported below by the 20 and 30-day SMA, but the longer term trend still remained up. Immediate overhead resistance zone is at 1,522 to 1,530 while the downside support zone is at 1,509 to 1,501. A breakout is either one direction will see the FBM KLCI continue moving in that direction.
As Bursa Malaysia is close for the Chinese New Year holiday on next Monday and Tuesday, the overall market is likely to remain as it is, and we like to take this opportunity to wish all our readers “Gong Xi Fa Cai” and may the year of the Dragon brings you and your family good health, happiness and prosperity.

Overnight, the Dow rose +46.24 points or +0.37% to close at 12,625.19. Today, the FBM KLCI is likely to trade within a range of 1,504 to 1,531.

This week's expected range: 1502 – 1540
Today’s expected range: 1504 – 1531

Resistance: 1521, 1526, 1531
Support: 1504, 1509, 1513

Stocks to watch: UNISEM, MPI, DKSH

FBM KLCI - in consolidation mode

2012-01-19T08:39:00.001+08:00

Stocks on Bursa Malaysia closed on a weak note yesterday with investors turning cautious ahead of the long Chinese New Year holiday next week. However, losses on the local bourse were limited as risk appetite improved amid positive regional performance after strong German economic data and better-than-expected China’s growth figures. Investors’ interest was confined to plantation-related and smaller cap stocks. The FBM KLCI declined 1.98 points or 0.13% to close at 1,517.38 after opening 2.27 points lower at 1,517.09. Market breadth was positive with 368 gainers and 364 losers while 359 counters were unchanged. Trading volume was higher at 1.49 billion shares worth RM1.60 billion, as compared to Tuesday’s 1.44 billion shares worth RM1.79 billion.

The FBM KLCI opened 2.27 points lower at 1,517.09 and was basically moving in a sideways range-bound mode in the negative territory between the high of 1,519.23 and the low of 1,513.38 throughout the day. Chart wise, the FBM KLCI formed a Doji candlestick which indicates uncertainty and indecision of market direction. With the low volatility yesterday, the key index is likely to remain range-bound today with an immediate overhead resistance at 1,521 and a lower support at 1,509.

MACD continued to slide lower, indicating a continued loss in momentum for the short term. Nevertheless, as MACD is still above the zero-line, the current weakness may just be a short term correction. RSI (14) was slightly lower at 57.8, reflecting the mild pulled back in the index yesterday, and the key index is still mildly bullish. Stochastic continued to slide lower to 57.6, indicating a continued loss in market strength and continuation in the short term down cycle. Readings from the indicators showed that the FBM KLCI is currently in a short term consolidation mode.

The immediate short term trend of the FBM KLCI is currently down, as the key index continued to close below the 5 and 10-day SMA. However, the longer term uptrend is still intact. Immediate downside support zone is at 1,509 to 1,501 while the overhead resistance zone is at 1,521 to 1,530. The overall market is likely to remain dominated by the third liners and penny stocks while the index-linked counters are likely to continue with their consolidation. Overnight, the Dow rose +96.88 points or +0.78% to close at 12,578.95. Today, the FBM KLCI is likely to trade within a range of 1,501 to 1,526.

This week's expected range: 1502 – 1540
Today’s expected range: 1508 – 1526

Resistance: 1520, 1523, 1526
Support: 1508, 1510, 1514

FBM KLCI - a technical rebound

2012-01-18T08:49:00.003+08:00

Stocks on Bursa Malaysia closed higher yesterday on fresh buying interest in selected heavyweights amid recent losses. The market sentiment was lifted by the stronger-than-expected economic data from China which boosted market confidence and prompted investors to take positions. The key FBM KLCI gained 10.30 points or 0.68% to 1,519.36 after opening 0.55 of a point higher at 1,509.61. Market breadth was positive with 433 gainers and 330 losers. Trading volume rose to 1.44 billion shares worth RM1.79 billion as compared with Monday’s 1.43 billion shares worth RM1.36 billion.

The FBM KLCI opened 0.55 of a point higher at 1,509.61, the low of the day, and moved higher gradually to hit the intra-day high of 1,520.27 before pulling back slightly to close at 1,519.36. Chart wise, the FBM KLCI formed a bullish white candlestick in Harami position which indicates a counter-attack of the bulls after a day of retreat, and the key index is likely to climb higher today on follow through momentum. Immediate overhead resistance zone is at 1,521 to 1,526. If the FBM KLCI is able to breakthrough this zone, then it might move higher to re-test the next resistance level at 1,530-point.

MACD continued to slide lower after making the dead-cross, indicating a continued loss in momentum. RSI (14) hooked up to 59 from 54.6, indicating a recovery of some loss strength, but is still in the mildly bullish zone. Stochastic continued to slide lower to 65, indicating a continued loss in the market strength and continuation of the down cycle. Readings from the indicators showed that the FBM KLCI is losing its momentum and is likely to continue with its consolidation until clear sign of reversal is observed.

The immediate short term trend of the FBM KLCI is down; nonetheless, the longer term trend remained up. Immediate downside support zone is at 1,509 to 1,501 while the overhead resistance zone is at 1,526 to 1,530. With the losing momentum, the FBM KLCI is likely to move range-bound within these range until a clear sign of breakout is observed. Overnight, the Dow rose +60.01 points or +0.48% to close at 12,482.07. Today, the FBM KLCI is likely to trade within a range of 1,501 to 1,531.

This week's expected range: 1502 – 1540
Today’s expected range: 1501 – 1531

Resistance: 1524, 1528, 1531
Support: 1501, 1505, 1512

Stocks to watch: HAIO, MAYBULK, PMETAL, E&O, 3A

FBM KLCI - lower on profit-taking correction

2012-01-17T08:53:00.001+08:00

Stocks on Bursa Malaysia closed lower yesterday amid renewed worries over the Euro-zone debt crisis. The Euro-zone effects spread across Asia after Standard & Poor's downgraded its ratings on nine countries including France, Italy and Spain. The FBM KLCI lost 14.01 points or 0.92% to 1,509.06 after opening 2.68 points lower at 1,520.39. Market breadth was bearish with 542 losers and 207 gainers while 259 counters were unchanged. Turnover was lower with 1.435 billion shares valued at RM1.363 billion changed hand compared with 1.766 billion shares worth RM1.608 on Friday.

The FBM KLCI opened with a down gap of 2.68 points at 1,520.39 and slid lower throughout the day with weak intermittent rebound, and the key index ended the day at its lowest point. Chart wise, the FBM KLCI formed a bearish long black candlestick which indicates the bears were in full control for the day. With a downside breakaway gap and closing below the 5 and 10-day SMA, the key index is likely to continue its down move to test the immediate lower support zone of 1,506 to 1,501.

MACD continued to slide lower, and has just made a dead-cross over the signal-line, giving out a sell signal. Nevertheless, as MACD is above the zero-line, the current bearish signal may well be just a correction is an uptrend. RSI (14) has plunged lower to 54.6, indicating the short term relative strength of the key index has turned mildly bullish from bullish. Stochastic has also slid below the slow stochastic line to 73.2, indicating the beginning of a down cycle and weakening of the market strength. Readings from the indicators showed that the FBM KLCI has turned weak or bearish for the immediate short term, and may lead into a further correction.

The immediate short term trend of the FBM KLCI has turned down, as the key index is now closing below the very short term 5 and 10-day SMA. The short and medium term trend represented by the 30 and 60-day SMA is still up. Immediate down side support zone is at 1,506 to 1,501 provided by a cluster of long term moving averages, while the upside resistance zone is at 1,515 to 1,521. As long as the FBM KLCI does not close below the psychological support of 1,500-point level, the current down trend is viewed as just a correction to the recent uptrend.

Overnight, US market as closed for a public holiday. The Europe market was generally up. Today, the FBM KLCI is likely to trade within a range of 1,492 to 1,533.

This week's expected range: 1502 – 1540
Today’s expected range: 1492 – 1533

Resistance: 1518, 1526, 1533
Support: 1492, 1500, 1505

FBM KLCI - likely to further consolidate

2012-01-16T08:49:00.002+08:00

Stocks on Bursa Malaysia closed marginally softer across the board last Friday. The market traded within a narrow range amid a lack of fresh leads, while investors nibbled at the lower liners and penny stocks. The FBM KLCI ended 2.49 points or 0.16% lower at 1,523.07, and week-on-week, the key index gained 8.94 points from previous Friday’s 1,514.13. Losers led gainers by 397 to 373 while 339 counters were unchanged. Turnover was higher at 1.766 billion shares valued at RM1.608 billion compared with Thursday’s 1.515 billion shares worth RM1.579 billion.

The FBM KLCI was basically in a range-bound consolidation mode with a weak upward move the whole of last week. The key index opened last Monday 0.93 point higher at 1,515.06 and pulled back to touch the intra-week low of 1,513.35 before rebounding to close Monday 7.6 points higher at 1,521.73. The benchmark index traded in narrow range on Tuesday and Wednesday making marginal gains of 0.26 and 0.3 point respectively. The FBM KLCI closed 3.27 points firmer at 1,525.56 on Thursday but ended 2.49 points lower at 1,523.07 on Friday after hitting intra-week high of 1,526.27.

On the weekly chart, the FBM KLCI formed a small white candlestick which indicates low volatility and consolidation but with an upward bias. The key index is likely to further consolidate this week with immediate overhead resistance at 1,530-point level, while the lower support zone is at 1,513 to 1,502.

On the daily chart, the FBM KLCI formed a bearish dark-cloud-cover candlestick pattern, which is a top reversal candle pattern, and hence, the key index is likely to further consolidate itself and move in a range-bound mode. The underlying trend is up as the key index continued to stay above all the short, medium and long term moving averages. Immediate support by the 10-day SMA is at 1,519 and the lower support zone at 1,506 to 1,500 formed of the cluster of longer term moving averages shall form a strong cushion area.

Weekly MACD continued to climb higher after crossing the zero-line the previous week, indicating the weekly upward momentum is still intact. Daily MACD has turned downward and the histogram also turned shorter, indicating a continued loss in the daily momentum, and hence, the FBM KLCI is likely to go into a consolidation mode. Weekly RSI (14) has hooked up to 56.7, indicating the weekly relative strength is in the mildly bullish state. Daily RSI (14) has slide lower to 63.1, reflecting the pullback on last Friday, and the daily relative strength is still in the bullish zone. Weekly Stochastic has hooked downward gently to 95.6 from 96.1 the previous week after entering the overbought zone. Daily Stochastic has also hooked downward to 85.5, and just crossed the slow stochastic line, indicating the key index’s strength might turn weaker. Readings from the weekly and daily indicators showed that the FBM KLCI’s weekly momentum is still positive while the daily momentum is turning weak, and likely to extend its consolidation.

The overall uptrend of the FBM KLCI is still intact. Immediate strong overhead resistance zone is expected at 1,530 to 1,539 formed by the down gap. If the key index is able to breakthrough this zone decisively with volume, it might continue its rally towards the 1,550-point level. Nonetheless, it is likely to go into a short term range-bound consolidation for the time being as indicated by the continued loss of momentum on the daily chart. As the key index-linked counters continue to consolidate, the market is likely to be continued dominated by the third liners and penny stocks.

Last Friday, the Dow fell -48.96 points or -0.39% to close at 12,422.06. This week, the FBM KLCI is likely to trade within a range of 1,502 to 1,540, and for today, it is likely to trade within a range of 1,516 to 1,531.

This week's expected range: 1502 – 1540
Today’s expected range: 1516 – 1531

Resistance: 1526, 1528, 1531
Support: 1516, 1519, 1521

FBM KLCI - continued its uptrend

2012-01-13T08:49:00.002+08:00

Stocks on Bursa Malaysia closed steadier yesterday despite the softer performance of other Asian markets following the weaker Japan trade data and China's inflation data. The market moved within a narrow trading range due to a dearth of fresh market leads, as investors are awaiting the outcome of the Spanish debt sales as well as the interest rates announcement by the European Central Bank and the Bank of England. The FBM KLCI ended 3.27 points or 0.21% firmer at 1,525.56. Losers led gainers by 418 to 351 while 339 counters were unchanged. Turnover dipped to 1.515 billion shares worth RM1.579 billion from 1.910 billion shares valued at RM1.941 billion on Wednesday.

The FBM KLCI opened 1.10 point lower at 1,521.19 and slipped marginally lower to 1,520.78. It then rebounded and moved upward gradually in a narrow trading range to close at the highest point of the day. Chart wise, the FBM KLCI formed a bullish small white candlestick which indicates the bulls were in control for the day. As it was mentioned in yesterday’s report, the FBM KLCI was in range-bound consolidation mode, an upside breakout of the overhead resistance at 1,525 is likely to see the key index moving higher. The immediate strong overhead resistance is now at 1,530-point level.

MACD continued to climb higher, but its histogram also continued to turn shorter, indicating a weak upward momentum and some inherent weakness is in the building. RSI (14) was higher at 64.8, indicating a continued improvement of the short term relative strength. Stochastic was marginally higher at 87.1 and showed sign of tapering off, indicating a continuation of the up cycle amid a slight increase in the market strength. Readings from the indicators showed that the upward momentum of the FBM KLCI is improving, but at a very slow pace.

The trend of the FBM KLCI remained up, and the key index is likely to continue its uptrend journey to test the immediate resistance zone of 1,530 to 1,539. If it can break through this zone successfully with conviction, then it is likely to retest the 1,550-point psychological level. Immediate downside support zone is at 1,520 to 1,515. Overnight, the Dow rose +21.57 points or +0.17% to close at 12,471.02. Today, the FBM KLCI is likely to trade within a range of 1,517 to 1,531.

This week's expected range: 1479 – 1549
Today’s expected range: 1517 – 1531

Resistance: 1527, 1529, 1531
Support: 1517, 1519, 1522

Stocks to watch: POS, CBIP, HSL, SEALINK, XOX

FBM KLCI - closed almost unchanged

2012-01-12T08:52:00.001+08:00

Stocks on Bursa Malaysia ended steadier yesterday with investors nibbling in lower liners and penny stocks. The FBM KLCI inched up 0.3 point to end at 1,522.29 after trading in a narrow range. Gainers led losers by 437 to 385 while 300 counters were unchanged. Turnover rose to 1.910 billion shares worth RM1.941 billion from 1.858 billion shares valued at RM1.872 billion.

The FBM KLCI opened 0.04 point higher at 1,522.03 and climb to the intra-day high of 1,523.94 within the first thirty minutes, and profit-taking activity set in to push the key index to the intra-day low of 1,518.80 at late morning before rebounding gradually to close almost unchanged. Chart wise, the FBM KLCI formed a Doji candlestick which indicates uncertainty and indecision of market direction. With a spinning-top and a Doji occurring over the last two days, the market gave a signal that the FBM KLCI is likely to continue with its range-bound consolidation process. Immediate overhead resistance is at 1,525 while the downside support level is at 1,518, and a breakout in either one direction will see the key index continue moving in that direction.

MACD was flat, but its histogram continued to turn shorter, indicating a continued loss in the index’s momentum. Nonetheless, as the index is still above the zero-line, it indicates consolidation. RSI (14) was almost flat at 63.6, indicating consolidation with a bullish undertone. Stochastic was higher at 86.4, indicating the short term up cycle is still intact. Readings from the indicators showed that the FBM KLCI is lacking in momentum and is heading for a short term consolidation.

The trend of the FBM KLCI remained up. However, as the key index already showed signs of lacking in momentum, it is likely to go into 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. As the volume remained active, the overall market will continue with the rotational play on the lower liners and penny stocks while the key index-link stocks consolidate.

Overnight, the Dow fell -13.02 points or -0.10% to close at 12,449.45. Today, the FBM KLCI is likely to trade within a range of 1,514 to 1,530.

This week's expected range: 1479 – 1549
Today’s expected range: 1514 – 1530

Resistance: 1525, 1527, 1530
Support: 1514, 1516, 1519

Stocks to watch: SUPERMX, MUDAJYA, HAIO

FBM KLCI - marginally higher

2012-01-11T08:42:00.003+08:00

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

FBM KLCI - uptrend continued

2012-01-10T08:52:00.002+08:00

Stocks on Bursa Malaysia ended broadly higher yesterday and persistent buying in selected heavyweights pushed the FBM KLCI to end at its intra-day high of 1,521.73 with a gain of 7.6 points or 0.5%. Gainers thumped losers by 491 to 264, while 301 counters were unchanged. Total turnover rose to 1.64 billion shares worth RM1.71 billion from Friday's closing of 1.47 billion shares worth RM1.39 billion.

The FBM KLCI opened 0.93 point higher at 1,515.06 but pulled back to touch the intra-day low of 1,513.35. It then rebounded to the positive territory and stayed sideways for a major part of the day, and a last minute buying in selected heavyweights pushed the key index to close at the high of the day. Chart wise, the FBM KLCI formed a bullish white candlestick which indicates a confirmed reversal of the key index after four days of consolidation. It is likely to continue climbing higher today with immediate overhead resistance zone at 1,525 to 1,530.

MACD continued to climb higher but its histogram was shorter, indicating a lack of strength and momentum of the key index. RSI (14) was higher at 63.4, indicating the relative strength of the key index is still in the bullish zone. Stochastic was higher at 80.7, and has crossed above the slow stochastic line, indicating that the short term down cycle or correction is probably over and the resumption of the up cycle. Readings from the indicators showed that the short term correction of the FBM KLCI is probably over, and the key index may resume its upward momentum.

With the up move yesterday, the FBM KLCI has resumed its overall uptrend, and is ready to move higher to re-challenge the immediate resistance level of 1,530. The resistance zone formed by the gap at 1,530 to 1,539 may post as a strong barrier to the up move, while the immediate downside support zone is at 1,513 to 1,508. With the volume remained at the current level or higher, the market is poised for a pre-Chinese New Year rally with active rotational play on the second and third liners.

Overnight, the Dow rose +32.77 points or +0.27% to close at 12,392.69. Today, the FBM KLCI is likely to trade within a range of 1,507 to 1,531.

This week's expected range: 1479 – 1549
Today’s expected range: 1507 – 1531

Resistance: 1525, 1528, 1531
Support: 1507, 1510, 1516

Stocks to watch: REDTONE, MUHIBAH, DKSH, BIOOSMO, UNISEM

FBM KLCI - likely to extend consolidation

2012-01-09T08:50:00.003+08:00

Stocks on Bursa Malaysia ended the first trading week of 2012 weaker, in line with its regional peers as sentiment continued to be influenced by the uncertainty looming over the Euro-zone debt problem. The FBM KLCI ended last Friday 0.30 point lower at 1,514.13, after fluctuating between 1,508.93 and 1,515.27 throughout the day, and week-on-week, the key index fell 16.6 from previous Friday's close of 1,530.73. Losers outnumbered gainers by 391 to 377 while 299 counters were unchanged. Volume decreased to 1.466 billion shares, worth RM1.389 billion, from 1.668 billion shares, worth RM1.462 billion, on Thursday. Total weekly volume increased to 6.399 billion shares worth RM5.785 billion from last week’s 6.21 billion shares worth RM6.74 billion.

The FBM KLCI was basically in consolidation mode throughout the whole of last week which saw the key index opened 7.13 points lower at 1,523.60 on the first trading day of the year and closed lower on heavy profit-taking to end Tuesday at 1,513.54. The key index continued to slide lower to hit the intra-week low of 1,502.09 before rebounding slightly to close Wednesday at 1,504.22, losing another 9.32 points. On Thursday, the FBM KLCI staged a rebound and recovered some lost ground to close 10.21 points higher at 1,514.43, and on Friday, the key index traded in a range-bound manner to end the day 0.3 of a point lower at 1,514.13.

On the weekly chart, the FBM KLCI formed a bearish black hammer-like candlestick in Harami position, a top reversal candlestick pattern, which indicates profit-taking activity after a strong up move the previous week. With the appearance of this bearish Harami candle pattern, the FBM KLCI is likely to continue to consolidate this week. Nevertheless, the key index is still closing above all the moving averages on the weekly chart which indicates that it is still bullish, after down move last week may just be a pullback correction after two weeks of strong up move. Immediate overhead resistance zone is at 1,525 to 1,530, while the downside support zone is at 1,502 to 1,490.

On the daily chart, the FBM KLCI formed a white hammer-like candlestick in Harami position which indicates consolidation. The key index is now closing below the 5-day SMA but remained above the 10-day SMA, which further strengthen the perception of consolidation. Immediate overhead resistance zone is at 1,515 to 1,530 while the downside support zone is at 1,508 to 1,500, and the cluster of long term moving averages may provide some cushion to any down move.

Weekly MACD continued to climb higher, and has just made a golden-cross, sending out a bullish buy signal for the medium term. Daily MACD was also higher, but the daily histogram was getting shorter indicating a slow down in the upward momentum and the key index is moving into a consolidation mode. Weekly RSI (14) was lower at 55.4, reflecting the pullback correction, and nonetheless, it is still in the mildly bullish zone. Daily RSI (14) was marginally lower at 61, indicating the daily relative strength of the key index is still in the bullish zone. Weekly Stochastic continued to climb higher to 96.1, indicating very strong market strength and continuation of the weekly up cycle. Daily stochastic continued to slide lower to 74.4, indicating a continued loss in the daily momentum. Readings from the weekly and daily indicators showed that the FBM KLCI is bullish from the weekly perspective, while from the daily side, it is currently undergoing a consolidation phase, and the key index should resume it upward momentum once the correction is over.

The longer term trend of the FBM KLCI remained bullish and up, while for the immediate short term, it is in correction mode. With the longer term trend still up, the FBM KLCI is likely to resume its short term uptrend once the current correction phase is over. While the index link heavyweights may continue to consolidate, the overall market is likely to be dominated by active trading in second and third liners stock on rotational play. Last Friday, the Dow fell -55.78 points or -0.45% to close at 12,359.92. This week, the FBM KLCI is likely to trade within a range of 1,479 to 1,549, and for today, it is likely to trade within a range of 1,503 to 1,522.

This week's expected range: 1479 – 1549
Today’s expected range: 1503 – 1522

Resistance: 1517, 1520, 1522
Support: 1503, 1506, 1510

Stocks to watch: UNISEM, PUNCAK, KPS, DKSH

FBM KLCI - rebounded to close higher

2012-01-06T08:48:00.002+08:00

Stocks on Bursa Malaysia ended on a firmer note yesterday with the main index staying above the psychological 1,500-point level. Gains in plantation, palm oil-related and finance counters enabled the market barometer to rebound and close in the black for the first time since trading in the new year began. The FBM KLCI ended at 1,514.43, up 10.21 points, or 0.68%, after opening 2.83 points better at 1,507.05. Gainers outnumbered losers by 467 to 325, while 324 counters were unchanged. Volume increased to 1.668 billion shares worth RM1.462 billion, from 1.658 billion shares worth RM1.528 billion previously.

The FBM KLCI opened 2.83 points higher at 1,507.05 and slid to the intra-day low of 1,504.54 on continued profit-taking activity. It then rebounded and moved higher with mild pulled back correction along the way, and it touched the intra-day high of 1,514.82 before closing the day slightly off high. Chart wise, the FBM KLCI formed a bullish Harami candlestick, a bottom reversal candlestick pattern formation, which indicates the bulls have came back to take control after two days of correction. The key index rebounded to close higher after hitting into the support zone of 1,506 to 1,500 provided by the clusters of long term moving averages, and it may continue its upward momentum to move higher today.

MACD has hooked upward slightly, but its histogram continued to turn shorter, indicating a state of consolidation. RSI (14) has hooked upward to 61.2, indicating the short term relative strength has moved back to the bullish zone. Stochastic, nonetheless, has crossed below the 80-level to 75.6, indicating a continuation of the short term down cycle and continued weakness in the key index. Mixed signals from the indicators showed that the FBM KLCI has gone into a consolidation phase.

The FBM KLCI has again closed above the short term 5-day SMA after closing below it yesterday, reflecting the rebound and the overall trend of the FBM KLCI remained up as the key index continued to stay above all the moving averages. Immediate overhead resistance zone is at 1,515 to 1,525 while the downside support zone is at 1,505 to 1,500. Overnight, the Dow fell a marginal -2.72 points or -0.02% to close at 12,415.70. Today, the FBM KLCI is likely to trade within a range of 1,497 to 1,525.

This week's expected range: 1463 – 1571
Today’s expected range: 1497 – 1525

Resistance: 1518, 1522, 1525
Support: 1497, 1500, 1507

Stocks to watch: MAS, XDL, HANDAL, PROTON

FBM KLCI - lower on continued profit-taking correction

2012-01-05T08:37:00.002+08:00

Stocks on Bursa Malaysia ended mixed yesterday as the benchmark FBM KLCI continued to head south to close 9.32 points or 0.62% lower at 1,504.22 on the second trading day of 2012, after touching an intra-day high of 1,525.14. Losers outnumbered gainers by 404 to 387, while 318 counters were unchanged. Turnover was slightly higher at 1.658 billion shares worth RM1.527 billion compared with 1.604 billion shares valued at RM1.406 billion on Tuesday.

Taking cue from the strong gain on Wall Street overnight, the FBM KLCI opened 3.62 points higher at 1,517.69 and surged to the intra-day high of 1,525.14 within the first six minutes of trading, and profit-taking immediately set in which pushed the key index lower for the rest of the day to hit the intra-day low of 1,502.09 before rebounding slightly to close at 1,504.22. Chart wise, the FBM KLCI formed a bearish black candlestick which indicates the bears were fully in control for the day, and the key index may continue to consolidate today. The bearish down move yesterday was anticipated as mentioned in yesterday’s analysis, and is a confirmation to the bearish Harami pattern formed on Tuesday. The key index has now moved into the confine of the support zone of 1,500 to 1,506, and the immediate key support level is the 1,500-point psychological support level.

MACD has hooked downward slightly, and together with a shorter histogram it indicates a slow down in the upward momentum due to the correction over the last two sessions. RSI (14) continued to slide lower to 57.9, indicating the relative strength of the key index has turned mildly bullish from bullish a day earlier. Stochastic continued to slide lower to 82.3, reflecting the correction and indicating possible further consolidation in the key index. Readings from the indicators showed that the FBM KLCI has entered a short term correction phase after the recent rally.

The FBM KLCI has closed below the 5-day SMA, indicating the key index has gone into a short term correction mode. Nevertheless, the overall trend of the FBM KLCI remained up. Immediate overhead resistance zone is at 1,511 to 1,530 while the downside support zone is at 1,502 to 1,490 with the 10-day SMA providing support at 1,497-point level. Judging from the volume and value transacted, the overall market is likely to be still dominated by the second and third liners while the blue-chips counters consolidate themselves.

Overnight, the Dow rose +21.04 points or +0.17% to close at 12,418.42. Today, the FBM KLCI is likely to trade within a range of 1,472 to 1,548.

This week's expected range: 1463 – 1571
Today’s expected range: 1472 – 1548

Resistance: 1519, 1534, 1548
Support: 1472, 1487, 1495

FBM KLCI - pullback correction on profit-taking

2012-01-04T08:51:00.003+08:00

Bursa Malaysia started the New Year on a weak note yesterday, bucking the regional trend, as investors locked in profits from a rally on the last trading day of 2011. It was the only market in the Asia Pacific that slumped yesterday, with profit-taking in banking stocks steering the key FBM KLCI index 17.19 points, or 1.12%, lower to 1,513.14. The overall market was mixed, with many second and third liners making gains. Gainers led losers by 446 to 325 while 278 counters were flat. Turnover surged to 1.604 billion shares worth RM1.406 billion compared with last Friday’s 1.329 billion shares worth RM1.527 billion.

The FBM KLCI opened 7.13 points lower at 1,523.60 and slid lower for the rest of the day with intermittent weak rebounds. It touched the intra-day low of 1,512.08 before rebounding slightly to end the day at 1,513.14. Chart wise, the FBM KLCI formed a bearish black candlestick in Harami position which indicates heavy profit-taking activity throughout the day, and the bearish Harami pattern is also a top reversal candle pattern when it occurs after an up move. The key index may continue to consolidate today but with an upward bias as the underlying trend is still up. Immediate support zone is at 1,511 to 1,500.

MACD continued to move higher but at a slower pace, as shown by the shorter histogram, indicating a reduction in the upward momentum. RSI (14) fell to 62.3 from 71.7 on last Friday, reflecting the correction, and nonetheless, the short term relative strength is still in the bullish zone. Stochastic fell lower to 90.4 and has crossed below the slow stochastic line, indicating a pullback correction in the key index and the possible beginning of a short term down cycle which needs more data to confirm. Readings from the indicators showed that the FBM KLCI is undergoing a pullback correction after the strong up move on last Friday, which is in line with yesterday’s forecast.

The trend of the FBM KLCI is up. While the correction may continue to push the key index lower, strong support is expected at the 1,506 to 1,500 zone provided by the cluster of the long term moving averages which now turn support, and immediate support is at 1,511 provided by the 5-day SMA. The overall market is expected to be still dominated by active trading in second and third liners while the index-link counters may continue to consolidate.

Overnight, the Dow rose +179.82 points or +1.47% to close at 12,397.38. Today, the FBM KLCI is likely to trade within a range of 1,497 to 1,536.

This week's expected range: 1463 – 1571
Today’s expected range: 1497 – 1536

Resistance: 1521, 1528, 1536
Support: 1497, 1504, 1509

Stocks to watch: HIBISCS, HIBISCS-WA, MAS, PERISAI, BHIC, IGB, MBSB,SUPERMX, TOPGLOV

FBM KLCI - uptrend likely to continue

2012-01-03T08:49:00.002+08:00

Stocks on Bursa Malaysia ended the final week of 2011 on a strong note as investors look for year-end cheer. Late window-dressing in heavyweights helped lift the bourse to ensure the benchmark index ended the year above 1,500. Interests were confined to high-yielding stocks in the banking, plantation, technology and consumer sectors. The FBM KLCI closed at its best in nine months, with a gain of 24.04 points, or 1.60%, to 1,530.73. Week-on-week, the key index gained 34.58 points or 2.31% from previous Friday’s close of 1,496.15. Year-on year, the benchmark gained 11.82 points from 1,518.91 on 30 December 2010. Market breadth was positive with gainers leading losers by 468 to 327. Volume declined to 1.33 billion shares worth RM1.53 billion from 1.59 billion shares valued at RM1.16 billion registered on Thursday.

As a quick recap, 2011 was a year of roller-coaster ride whereby the market witnessed a number of unpleasant surprises from conflicts in the Middle East and North Africa to the natural disasters in Japan. Economically, Greece's debt problem had triggered instability in the Euro-zone while over in the US, the Standard and Poor’s downgrade of the US' triple-A rating sparked panic selling across the globe. Despite all the negativities, the FBM KLCI still surged to close the year at 1,530.73, surpassing last year's close of 1,518.91, and makes it the best performing index in this region.

The FBM KLCI was basically on an uptrend mood last week with the key index closing the first trading day of the week at 1,500.91 on Tuesday, after sliding to the intra-week low of 1,490.16. The benchmark index continued its rise over the next three trading days despite numerous profit-taking activities to end the week at its highest point of 1,530.73. On the weekly chart, the FBM KLCI formed a bullish white candlestick which indicates the bulls were in action and sent the key index passed the resistance at 1,506 posted by the 60-week SMA. With this strong up move, the FBM KLCI has already closed above all the weekly moving averages, and has resumed its bullish uptrend.

On the daily chart, the FBM KLCI formed a bullish white Marubozu candlestick which indicates the bulls were fully in control, and it closed right on the target level of 1,530 as forecasted in the last few analysis. With the strong upward momentum, the key index is likely to surge further this coming week. However, the gap area at 1,530 to 1,546 may post as a strong resistance zone, with immediate resistance level envisaged at 1,539. If the FBM KLCI is able to breakthrough this strong resistance zone, then it stand a high chance of running higher to re-test the all time high level of 1,594.74 registered on July 8 2011. Nonetheless, as the key index was being pushed up in the last minute, this may attract some profit-taking on the index-link counters which may cause a dip in the index this week.

Weekly MACD continued to climb higher, and so is the daily MACD, indicating a continued improvement in the weekly and daily momentum. Weekly RSI (14) was higher at 58.4, indicating the weekly relative strength is approaching the bullish zone. Daily RSI (14) has surged to 71.1 from 64.8 a day earlier, indicating the short term relative strength of the key index has turned bullish. However, it has also entered the short term overbought level, the 70-level, for the first time after breaking below it on 11th July 2011, and some profit-taking is likely to happen. Weekly Stochastic continued to climb higher to 92.9, indicating a strong weekly market strength and continuation of the weekly up cycle. Daily Stochastic, however, only gained gently to 97.5 from 97.1 on Thursday, indicating some inherent technical weakness, and some profit-taking pullback might happen. Readings from the weekly and daily indicators showed that the FBM KLCI has turned bullish and the upward momentum is likely to carry the key index higher amid some mild profit-taking activity.

The trend of the FBM KLCI is now up and has turned bullish as the key index is now closing above all the short, medium and long term moving averages. The uptrend is likely to continue with intermittent profit-taking activity. It is likely to see the FBM KLCI re-testing the all time high level within the first half of year 2012 as plenty of positive news flows were likely this year given the feel good factors generated from the 13th general election which is widely speculated to be held within the first half of this year and the rolling out of the Economic Transformation Programme (ETP).

Last Friday, the Dow fell -69.48 points or -0.57% to close at 12,217.56. This week, the FBM KLCI is likely to trade within a range of 1,463 to 1,571, and for today, it is likely to trade within a range of 1,493 to 1,553.

This week's expected range: 1463 – 1571
Today’s expected range: 1493 – 1553

Resistance: 1539, 1546, 1553
Support: 1493, 1501, 1515

Happy New Year 2012

2011-12-31T18:30:00.005+08:00

Wishing you and your loved ones Happy New Year 2012.

May the new year bring good health, prosperity, happiness and cheer for you and your family.

Photos of World Celebrate New Year 2012

HONG KONG

SEOUL

MALAYSIA

TAIWAN

BEIJING

MANILA

SINGAPORE

SYDNEY

TOKYO

INDIA

TIMES SQUARE, NEW TORK

LONDON

GERMANY

PARIS

GREECE

RIO DE JANIERO, BRAZIL

Source:AP, USA Today

FBM KLCI - closed firmly above 1,500

2011-12-30T08:51:00.001+08:00

Stocks on Bursa Malaysia closed higher yesterday on bargain hunting of discounted stocks ahead of the year-end, and the local bourse was further supported by selective window-dressing activities. The FBM KLCI rose 2.58 points or 0.17% to close at 1,506.69, after opening 4.06 points lower at 1,500.05. Market breadth was positive with gainers leading losers by 492 to 254 while 335 counters were unchanged. Volume increased to 1.59 billion shares, worth RM1.16 billion, from 1.27 billion shares, valued at RM904.21 million, registered on Wednesday.

Taking cue from the weak performance of Wall Street overnight, the FBM KLCI opened 4.06 points lower at 1,500.05 and slid to the intra-day low of 1,497.19, losing 6.92 points at its worst. The key index then rebounded and rose to the intra-day high of 1,511.19 before last minute profit-taking activity sent it to close off high. Chart wise, the FBM KLCI formed a bullish white candlestick which indicates the bulls were in control. However, the upper shadow showed that invertors choose to take profit instead of taking further risk when the key index approached the resistance level of 1,510. Nonetheless, the FBM KLCI has now stayed above the long term 240-day SMA which is at 1,505.58, which will now act as a support. If the FBM KLCI is able to stay firm above the current level, we might see a pre-Chinese New Year rally towards the 1,530-point level.

MACD continued to rise, indicating a continuation of the upward momentum. RSI (14) was higher at 64.8, indicating a further improvement of the relative strength into the bullish zone. Stochastic has hooked downward to 97.1 from 99.7 a day ago, indicating some profit-taking activity has occurred as the key index has moved deep into the short term overbought zone. Readings from the indicators showed that the FBM KLCI has turned bullish but may experience profit-taking correction as the key index was a little overbought after running up for 10 sessions from the recent low of 1,448.

The trend of the FBM KLCI has turned up and bullish as the key index has now closed above all the short, medium and long term moving averages. However, the key index might take a breather at current level before running up to higher levels. With the overall volume starting to pick up, the market is likely to remain active with rotational play in the second and third liners. As the year 2011 is coming to a close today, we would like to take this opportunity to wish all our readers a happy and prosperous new year 2012, and may you be blessed with good health and abundance of wealth.

Overnight, the Dow rose +135.63 points or +1.12% to close at 12,287.04, and today, the FBM KLCI is likely to trade within a range of 1,484 to 1,525

This week's expected range: 1441 – 1530
Today’s expected range: 1484 – 1525

Resistance: 1513, 1519, 1525
Support: 1484, 1491, 1498

FBM KLCI - continued climbing higher

2011-12-29T08:38:00.001+08:00

Stocks on Bursa Malaysia closed higher yesterday on late fund buying activities. The key index was likely to end the year above the 1,500 points level driven by a bullish breakout and positive technical readings coupled with rotational window dressing activities. The FBM KLCI rose 3.20 points or 0.21% to close at 1,504.11 after opening 1.18 points lower at 1,499.73. Gainers led losers by 386 to 314 while 312 counters were unchanged. Volume rose to 1.27 billion shares, worth RM904.21 million, from 993.75 million shares, valued at RM743.83 million on Tuesday.

The FBM KLCI opened 1.18 points lower at 1,499.73 and slid lower to 1,495.52 on mild profit-taking activity. The key index then rebounded to gradually recover the lost ground and traded higher for the rest of the day to close near the day’s high. Chart-wise, the FBM KLCI formed a white hangman-like candlestick which may indicate a possible top. However, as the lower shadow was short, it indicates the selling pressure was not intense, and the key index may just take a breather after rising consecutively for five sessions. Immediate strong overhead resistance is at 1,506 posted by the 240-day SMA.

MACD continued to rise, indicating a continued improvement of the key index’s momentum. RSI (14) was higher at 63.9, indicating the relative strength has turned bullish. Stochastic was marginally higher at 99.7, indicating very strong market strength, but is tapering off, as it is deep into the short term overbought zone some pullback is likely to happen. Readings from the indicators showed that the FBM KLCI is getting bullish but is slightly overbought and a pullback on profit-taking may happen.

The trend of the FBM KLCI is up. However, the long term moving averages such as the 240 and 300-day SMA are still posting as a resistance, and the immediate overhead resistance zone is at 1,506 to 1,510. If the key index is able to break above this resistance zone, then it might trigger a rally towards the next higher target of 1,530. Overnight, the Dow fell -139.94 points or -1.14% to close at 12,151.41, and today, the FBM KLCI is likely to trade within a range of 1,489 to 1,514.

This week's expected range: 1441 – 1530
Today’s expected range: 1489 – 1514

Resistance: 1508, 1511, 1514
Support: 1489, 1492, 1498

FBM KLCI - back to 1,500-point level

2011-12-28T08:39:00.002+08:00

Stocks on Bursa Malaysia closed on firm note yesterday on late buying interest from fund managers to adjust their portfolios ahead of the final trading week of 2011. The FBM KLCI was able to re-test its immediate resistance level of 1,500 on last-minute buying although moving range-bound earlier. The key index rose 4.76 points or 0.32% to close at 1,500.91, its best in four months, boosted by fund buying, especially in plantation counters. Gainers led losers by 378 to 341 while 289 counters were unchanged. Turnover was thin with 993.76 million shares worth RM743.83 million changed hands compared with 942.51 million shares valued at RM886.65 on last Friday.

The FBM KLCI opened 2.0 points lower at 1,494.15 and slid to the intra-day low of 1,490.16 within the first fifteen minutes. The key index rebounded to gradually recover its lost ground and moved higher for the rest of the day, and some last minute buying in selected blue-chips further pushed the key index to close at the highest point of the day. Chart-wise, the FBM KLCI formed a bullish white candlestick which indicates the bulls were in control. The key index has now moved into the resistance zone of 1,500 to 1,506, if it can breakthrough this resistance zone decisively with volume, then it might trigger a rally towards the next higher target of 1,530-point.

MACD was higher, indicating a continued increased in the market momentum. RSI (14) was higher at 62.9, indicating the key index has turned bullish. Stochastic continued to surge higher to 99.1, indicating a strong market strength and continuation of the up cycle. Nonetheless, as the stochastic is deep into the overbought zone, a pullback might be expected. Readings of indicators showed that the FBM KLCI is currently in a bullish state, and the upward momentum might carry it to a higher level.

The trend of the FBM KLCI is gradually turning bullish, and if the key index is able to close above the resistance zone at 1,500 to 1,506 formed by the cluster of long term 200, 240 and 300-day SMA, it would turn fully bullish and a rally might be expected. Overnight, the Dow fell -2.65points or -0.02% to close at 12,291.35, and today, the FBM KLCI is likely to trade within a range of 1,482 to 1,512.

This week's expected range: 1441 – 1530
Today’s expected range: 1482 – 1512

Resistance: 1505, 1508, 1512
Support: 1482, 1486, 1493

Stocks to watch: PERISAI, BHIC, SUPERMX,YINSON

FBM KLCI - marching towards the 1,500-point level

2011-12-27T08:35:00.004+08:00

Stocks on Bursa Malaysia ended last Friday on a firmer note in quiet trading as regional markets started to wind down ahead of the festive holidays. Window-dressing activities dominated trading as investors sought quality stocks ahead of the year-end. The benchmark FBM KLCI rose by 4.69 points to close at 1,496.15, and week-on-week, the key index rose 29.93 points from previous Friday’s 1,466.22. On the broader market, gainers overwhelmed losers by 413 to 292 while 343 counters were unchanged. Some 942.51 million shares worth RM886.656 million changed hands compared with 1.204 billion shares worth RM1.017 billion on Thursday. Weekly volume dwindled to 7.046 billion shares worth RM4.996 billion from previous week’s 8.274 billion shares worth RM6.181 billion.

The FBM KLCI opened last week 0.56 point higher at 1,466.78 and slid to the intra-week low of 1,463.27 before rebounding to close 11.56 points higher at 1,477.78 on Monday. Taking cue of the weak performance on Wall Street overnight, the FBM KLCI fell 12.61 points to close Tuesday at 1,465.17. On Wednesday, the market was bolstered by upbeat economic data from US and Europe and the key index rose 19.81 points to close at 1,484.98 in line with regional market performance. The benchmark index continues to climb higher Thursday on some cosmetic dressing ahead of the closing of the year to close 6.48 points higher at 1,491.46, and it finished the week to close another 4.69 points at 1,496.15, near the high of the week.

On the weekly chart, the FBM KLCI formed a bullish white candlestick which indicates that the bulls were in control for the week, and it also confirmed the possible reversal signal generated by the spinning-top candlestick formed the previous week. With the strong weekly price action last week, the FBM KLCI is likely to continue its upward momentum to test the psychological resistance level of 1,500-point this week. The FBM KLCI has crossed above the 30-week SMA and the next level of resistance is at 1,506 posted by the 60-week SMA, and if the key index is able to go above this level, it would turn long term bullish again.

On the daily chart, the FBM KLCI formed a bullish white Marubozu candlestick which closed near the high of the day, and the key index is likely to continue moving higher today. Immediate overhead resistance zone is at 1,500 to 1,506, if the key index is able to break through this resistance zone convincingly, then it might rally towards the next target level at 1,530.

Both weekly and daily MACD continued to climb higher, indicating a continued pickup in the benchmark’s momentum. Weekly RSI (14) climb higher to 53.5 from 48.7 a week ago, indicating the weekly relative strength has turned mildly bullish from mildly bearish. Daily RSI (14) was higher at 61.3, indicating the daily relative strength has turned bullish. Weekly Stochastic continued to climb higher to 85.2, indicating a continuation of the weekly up cycle and continued improvement in the weekly market strength. Daily Stochastic has shot up to 92.7 from 67, indicating a strong improvement in the daily market strength. However, as the daily stochastic has moved into the short term overbought zone, some pullback might be expected. Readings from both the weekly and daily indicators showed that the FBM KLCI has turned bullish gradually, and the upward momentum is likely to carry the key index to a higher level.

The short and medium term trend of the FBM KLCI has turned up, while the longer term trend is still basically sideways. However, the FBM KLCI has closed above the 120 and 360-day SMA, indicating the long term trend is also starting to turn bullish. If the key index is able to breakthrough the overhead resistance zone at 1,500 to 1,506 formed by the cluster of long term 200, 240 and 300-day SMA, the index would turn bullish and may rally higher towards the next target of 1,530.

Last Friday, the Dow rose +124.35 points or +1.02% to close at 12,294.00. This week, the FBM KLCI is likely to trade within a range of 1,441 to 1,530, and for today, it is likely to trade within a range of 1,486 to 1,503.

This week's expected range: 1441 – 1530
Today’s expected range: 1486 – 1503

Resistance: 1499, 1501, 1503
Support: 1486, 1488, 1492

Merry Christmas & Happy New Year

2011-12-25T09:07:00.004+08:00

Wishing all our readers a Merry Christmas and Happy New Year 2012!

FBM KLCI - gradually turning bullish

2011-12-23T09:01:00.001+08:00

Stocks on Bursa Malaysia ended mixed yesterday with the benchmark FBM KLCI closed firmer bolstered by regional funds taking advantage of the local market’s defensiveness, and there was also some cosmetic dressing ahead of the closing of the year. The FBM KLCI closed 6.48 points or 0.44% higher at 1,491.46. The general market saw losers overwhelmed gainers by 455 to 290 while 336 counters closed unchanged. Turnover was lower with 1.204 billion shares worth RM1.017 billion changed hands compared with 1.655 billion shares worth RM1.321 million on Wednesday.

The FBM KLCI opened 0.38 point lower at 1,484.60 and was moving in a narrow range around the previous day’s close. Buying interest started to surface in the afternoon session which pushed the key index higher gradually to close near the high of the day. Chart-wise, the FBM KLCI formed a bullish white candlestick which is a continuation of the up move on Wednesday, and the key index is likely to continue its uptrend today. Immediate resistance zone is seen at 1,493 to 1,502, if the key index is able to break through this resistance zone successfully, then the whole trend would turn bullish.

MACD continued to climb higher after making the golden-cross, indicating a pick up in the index’s momentum. RSI (14) was higher at 59.8, and is approaching the bullish zone. Stochastic was also higher at 67, indicating an improvement of the market strength and continuation of the short term up cycle. Readings from the indicators showed that the FBM KLCI is gradually turning bullish, and hence may continue the current upward trend to move higher.

The short and medium term trend of the FBM KLCI has turned up, while the longer term trend is still basically sideways. Nonetheless, the FBM KLCI has closed above the 120 and 360-day SMA, giving out a first sign of the long term trend turning bullish. The key index is, however, still capped on top by the cluster of 200, 240 and 300-day long term SMA which form the strong overhead resistance zone at 1,501 to 1,507. If the FBM KLCI is able to breakthrough this resistance zone, then it would turn fully bullish and may move to a higher level.

Overnight, the Dow rose +61.91 points or +0.51% to close at 12,169.65, and today, the FBM KLCI is likely to trade within a range of 1,476 to 1,501.

This week's expected range: 1425 – 1501
Today’s expected range: 1476 – 1501

Resistance: 1495, 1498, 1501
Support: 1476, 1479, 1485

FBM KLCI - signs of bullishness

2011-12-22T08:38:00.001+08:00

Stocks on Bursa Malaysia ended on a firm note yesterday, in line with the stronger close on Wall Street and European markets overnight. The gain was bolstered by upbeat economic data from US and Europe and the positive external vibes had also spilled over to Asian bourses yesterday. The FBM KLCI rose 19.81 points or 1.35% to close at 1,484.98. Gainers led losers by 405 to 307 while 336 counters were unchanged. Turnover rose to 1.655 billion shares worth RM1.321 billion from 1.642 billion shares worth RM738.23 million yesterday.

Taking cue from the strong close on Wall Street overnight, the FBM KLCI opened with an up gap of 7.75 points at 1,472.92 and surged to the intra-day high of 1,487.15. The key index made a pullback on profit-taking but late buying interest on selected blue-chips manage to lift the index to close near the high. Chart-wise, the FBM KLCI formed a bullish white candlestick which indicates the bulls were in control for the day, and the bullish momentum might carry the key index higher today. The FBM KLCI had attempted to break the resistance zone of 1,484.81 to 1,487.36 formed by the down gap on December 6, but failed. However, it may re-test the resistance zone of 1,485 to 1,493 today, if successfully break through, the benchmark index may continue to move higher to re-test the psychological resistance level of 1,500-point.

MACD had turned upward and made a golden-cross over the signal-line, flashing a buy signal, and this indicates a breakout of the key index from the consolidation state to stage an up move. RSI (14) had turned upward to 57.6, signaling the short term relative strength of the key index had turned mildly bullish from neutral with a bearish bias the day before. Stochastic had swing up to 55.2 from 44.8, and has crossed above the slow stochastic line, indicating a change in the market momentum from down to up. Readings from the indicators showed that the momentum of the FBM KLCI had made a change from consolidation with a downward bias state to a mildly bullish state, and if the positive change in the momentum can continue, it is able to carry the key index higher.

The short term trend of the FBM KLCI has again turned upward with the strong up move yesterday. The medium term trend has also showed sign of turning up as the 50-day SMA has already trend upward while the 60-day SMA has started to curve upward. The long term trend is sideways as most of the long term moving averages are staying flat. Nonetheless, the FBM KLCI had made a bullish crossover the 120-day SMA yesterday, signaling a possible beginning of a new bull trend. Whatever it is, the key index will still have to break above the 1,507-point level in order for it to turn long term bullish again.

Overnight, the Dow rose +4.16 points or +0.03% to close at 12,107.74, and today, the FBM KLCI is likely to trade within a range of 1,460 to 1,503.

This week's expected range: 1425 – 1501
Today’s expected range: 1460 – 1503

Resistance: 1491, 1497, 1503
Support: 1460, 1466, 1475

Stocks to watch: CYBERT, CIHLDG, SUNWAY

FBM KLCI - lower on profit-taking

2011-12-21T08:31:00.002+08:00

Stocks on Bursa Malaysia ended lower yesterday on active selling in blue-chip counters ahead of the year-end holidays. The local market came under pressure in line with the generally negative sentiment in most regional markets brought on by rising fears that Europe’s sovereign debt situation may worsen. The global market outlook was further dampened as China’s manufacturing purchasing managers’ index had showed that its factory activity shrank in December. In the midst of a wobbly external outlook, the FBM KLCI fell 12.61 points or 0.85% to close at 1,465.17. Losers led gainers by 429 to 328 while 299 counters were unchanged. Turnover was slightly higher at 1.642 billion shares worth RM738.23 million from 1.601 billion shares worth RM1.03 billion on Monday.

Taking cue of the weak performance on Wall Street overnight, the FBM KLCI opened 1.91 points lower at 1,475.87 and slid lower throughout the day to hit the intra-day low of 1,464.31 before rebounding slightly to close at 1,465.17. Chart-wise, the FBM KLCI formed a bearish black candlestick which indicates that the bears were fully in control yesterday. The key index has made a pulled back after a strong up move the day before and is now sitting right of the 20-day SMA. Immediate support zone is at 1,463 to 1,460, where 1,460 coincided with the 50-day SMA, and a close below 1,460-point level is likely to see the key index turning weak and may fall further southward to test the 1,450-point psychological support.

MACD has turned downward after climbing for two days, indicating a resumption of the downward momentum, and continuation of the short term consolidation. RSI (14) has also made a turn and was lower at 49.95, indicating the key index has moved back to the neutral zone. Stochastic also hooked downward to 44.8, indicating the rebound has failed and the down cycle is likely to continue. Readings of the indicators showed that the FBM KLCI has again turned weak and bearish bias, and the consolidation process is likely to extend.

The trend of the FBM KLCI is currently sideways with a downward bias as the key index is trapped within the cluster of short, medium and long term moving averages. The critical support level now is the pivot low of 1,448 formed on December 15, if this support level is breached, the FBM KLCI is likely to re-visit the support at 1,423. The overall market is likely to be dominated by active trading in the penny stocks while the FBM KLCI continues to consolidate. Overnight, the Dow rose +337.32 points or +2.87% to close at 12,103.58, and today, the FBM KLCI is likely to trade within a range of 1,448 to 1,489.

This week's expected range: 1425 – 1501
Today’s expected range: 1448 – 1489

Resistance: 1473, 1481, 1489
Support: 1448, 1456, 1460

Stocks to watch: KEURO, JCY, IGB, BHIC, YINSON

FBM KLCI - bucking regional trend

2011-12-20T08:49:00.002+08:00

Stocks on Bursa Malaysia ended mixed yesterday amid gains in selected blue-chips which bucked regional and global trends where markets were generally down following the death of North Korean leader Kim Jong-Il. The FBM KLCI rose 11.56 points or 0.79% higher to close at 1,477.78. It had opened 0.56 of a point higher at 1,466.78 from last Friday’s closing. Losers led gainers by 445 to 315 while 283 counters were unchanged. Turnover was lower at 1.6 billion shares worth RM1.03 billion from 1.8 billion shares worth RM1.33 billion on last Friday.

The FBM KLCI opened 0.56 point higher at 1,466.78 and slid lower to the intra-day low of 1,463.27 at midday. The key index rebounded in the afternoon session on buying of selected blue-chips and rose to close at the highest point of the day. Chart-wise, the FBM KLCI formed a bullish white candlestick which indicated a continuation of the uptrend following the bottom reversal that happened on last Thursday. The FBM KLCI is likely to continue climbing higher today, but the resistance zone at 1,480 to 1,493 may post as a barrier to the up move with the gap at 1,485 being the main hurdle, as this level also coincided with the 360-day SMA.

MACD has turned upward, indicating a reversal of the previous downtrend. However, it was still below the signal-line, and a stronger up move is needed to generate a golden-cross. RSI (14) was higher at 55.9, indicating an improvement in the relative strength from neutral to mildly bullish. Stochastic has made a hooked up to 49.3, but was still below the slow stochastic line, and a cross above the slow stochastic line would signaled that the short term corrective down cycle is over. Readings from the indicators showed that the FBM KLCI is showing some signs of reversal, and a stronger up move is required to confirm that the recent correction is over otherwise it may continue to stay in a sideways consolidation mode.

The short term trend of the FBM KLCI has turned up as the key index is now closing above all the short term moving averages. The medium term trend is sideways while the long term trend is sideways with a bearish bias. Immediate overhead resistance zone is at 1,480 to 1, 507, while the immediate downside support zone is at 1,463 to 1,450. Overnight, the Dow fell -100.13 points or -0.84% to close at 11,766.26, and today, the FBM KLCI is likely to trade within a range of 1,453 to 1,493.

This week's expected range: 1425 – 1501
Today’s expected range: 1453 – 1493

Resistance: 1483, 1488, 1493
Support: 1453, 1458, 1468

Stock to watch: KEURO

FBM KLCI - likely to further consolidate

2011-12-19T09:10:00.002+08:00

Stocks on Bursa Malaysia closed slightly higher last Friday, boosted by persistent buying in blue-chips stocks. The FBM KLCI closed 2.11 points, or 0.14%, higher to 1,466.22. It had opened 1.14 points higher at 1,465.25 and hovered between the 1,463.25 and 1,472.76 throughout the day. On a weekly basis, the benchmark index fell 6.09 points from 1,460.13 a week earlier, as European leaders and the US Fed failed to convince investors on their strategies to prevent the financial crisis from widening. Gainers led losers by 423 to 345, while 314 counters were unchanged. Turnover was higher at 1.8 billion shares worth RM1.33 billion from 1.6 billion shares valued at RM1.25 billion on Thursday. Weekly volume decreased to 8.274 billion shares worth RM6.181 from previous week’s 9.596 billion shares worth RM6.641 billion.

The FBM KLCI was basically in consolidation mode the whole of last week. The key index opened the week with an up gap of 3.6 points at 1,463.73 and moved to the intra-week high of 1,474.55 before settling at 1,467.10 on Monday. The FBM KLCI declined 1.71 points to 1,465.39 on Tuesday after touching the intra-day low of 1,457.31. On Wednesday, the key index declined 2.27 points to 1,463.12 after trading in a narrow range. On Thursday, taking cue from the weak performance on Wall Street overnight, the FBM KLCI opened with a down gap of 3.25 points at 1,458.10 and plunged to the intra-week low of 1,448.54 before recovering to close in the positive territory with a gain of 0.99 of a point at 1,464.11, and chart-wise, it formed a white hammer candlestick, which is a bottom reversal candle pattern. On Friday, the FBM KLCI continued its rebound from Thursday and moved to the intra-day high of 1,472.76 before pulling back on profit-taking to close the week at 1,466.22.

On the weekly chart, the FBM KLCI formed a white spinning-top candlestick with a longer lower shadow which represents uncertainty, and indecision of market direction. However, the formation of this spinning-top candlestick after the occurrence of a long black candlestick the previous week also showed that the market was consolidating at current level, moreover, the key index was able to hold above the 5, 10 and 20-week simple moving average (SMA) after piercing through them, and hence might stage a rebound this week. However, the 80-week SMA at 1,478 might serve as a strong resistance to the up move.

On the daily chart, the FBM KLCI formed a white inverted hammer with a long upper shadow which indicates the key index was continuing its up move from Thursday’s rebound, but later sellers appeared to take profit and caused a pulled back of the key index from its intra-day high of 1,472.76, and the FBM KLCI might continue to consolidate today but with an upward bias with immediate overhead resistance at 1,472 posted by the 10-day SMA, while immediate downside support is at 1,462 provided by the 20-day SMA.

Weekly MACD continued to climb higher, indicating a continued improvement of the weekly momentum. Nonetheless, it is still below the zero-line, and this might just be part of a technical rebound. Daily MACD, however, continued to slide lower, but its histogram was turning shorter upward, indicating a slow down in the daily downward momentum. Weekly RSI (14) has hooked up to 48.7 from 47.7 the previous week, indicating a slight improvement of the weekly relative strength, but is still in the mildly bearish zone. Daily RSI (14) was higher at 50.9 from 49.9 on Thursday, indicating a slight improvement of the daily relative strength, and it has moved from bearish bias to the bullish bias neutral zone. Weekly Stochastic was at 83.9, and has continued to move higher, indicating an improvement of the weekly strength of the key index, and continuation of the weekly up cycle. Daily Stochastic, however, was lower at 46.4, indicating a continued loss in the daily momentum or strength of the key index, and a continuation of the daily down cycle. In short, readings from the weekly and daily indicators showed that the FBM KLCI is currently in a consolidation mode, and might continue to consolidate in the short term until a clear breakout sign is observed.

The trend of the FBM KLCI is currently sideways. In order to resume its uptrend, the key index will have to break through the strong overhead resistance zone at 1,480 to 1,507 posted by all the long term moving averages. On the other hand, the downside support zone is at 1,456 to 1,442, and is looking more fragile. The critical support level is at 1,423, and a break below this level will see the FBM KLCI turning very bearish.

Last Friday, the Dow fell a marginal -2.42 points or -0.02% to close at 11,866.39. This week, the FBM KLCI is likely to trade within a range of 1,425 to 1,501, and for today, it is likely to trade within a range of 1,452 to 1,483.

This week's expected range: 1425 – 1501
Today’s expected range: 1452 – 1483

Resistance: 1472, 1477, 1483
Support: 1452, 1457, 1462

FBM KLCI - formation of hammer candlestick

2011-12-16T08:38:00.003+08:00

Stocks on Bursa Malaysia ended mixed yesterday amid selective buying and profit-taking capping the rise. Negative vibes from abroad dent sentiment across the region as major US equity indices overnight fell between 1.1% and 1.5%, while persistent worries that Europe would not be able to prevent the sovereign debt crisis from spreading further, triggered the regional markets downtrend. At the close, the FBM KLCI rose 0.99 of a point or 0.1% to 1,464.11 after opening 3.25 points lower at 1,458.10. Losers led gainers by 380 to 346 while 314 counters were unchanged. Turnover was higher at 1.6 billion shares valued at RM1.25 billion from Wednesday’s 1.5 billion shares worth RM1.08 billion.

Taking cue from the weak performance on Wall Street overnight, the FBM KLCI opened with a down gap of 3.25 points at 1,458.10 and plunged to the intra-day low of 1,448.54 within the first twenty minutes, and the key index rebounded to gradually recover its lost ground to end the day near the intra-day high of 1,464.52. Chart-wise, the FBM KLCI formed a bullish white hammer candlestick, a bottom reversal candle pattern, which indicated that the key index was first being driven lower on fear but buying support later lifted it to close near the high of the day, and the FBM KLCI may continue its upward momentum to move higher today. The long lower shadow of the candlestick showed that support near the 1,450-point level was strong, and judging from the candlestick pattern formed over the last few sessions, the key index is trying to build base around the 1,460-point level.

MACD continued to slide lower, indicating a continued loss in the market momentum. RSI (14) has hooked upward slightly to 49.97, indicating the short term relative strength of the key index is in a neutral state. Stochastic was lower at 49.2, indicating a continued loss in market strength and the short term down cycle is intact. Readings from the indicators showed that the FBM KLCI is continuing its consolidation.

The short term trend of the FBM KLCI remained down, and nevertheless the key index is finding support from the 20-day SMA as it has been able to close above this moving average after piercing through it in the last three sessions. The key index also closed above the 5-day SMA, indicating the short term selling pressure is gradually diminishing, and hence, the FBM KLCI might stage a rebound to move higher today. Immediate overhead resistance zone is at 1,466 to 1,475 while the downside support zone is at 1,456 to 1,448.

Overnight, the Dow rose +45.33 points or +0.38% to close at 11,868.81. Today, the FBM KLCI is likely to trade within a range of 1,437 to 1,481.

This week's expected range: 1410 – 1529
Today’s expected range: 1437 – 1481

Resistance: 1469, 1475, 1481
Support: 1437, 1443, 1453

Stocks to watch: JCY, BOILERM, RSAWIT

FBM KLCI - in consolidation mode

2011-12-15T08:36:00.000+08:00

Stocks on Bursa Malaysia closed lower yesterday led by plantation counters amid weak regional equities. The local bourse moved in line with regional markets on a lack of market-moving factors, and was disappointed with US policymakers not mentioning fresh measures to stimulate the US economy at the Federal Open Market Committee meeting on Tuesday. The FBM KLCI declined 2.27 points or 0.15% to 1,463.12 after opening 3.41 points lower at 1,461.98. The overall market sentiment was bearish with losers outpacing gainers by 412 to 309 while 289 counters were unchanged. Turnover was lower at 1.5 billion shares worth RM1.08 billion from 1.83 billion shares valued at RM1.38 billion on Tuesday.

The FBM KLCI opened 3.41 points lower at 1,461.98 and fell to the intra-day low of 1,459.45 within the first five minutes after market opened. The key index then rebounded and was moving sideways in and out of the positive and negative territory in a narrow range for the rest of the day. Chart-wise, the FBM KLCI formed a small white spinning-top candlestick which indicates indecision of market direction and consolidation. Hence, the key index is likely to continue its current consolidation process with immediate support zone at 1,459 to 1,456. A break below the support at 1,456 is likely to see the FBM KLCI falling lower to test the 1,450-point psychological support level.

MACD continued to slide lower, albeit still above the zero-line, indicating a continued loss of market momentum. RSI (14) was at 49.5 and has slipped below the 50 level, is still in the neutral zone but with a bearish bias. Stochastic made a gentle hooked up to 51.8 but was still below the slow stochastic line, indicating the down cycle is still intact. Readings from the indicators showed that the FBM KLCI is losing its momentum and is currently in a consolidation mode.

The short term trend of the FBM KLCI remained down as the key index continued to stay below the short term moving averages, and the medium term trend is sideways while the long term trend remained bearish. Immediate overhead resistance zone is at 1,466 to 1,474 while the immediate downside support zone is at 1,459 to 1,456. With no fresh market moving news, the FBM KLCI is likely to continue with its consolidation. Overnight, the Dow fell -115.42 points or -0.97% to close at 11,839.52. Today, the FBM KLCI is likely to trade within a range of 1,452 to 1,474.

This week's expected range: 1410 – 1529
Today’s expected range: 1452 – 1474

Resistance: 1466, 1470, 1474
Support: 1452, 1456, 1459

FBM KLCI - lower in line with weak regional performance

2011-12-14T08:31:00.002+08:00

Stocks on Bursa Malaysia ended lower yesterday weighed on by concerns over Europe’s debt issue, a downgrade of its credit rating, and the ability of the leadership there to solve the problem. The FBM KLCI declined 1.71 points or 0.12% to 1,465.39 after opening 4.19 points lower at 1,462.91. Market breath was negative with losers outpacing gainers by 386 to 343 while 315 counters were unchanged. Turnover was higher at 1.83 billion shares valued at RM1.38 billion from 1.595 billion shares worth RM1.129 billion on Monday.

Taking cue from the weak performance on Wall Street overnight, the FBM KLCI opened with a down gap of 4.19 points at 1,462.91 and slid to the intra-day low of 1,457.31 within the first five minutes. The key index rebounded and gradually moved higher for the rest of the day and touched the intra-day high of 1,467.52 before closing off high. Chart-wise, the FBM KLCI formed a white hammer candlestick, a bottom reversal candle pattern which indicates the bears were initially in control but the bulls later fought back and pushed up the index. Judging from the price action over the last three sessions, the FBM KLCI has found a temporary support around the 1,456-point level and may continue to consolidate above this support level. Nonetheless, the overall trend is still bearish bias, and if the key index breaks below the 1,456-point support level, it may plunge towards the next lower support of 1,450.

MACD continued to slide lower after making the dead-cross, indicating a continued loss in the market momentum and is short term bearish. As the MACD is still above the zero-line, current weakness may just be a short term correction. RSI (14) has hooked down marginally to 50.5, indicating a neutral position in terms of the short term relative strength. Stochastic continued to slide lower to 51.1, indicating a continued loss in the market momentum and the short term down cycle is intact. Readings from the indicators showed that the FBM KLCI is currently in a consolidation mode with a bearish bias.

The short term trend of the FBM KLCI remained down, and the medium term trend is sideways while the long term trend remained bearish. Immediate overhead resistance zone is at 1,468 to 1,476 posted by the short term 5, 10 and 30-day SMA, while the downside support zone is at 1,456 to 1,450. Judging from the volume and value traded, the overall market is likely to remain active with rotational play on the penny stocks while the FBM KLCI is likely to continue its consolidation. Overnight, the Dow fell -66.45 points or -0.55% to close at 11,954.94. Today, the FBM KLCI is likely to trade within a range of 1,449 to 1,478.

This week's expected range: 1410 – 1529
Today’s expected range: 1449 – 1478

Resistance: 1470, 1474, 1478
Support: 1449, 1453, 1459

FBM KLCI - a technical rebound

2011-12-13T08:30:00.000+08:00

Stocks on Bursa Malaysia ended mixed as sentiment turned cautious amid the volatility in the share prices in regional markets. Sentiment remained cautious amid doubts that the pact for deeper economic integration among the European countries reached during last week’s EU summit could bring substantial results. The FBM KLCI was up 6.97 points or 0.48% to 1,467.10, after opening 3.6 points higher at 1,463.73. Losers led gainers by 362 to 357 while 325 counters were unchanged. Trading volume was higher at 1.595 billion shares worth RM1.129 billion from 1.296 billion shares worth RM1.057 billion shares on last Friday.

Taking cue from the strong overseas market performance last Friday, the FBM KLCI opened with an up gap of 3.6 points at 1,463.73 and traded higher to touch the intra-day high of 1,474.55 at late morning, thereafter, profit-taking activity came in and pushed the key index to close 7.45 points off high at 1,467.10. Chart-wise, the FBM KLCI formed a white inverted hammer candlestick which is a candle pattern that indicates possible bottom and reversal after a downtrend. Indeed, the key index tried to reverse up, but its effort was met with heavy resistance posted by the 5, 10 and 30-day SMA, and hence it may continue to consolidate. If the FBM KLCI is able to break through the immediate resistance zone at 1,468 to 1,475, then it may move higher to re-test the higher resistances.

MACD continued to slide lower and has made a dead-cross over its signal-line, flashing out a short term sell signal. Nonetheless, as MACD is still above the zero-line, current weakness may just well be part of a consolidation process is an uptrend. RSI (14) has hooked upward to 51.1, back to the neutral zone. Stochastic continued to slide lower to 54.3, indicating a continued loss in market momentum and a continuation of the short term down cycle. Readings from the indicators showed that the FBM KLCI is currently in consolidation mode with a downward bias.

The short term trend of the FBM KLCI remained down, but the key index has closed above the 20-day SMA. The medium term trend is sideways while the long term trend remained bearish. With the mixed signals, the FBM KLCI is likely to remain in sideways consolidation mode for a while until a clear sign of breakout is seen. Overnight, the Dow fell -162.87 points or -1.34% to close at 12,021.39. Today, the FBM KLCI is likely to trade within a range of 1,451 to 1,486.

This week's expected range: 1410 – 1529
Today’s expected range: 1451 – 1486

Resistance: 1474, 1480, 1486
Support: 1451, 1457, 1462

FBM KLCI - likely to further consolidate

2011-12-12T07:47:00.001+08:00

Stocks on Bursa Malaysia which languished in the red throughout trade last Friday closed lower across the board as caution prevailed and investors reduced their holdings on jitters over the outcome of the EU Summit. The FBM KLCI fell by 12.79 points or 0.87% to close at 1,460.13, and week-on-week, the benchmark index declined 28.89 points from 1,489.02 a week earlier. Losers led gainers by 515 to 213 while 278 counters were flat. A total of 1.296 billion shares valued at RM1.057 billion were traded compared with Thursday's volume of 1.622 billion shares worth RM1.175 billion. Weekly volume increased to 9.596 billion shares valued at RM6.641 billion from 6.21 billion shares worth RM6.74 billion.

The FBM KLCI was in a correction mode the whole of last week with all the negative news surrounding the market, where the S&P warned that credit ratings of most Euro-zone countries may be downgraded ahead of a summit on the European debt crisis, then, weaker-than-expected economic data from Japan and Australia, and Germany's rejection of proposals to add power to the Euro-zone's bailout fund all combined to dampen the local stock market last week.

On the weekly chart, The FBM KLCI formed a dark-cloud-cover candlestick pattern, a top reversal candle pattern which indicates the bears were in control throughout the week, and the key index is likely to further correct downward this week. On the daily chart, the FBM KLCI opened with a down gap of 8.22 points at 1,464.70 and fell to the intra-day low of 1,456.71 before rebounding to close off low at 1,460.13. The key index formed a black hammer-like candlestick which indicates sellers were strong in pushing down the key index but bargain-hunters came in to pick up selected heavyweights which lifted the index off low. As there is no clear bottoming sign yet, the FBM KLCI is likely to further consolidate. Immediate downside support zone is at 1,456 to 1,437, and the pivot low support at 1,424 is critical, if this level could not hold, then the key index is likely to re-visit the 1,400-point level.

Weekly MACD continued to climb higher but showed sign of tapering off, indicating a reduction in the weekly upward momentum. Daily MACD has continued to fall further, indicating a continued loss in the daily momentum. Nonetheless, it is still above the signal-line, which indicates the current down move is a correction. Weekly RSI (14) has hooked downward to 47.7 from 52.3 a week earlier, reflecting the pullback on the weekly chart and the return of the weekly relative strength to the mildly bearish zone. Daily RSI (14) has also plunged lower to 48.5 from 53.4, indicating the daily relative strength has turned mildly bearish. Weekly Stochastic continued to climb higher to 79.2, indicating the weekly up cycle is still intact. The daily Stochastic, however, has fell lower to 61, indicating a loss in the daily momentum and a continuation of the down cycle on the daily perspective. Readings from the indicators showed that the FBM KLCI is still fine on the weekly chart, but the daily chart showed that it is quickly losing its daily momentum and is turning bearish.

The short term trend of the FBM KLCI has turned down as the key index is now staying below the short term 5, 10, 20 and 30-day moving averages. The medium term trend is sideways, while the long term trend is bearish bias. Immediate support zone is at 1,456 to 1,424 with 1,450 being the important psychological support.

Last Friday, the Dow rebounded +186.56 points or +1.55% to close at 12,184.26. This week, the FBM KLCI is likely to trade within a range of 1,410 to 1,529, and for today, it is likely to trade within a range of 1,448 to 1,473.

This week's expected range: 1410 – 1529
Today’s expected range: 1448 – 1473

Resistance: 1465, 1469, 1473
Support: 1448, 1452, 1456

FBM KLCI - lower in line with weak regional performance

2011-12-09T08:28:00.002+08:00

Stocks on Bursa Malaysia ended broadly lower yesterday as wobbly external sentiments continued to weigh on the local bourse. Investors were cautious and stayed on the sidelines awaiting the outcome of European policymakers’ meeting this week, and economic data from Japan and Australia that signaled the global economy is slowing also influenced the local equity market sentiment. The FBM KLCI fell 10.07 points or 0.68% to close at 1,472.92 after opening 5.24 points lower at 1,477.75. Losers led gainers by 447 to 300 while 287 counters were unchanged. A total of 1.622 billion shares worth RM1.175 billion were traded compared with Wednesday’s 2.088 billion shares valued at RM1.770 billion.

The FBM KLCI opened with a down gap of 5.24 points at 1,477.75 and slid lower throughout the day with intermittent weak rebound, it hit the intra-day low of 1,469.93 before some late buying on selected blue-chips lifted the key index to close off low. Chart-wise, the FBM KLCI formed a bearish black candlestick with short lower shadow which indicates the bears were dominant for the day. With the down move yesterday, the key index has covered the gap formed on 1st December 2011, and is likely to further consolidate itself. Immediate support is at 1,469 to 1,464-point level provided by the 10, 20 and 30-day SMA. If this support zone could not hold, the key index is likely to slide further southward to the next lower support zone at 1,454 to 1,440.

MACD has hooked downward and the histogram too is turning shorter, indicating a change in the momentum from up to down. RSI (14) has turned downward to 53.4, indicating the relative strength of the key index is turning weaker even though it is still in the mildly bullish zone. Stochastic was at 69.9, and has crossed below the slow stochastic line, indicating the continued loss in the market strength and the beginning of a down cycle. Readings from the indicators showed that the FBM KLCI has turned weak or bearish, and is likely to further consolidate itself.

The short term trend of the FBM KLCI has turned down, while the medium and long term trend remained sideways. Immediate downside support zone is at 1,469 to 1,464 while the overhead resistance zone is at 1,478 to 1,485. With the overall volume slowed down, the overall market is likely to go into consolidation mode with some rotational play on the third liners. Overnight, the Dow fell -198.67 points or -1.63% to close at 11,997.70. Today, the FBM KLCI is likely to trade within a range of 1,461 to 1,486.

This week's expected range: 1410 – 1568
Today’s expected range: 1461 – 1486

Resistance: 1478, 1482, 1486
Support: 1461, 1465, 1469

FBM KLCI - higher on technical rebound

2011-12-08T08:33:00.001+08:00

Stocks on Bursa Malaysia ended on a firmer note yesterday after mixed trading throughout the day, up in line with an optimistic global equity market hoping for steps to contain the debt crisis at the European Union summit tomorrow. The market made a cautious rebound and was up in tandem with steadier regional bourses, after profit-taking activities yesterday. However, investors were also cautious of the China inflation data due this week. The FBM KLCI staged a rebound to end 2.07 points or 0.14% higher at 1,482.99 after opening 0.33 point lower at 1,480.59. Market breadth was positive with gainers led losers by 445 to 304 while 306 counters were unchanged. A total of 2.088 billion shares valued at RM1.770 billion were traded compared with 2.261 billion shares worth RM1.304 billion on Tuesday.

The FBM KLCI opened 0.33 point lower at 1,480.59 and slid lower to hit the intra-day low of 1,473.68 at noon. The key index continued to stay in the negative territory in the afternoon, and some late buying in selected blue-chips lifted the key index to close at the positive territory. Chart-wise, the FBM KLCI formed a hammer candlestick, a bottom reversal candle pattern which indicates that sellers were initially dominant in pushing down the index but later buyers came in to lift up the index. With the key index correcting to the low of 1,473.68 and rebounded from there, the correction to cover the gap is considered over, and the FBM KLCI is likely to stage a follow through rebound today. Immediate overhead resistance zone is at 1,485 to 1,493.

MACD was higher, but the histogram continued to shrink, indicating the upward momentum was weak. RSI (14) hooked up marginally to 57.5, indicating the relative strength is still mildly bullish. Stochastic, however, has continued to slide lower to 77.1, indicating a continued loss in market strength or momentum. Mixed readings from the indicators showed that the FBM KLCI is likely to continue its consolidation with an upward bias.

The FBM KLCI is in a short term correction mode as the index is currently below the 5-day simple moving average (SMA) but is still above the 10, 20 and 30-day SMA. The medium and longer term trend remained sideways. The key index is currently closing just above the 360-day SMA but is below the 120-day SMA at 1,487. If the key index is able to move above the 1,487-point level, then it might move higher to re-test the immediate resistance of 1,493-point. With the volume traded continue to remain high but with low share value, the overall market is likely to continue with its rotational play on the second and third liner stocks.

Overnight, the Dow rose +46.24 points or +0.38% to close at 12,196.37. Today, the FBM KLCI is likely to trade within a range of 1,467 to 1,493.

This week's expected range: 1410 – 1568
Today’s expected range: 1467 – 1493

Resistance: 1487, 1490, 1493
Support: 1467, 1470, 1476

Stocks to watch: RSAWIT, LONBISC

FBM KLCI - lower on profit-taking correction

2011-12-07T08:33:00.000+08:00

Stocks on Bursa Malaysia ended broadly lower yesterday in line with regional bourses influenced by the bearish sentiments following Standard & Poor’s downgrade warning on Europe. S&P warned that it would downgrade 15 Euro-zone countries en masse if European leaders failed to produce a credible plan to solve the region’s debt crisis at a summit later this week. The FBM KLCI fell 9.03 points or 0.61% to close at 1,480.92 after opening 5.14 points lower at 1,484.81. Losers led gainers by 493 to 255 while 281 counters were unchanged. A total of 2.261 billion shares worth RM1.304 billion were transacted compared with Monday’s 2.329 billion shares valued at RM1.333 billion.

The FBM KLCI opened with a down gap of 5.14 points at 1,484.81 and slid to the intra-day low of 1,478.12 within the first thirty minutes, and was hovering near 1,480-point level in a tight range for the rest of the day. Chart-wise, the FBM KLCI formed a bearish black candlestick which confirmed the top reversal signal formed over the previous three sessions. As predicted in the last report that the key index is likely to move lower to cover the gap, and it did. The FBM KLCI is now closing below the short term 5-day SMA and the long term 360-day SMA, hence, is likely to face further selling pressure to fall further. Immediate downside support zone is at 1,478 to 1,466.

MACD was higher but was tapering off, indicating a reduction in the upward momentum, supported by the histogram that turned shorter. RSI (14) has hooked downward to 56.9, indicating a reversal in the relative strength to the mildly bullish zone from the bullish zone. Stochastic has also hooked downward to 79.7 after entering the overbought zone the day before. Readings from the indicators showed that the FBM KLCI is currently undergoing a correction after the recent run up.

The short term trend of the FBM KLCI remained up while the medium and long term trend is still sideways. Judging from the price action, the key index is likely to correct further downward to cover the gap before it resumes its short term uptrend. Immediate downside support zone is at 1,478 to 1,466 and the overhead resistance zone is at 1,485 to 1,493. With no new catalyst to boost the market, the overall market is likely to continue to be dominated by rotational play in the third liners stocks. Overnight, the Dow rose another +52.30 points or +0.43% to close at 12,150.13. Today, the FBM KLCI is likely to trade within a range of 1,471 to 1,492.

This week's expected range: 1410 – 1568
Today’s expected range: 1471 – 1492

Resistance: 1485, 1488, 1492
Support: 1471, 1474, 1477

FBM KLCI - taking a breather

2011-12-06T08:31:00.000+08:00

Stocks on Bursa Malaysia, after going on a roller-coaster ride, ended on a firmer note as investors took a cautious stance on the local bourse. The local market’s direction was underpinned by waning investor sentiment in the region, reacting to the Chinese economy that showed further signs of slowing yesterday. However, the undertone of the local bourse remained firm. The FBM KLCI ended 0.93 point or 0.06% higher at 1,489.95 after opening 0.71 points better at 1,489. Gainers led losers by 407 to 337 while 303 counters were unchanged. A total of 2.329 billion shares, valued at RM1.333 billion, changed hands compared to 1.71 billion shares worth RM1.36 billion last Friday.

The FBM KLCI opened 0.71 point higher at 1,489.73 and fell to the intra-day low of 1,487.35 before rebounding to the intra-day high of 1,492.71. The key index was basically bouncing in and out of the positive and negative zone in a tight range for the whole day before settling marginally higher in the positive zone. Chart-wise, the FBM KLCI formed another Doji candlestick with a narrower day range, indicating indecision of the market direction and the key index was in consolidation mode. The formation of a shooting-star plus two Doji candlesticks over the last three trading sessions showed that the market was facing strong resistance when it came near the 1,500-point level, and was taking a breather after the strong up move. Immediate support is at 1,483 while the overhead resistance is at 1,493, and a break in either one will likely see the key index continue to move in that direction.

MACD continued to rise, indicating a continued improvement in the market momentum. RSI (14) was marginally higher at 60.6 compared with 60.3 on the previous day, indicating a slow down in the bullish relative strength. Stochastic was higher at 81.5 but showed sign of tapering, indicating a reduction the in upward market strength. Readings from the indicators showed that the upward strength of the FBM KLCI was slowing down and might go into a consolidation phase.

The short term trend of the FBM KLCI is up while the medium and longer term trend is sideways. The key index will have to breakthrough the overhead resistance zone of 1,493 to 1,509 in order to continue the uptrend; otherwise it may stage a pullback to close the gap at 1,472 to 1,483. The volume traded yesterday was high but the unit price was low, indicating the market was dominated by trading activities in lower liner stocks, and this trend is likely to continue. Overnight, the Dow rose +78.41 points or +0.65% to close at 12,097.83. Today, the FBM KLCI is likely to trade within a range of 1,481 to 1,499.

This week's expected range: 1410 – 1568
Today’s expected range: 1481 – 1499

Resistance: 1493, 1496, 1499
Support: 1481, 1484, 1487

FBM KLCI - turning bullish

2011-12-05T08:57:00.002+08:00

Stocks on Bursa Malaysia ended last Friday higher on hopes of a global recovery following positive news on the Euro-zone debt crisis and the recovery of the US economy. Despite weakness on regional markets, the benchmark FBM KLCI was able to sustain its positive momentum on buying interest in recently beaten down stocks. The FBM KLCI gained 3.76 points or 0.25% to 1,489.02 against Thursday's 1,485.26, and week-on-week, the benchmark index gained 57.47 points from previous Friday’s close of 1,431.55. A total of 1.71 billion shares worth RM1.36 billion changed hands compared to the 1.66 billion shares worth RM1.79 billion on Thursday, and weekly volume decreased to 6.21 billion shares, worth RM6.74 billion, from previous week’s 7.27 billion shares, worth RM5.51 billion.

Bursa Malaysia was closed for Awal Muharram holiday last Monday. The FBM KLCI staged a rebound when it re-opened on Tuesday buoyed by positive global sentiment where the key index ended 13.17 points higher at 1,444.72 supported by institutional buying of finance stocks after opening 6.22 points higher at 1,437.77. The FBM KLCI continued the up move into Wednesday with a gain of 27.38 points or 1.89% to close at 1,472.10. On Thursday, Taking cue from the 490 points gain of the Dow overnight, the FBM KLCI opened with a big up gap of 14.82 points at 1,486.92 and climbed to the intra-week high of 1,502.53 before pulling back on profit taking to close 13.16 points higher at 1,485.26. The benchmark index went into a consolidation mode on Friday, but still made another gain of 3.76 points to close the week 57.47 points higher week-on-week at 1,489.02.

On the weekly chart, the FBM KLCI formed a bullish white candlestick which indicates the bulls were in control for the week, and with the strong upward momentum seen last week, the key index is likely to move further upward this week. Immediate overhead resistances are posted by the 30-week simple moving average (SMA) at 1,497 and the 60-week SMA at 1,507. If the FBM KLCI can break through the resistance zone convincingly, then it would resume its bullish uptrend.

On the daily chart, the FBM KLCI formed a black spinning-top candlestick which indicates indecision of market direction and consolidation. The key index may continue to consolidate with a possibility of covering the gap formed on Thursday before continuing the uptrend. Immediate overhead resistance zone on the daily chart is at 1,493 to 1,509. If the FBM KLCI is able to sail through this strong resistance zone, then it may rally towards the next higher target level of 1,536, which is the 78.6% Fibonacci retracement level measuring from the 1,597 record high of July 11 to the recent pivot low of 1,310 on Sept 26, and the possible eventual target is 1,607 as indicated by the red dotted line.

Weekly MACD has hooked upward, indicating resumption in the weekly upward momentum after the recent consolidation. Daily MACD also made a bullish golden-cross over the signal-line, flashing a buy signal. Weekly RSI (14) has crossed above the 50-level to 52.3 from 41.9 the previous week, indicating a change of the weekly relative strength from bearish to mildly bullish. Daily RSI (14) was higher at 60.4, indicating the daily relative strength of the FBM KLCI has turned bullish. Weekly Stochastic continued the up cycle to reach 77.1, indicating a continued improvement in the weekly market strength. Daily Stochastic also surged higher to 79, about to enter the short term overbought zone. Readings from both the weekly and daily indicators showed that the FBM KLCI is turning bullish, and the upward momentum may carry it to a higher level.

The short term trend of the FBM KLCI has turned up, while the medium and longer term trend still remained sideways. Immediate strong overhead resistance zone is at 1,493 to 1,509 while the downside support zone is at 1,483 to 1,472. With the volume continued to stay above the 1 billion shares mark, the market is likely to remain active with rotational play alternating between the blue-chip stocks and the second and third liners.

Last Friday, the Dow fell -0.61 points or -0.01% to close at 12,019.42. This week, the FBM KLCI is likely to trade within a range of 1,410 to 1,568, and for today, it is likely to trade within a range of 1,473 to 1,504.

This week's expected range: 1410 – 1568
Today’s expected range: 1473 – 1504

Resistance: 1494, 1499, 1504
Support: 1473, 1478, 1483

FBM KLCI - higher but encountered heavy distribution

2011-12-02T08:40:00.003+08:00

Stocks on Bursa Malaysia closed higher yesterday amid fresh signs of global economic recovery, boosted by investors' appetite for riskier asset, and fund managers' renewed interest in finance counters after a recent sell down provided support to the key index. The benchmark FBM KLCI touched a high of 1,502.53 before ending at 1,485.26, a 0.89% or 13.16 point increase over Wednesday's close. The index had opened higher by 14.82 points at 1,486.92 and had hit a low of 1,484.42. Gainers led losers by 514 to 279 while 309 counters were unchanged. A total of 1.66 billion shares worth RM1.79 billion changed hands compared with 1.53 billion shares worth RM2.02 billion on Wednesday.

Taking cue from the 490 points gain of the Dow overnight, the FBM KLCI opened with a big up gap of 14.82 points at 1,486.92 and climbed higher to touch the intra-day high of 1,502.53. Heavy profit-taking activity pressed the key index to the intra-day low of 1,484.42 before rebounding slightly to close at 1,485.26. Chart-wise, the FBM KLCI formed bearish black shooting star candlestick, a top reversal candle pattern, which indicates heavy distribution or profit-taking when the key index approached the 1,500-point psychological level. Hence, the FBM KLCI is likely to further correct itself and cover the gap formed yesterday. Immediate support is expected at 1,480-point level provided by the 360-day moving average (MA) and the 1,472-point level.

MACD has turned upward and goes above the zero-line, indicating a change in the index’s momentum from bearish to bullish. Nonetheless, the MACD is still slightly below the signal-line, and a cross above the signal-line would generate a strong buy signal. RSI (14) continued to climb higher to 59.4 from 55.9, indicating an improvement in the relative strength and that the key index is turning bullish. Stochastic was higher at 62.2, crossing the mid range, indicating a continuation of the up cycle and that the market strength is turning stronger. Readings from the indicators showed that the FBM KLCI is gradually turning bullish.

With strong up move over the last two days, the short term trend of the FBM KLCI has turned upward, while the medium term trend is still sideways. The long term trend is still bearish, and nonetheless, the key index has now closed above the 360-day MA but is still below the cluster of other long term moving averages. If the FBM KLCI is able to breakthrough the strong resistance zone formed by the cluster of long term MAs at 1,500 to 1,510, then the key index would turn fully bullish. Immediate overhead resistance zone is at 1,493 to 1,502 while the downside support zone is at 1,484 to 1,472.

Overnight, the Dow fell -25.65 points or -0.21% to close at 12,020.03, and today, the FBM KLCI is likely to trade within a range of 1,460 to 1,521

This week's expected range: 1392 – 1480
Today’s expected range: 1460 – 1521

Resistance: 1497, 1509, 1521
Support: 1460, 1472, 1478

FBM KLCI - higher on continued buying in blue-chip stocks

2011-12-01T08:33:00.002+08:00

Stocks on Bursa Malaysia ended higher yesterday in line with regional bourses amid fresh buying on key heavyweights, but investors mostly remained cautious because of the lingering Euro-zone debt crisis. The FBM KLCI rose 27.38 points or 1.89% to close at 1,472.10 after opening 0.23 point lower at 1,444.49. Gainers led losers by 417 to 352 while 283 counters were unchanged. Turnover rose to 1.534 billion shares valued at RM2.024 billion from Tuesday’s 1.304 billion shares worth RM2.563.

The FBM KLCI opened 0.23 points lower at 1,444.49 and slipped to the intra-day low of 1,443.59 within the first five minutes after market opened, but buying support continued to push the key index higher throughout the day to end at the highest point of the day. Chart-wise, the FBM KLCI formed a bullish long white candlestick which showed that the bulls were fully in control for the day, and the strong upward momentum is likely to carry the key index higher today. After breaking through the resistance at 1,463, the FBM KLCI is likely to continue moving higher to test the next higher resistance zone at 1,477 to 1,493. .

MACD has turned upward, despite still slightly below the zero-line, and so is the histogram, indicating a change in the momentum from down to up. RSI (14) was higher at 55.9 from previous reading of 47.2, indicating a strong pick up in the relative strength and the FBM KLCI is turning mildly bullish from mildly bearish a day ago. Stochastic continued to climb higher to 38.6 from 25.9, indicating an improvement in the market strength and continuation of the up cycle. Readings from the indicators showed that the FBM KLCI is gradually turning bullish, and the improved momentum may carry it to higher level.

With the strong up move yesterday, the short term trend of the FBM KLCI has again turned up. The medium term trend is still sideways while the long term trend remained down. Immediate strong overhead resistance zone is at 1,480 to 1,493. If the FBM KLCI is able to breakthrough this resistance zone convincingly, then there is a strong likelihood that it may re-challenge the 1,500-point psychological resistance level. Overnight, the Dow rose +490.05 points or +4.24% to close at 12,045.68, and today, the FBM KLCI is likely to trade within a range of 1,424 to 1,501

This week's expected range: 1392 – 1480
Today’s expected range: 1424 – 1501

Resistance: 1482, 1492, 1501
Support: 1424, 1434, 1453

FBM KLCI - higher on bargain hunting

2011-11-30T07:52:00.001+08:00

Stocks on Bursa Malaysia closed higher yesterday buoyed by positive global sentiment which prompted investors to seek bargains among beaten-down stocks. The local bourse’s positive momentum was in tandem with major Asian markets amid hopes that Euro-zone leaders would unveil fresh measures to resolve the debt crisis. Sentiment was further lifted by a robust US Thanksgiving weekend retail sales, as well as, a firmer overnight close on Wall Street. The benchmark FBM KLCI ended 13.17 points or 0.92% higher at 1,444.72 supported by institutional buying of finance stocks, it opened 6.22 points higher at 1,437.77. Gainers beat losers by 471 to 273 while 272 counters were unchanged. Turnover reduced to 1.304 billion shares valued at RM1.563 from last Friday’s 1.577 billion shares worth RM1.098 billion.

Taking cue from the strong overnight performance on Wall Street, the FBM KLCI opened 6.22 points higher at 1,437.77 and moved higher throughout the whole morning session. It touched the intra-day high of 1,458.00 after the opening bell in the afternoon session, but heavy profit-taking activity sent the key index to close off high at 1,444.72. Chart-wise, the FBM KLCI formed a white inverted hammer candlestick which indicates the bulls were initially strong in pushing the key index higher but later the bears surfaced to press it down. As the key index managed to hit the intra-day high of 1,458, but pulled back to close at 1,444.72, it showed the resistance zone at 1,448 to 1,463 is strong. If it is able to break through this immediate resistance zone, then it is likely to resume its short term uptrend. Nonetheless, the FBM KLCI is currently still in consolidation mode but with an upward bias.

MACD continued to slide lower into the bearish zone, but its histogram turned shorter upward, indicating a reduction in the index’s downward momentum. RSI (14) has hooked up to 47.2, indicating the relative strength of the key index is currently mildly bearish. Stochastic has turned upward to 25.9, indicating a resumption of the short term up cycle and improvement of the market strength. Mixed signals from the indicators showed that the FBM KLCI is likely to continue with its current consolidation process but with an upward bias.

The short term trend of the FBM KLCI has turned sideways as the key index is now congested in a trading range. The medium term trend has also turned sideways while the long term trend remained bearish. Immediate overhead resistance zone is at 1,448 to 1,463 while the immediate downside support zone is at 1,430 to 1,423. A break in either zone will likely see the FBM KLCI continue moving in that direction. Overnight, the Dow rose +32.62 points or +0.28% to close at 11,555.63, and today, the FBM KLCI is likely to trade within a range of 1,414 to 1,479.

This week's expected range: 1392 – 1480
Today’s expected range: 1414 – 1479

Resistance: 1456, 1468, 1479
Support: 1414, 1425, 1435

FBM KLCI - likely to extend consolidation

2011-11-29T08:36:00.002+08:00

Stocks on Bursa Malaysia closed sharply lower last Friday ahead of the long weekend break and bearish regional Asian markets. Bursa Malaysia was closed yesterday for the Awal Muharram holiday. With no progress seen in the resolution of the Euro-zone debt crisis, Asian shares sank as deepening sovereign debt in the Euro-zone threatened economic growth globally. Selling pressure emerged in key heavyweights such as MISC and Telekom Malaysia, pushing the FBM KLCI 16.44 points or 1.13% lower to close at 1,431.55, its lowest level since October 13, and week-to-week, the key index declined 22.85 points from 1,454.40 on previous Friday. Decliners led advancers by 463 to 298 while 256 counters were unchanged. Total weekly volume declined to 7.27 billion shares worth RM5.51 billion from 10.92 billion shares worth RM7.29 billion the previous week.

On the weekly chart, the FBM KLCI fell for the fourth consecutive weeks since the key index hit the high of 1,493.28 on October 31st. It formed a bearish black candlestick with a down gap from previous week’s candle, indicating the index was driven down on fear and the pullback correction from previous week has continued. On the daily chart, the key index formed a bearish black Marubozu candlestick in Harami position which indicates the bear were selling down the index-link counters ahead of the long weekend. Judging from the candle formation on both the weekly and daily charts, the FBM KLCI is likely to continue to consolidate in the coming week.

Weekly MACD as well as the weekly histogram has turned downward, reflecting the pullback correction in the FBM KLCI. Daily MACD has crossed below the zero-line, indicating the key index has again turned bearish, flashing a sell signal. Weekly RSI (14) continued to slide lower to 41.9 and daily RSI (14) has hooked down to 42.1, indicating both the weekly and daily relative strength has continued to weaken and is approaching the bearish zone. Weekly Stochastic was at 72 and has tapered off, indicating a loss in the upward momentum, and was in consolidation. Daily Stochastic has hooked downward to 20.1, reflecting the pulled back in the key index. Readings from the weekly and daily indicators showed that the FBM KLCI is currently in consolidation state and is relatively weak, technically. Hence, the consolidation process might prolong.

The main trend of the FBM KLCI remained down and bearish. The key index has now pulled back about 38.2% of the range from the pivot low of 1,310.53 formed on September 26th to the pivot high of 1,493.28 on October 31st. If the support at the 38.2% Fibonacci retracement level of 1,423 could not hold, then it is highly likely that the FBM KLCI would slide further to the 50% retracement level at 1,401.

Overnight, the Dow rose +291.23 points or +2.59% to close at 11,523.01. This week, the FBM KLCI is likely to trade within a range of 1,392 to 1,480, and for today, it is likely to trade within a range of 1,409 to 1,464

This week's expected range: 1392 – 1480
Today’s expected range: 1409 – 1464

Resistance: 1443, 1453, 1464
Support: 1409, 1419, 1425

FBM KLCI - higher on a strong rebound

2011-11-25T08:42:00.001+08:00

Stocks on Bursa Malaysia rebounded to close higher yesterday, helped by gains in banking stocks. Asian markets, with the exception of Japan, also bounced back from their recent losses to close higher on bargain hunting. Cautious sentiment, however, remained on growing concern over the impact of the Euro-zone debt crisis and the weak China’s manufacturing activities against the backdrop of a poor global economic outlook. The FBM KLCI rose by 14.82 points or 1.03% to close at 1,447.99 after opening 1.26 points lower at 1,431.91. Advancers led decliners by 499 to 277 while 289 counters were unchanged. Turnover, however, fell to 1.499 billion shares worth RM1.077 billion from Wednesday’s 1.508 billion shares worth RM1.127 billion.

The FBM KLCI opened 1.26 points lower at 1,431.91 and fell to the intra-day low of 1,426.64 within the first thirty minutes of trade, and it rebounded to gradually climb higher for the rest of the day to close at the day’s high. Chart-wise, the FBM KLCI formed a bullish white candlestick which indicates bottom reversal and a breakout from last two day’s consolidation range. With the bullish up move yesterday, the key index is likely to continue its upward momentum to move higher today. Immediate overhead resistance zone is at 1,450 to 1,460 with the gap area at 1,452 to 1,454 being the main hurdle.

MACD continued to slide lower and just crosses below the zero-line, flashing a bearish signal. However, the histogram has turned shorter upward, reflecting the rebound and indicating a reduction in the downward momentum. RSI (14) has turned upward to 47.5, indicating an improvement in the relative strength to mildly bearish. Stochastic has turned upward to 22.8, and crossed above the slow stochastic line, making a reversal after hitting the short term oversold zone, and this might possibly indicates the beginning of a short term up cycle. Readings from the indicators showed that the FBM KLCI has possibly hit a short term bottom and is making a rebound.

The main trend of the FBM KLCI remained down and bearish. However, for the short term, the key index has closed above the 5-day moving average (MA), giving out a first signal of a possible short term trend reversal. Nonetheless, the key index is still below the 10, 20 and 30-day MAs, until and unless the current rebound can carry the index through the resistance zone formed by these short term MAs at 1,457 to 1,468, the present rebound may turn out to be just a dead-cat-bounce in a bear market. With volume continued to shrink, the overall market may continued to be dominated by the second and third liners in the active scene while FBM KLCI may continue with its consolidation.

US market was closed yesterday for the Thanksgiving Holiday. Today, the FBM KLCI is likely to trade within a range of 1,412 to 1,470.

This week's expected range: 1410 – 1520
Today’s expected range: 1412 – 1470

Resistance: 1456, 1463, 1470
Support: 1412, 1419, 1433

FBM KLCI - lower amid bearish sentiment

2011-11-24T08:27:00.001+08:00

Stocks on Bursa Malaysia ended lower yesterday as sentiment remained bearish amid concerns over a possible global economic recession. Regional markets also fell following weak China economic data and Europe and US debt crisis which were derailing growth in Asian countries. However, some bargain-hunting helped the FBM KLCI narrow losses with the market barometer closing 4.82 points or 0.34% easier at 1,433.17. Decliners led advancers by 450 to 281 while 271 counters were unchanged. Volume increased to 1.51 billion shares worth RM1.13 billion from 1.27 billion shares worth RM1.04 billion recorded on Tuesday.

The FBM KLCI opened 2.35 points lower at 1,435.64 on weak US market performance overnight, and plunged to the intra-day low of 1,424.19 at mid morning. It hovered near the low for a major part of the day, but late buying on selected blue-chips helped lift the key index to close off low at 1,433.17. Chart-wise, the FBM KLCI formed a black hammer-like candlestick which is a possible bottom reversal signal. However, the black body indicated that the market sentiment is bearish bias. From the candlesticks formed over the last two days, it looks like the FBM KLCI found some support when it approaches the 1,423-point pivot low support area. Nonetheless, the support zone at 1,423 to 1,420 is critical, if this zone cannot hold, it is highly likely that the key index will slide towards the critical psychological support level at 1,400.

MACD continued to slide lower towards the zero-line but is still marginally above it, indicating an increased in the downward momentum. RSI (14) hooked downward slightly to 41.2, indicating the short term relative strength of the FBM KLCI is at the borderline of the mildly bearish zone, and there is a high possibility of it turning bearish. Stochastic has gently hooked up to 11.4 after hitting the low of 8.8 the day before. Nonetheless, it is still below the slow stochastic line and is in the oversold zone, and the short term down cycle is still intact. Readings from the indicators showed that the FBM KLCI is currently weak, with a high possibility of turning more bearish.

The trend of the FBM KLCI remained down and bearish. However, the price action of the key index over the last two days showed that it is trying to stabilize at current level, but whether it can hold well at current level will very much depends on the development of external factors. Immediate downside support zone is at 1,423 to 1,400, while the overhead resistance zone is at 1,439 to 1,450.

Overnight, the Dow fell -236.17 points or -2.05% to close at 11,257.55. Today, the FBM KLCI is likely to trade within a range of 1,409 to 1,455.

This week's expected range: 1410 – 1520
Today’s expected range: 1409 – 1455

Resistance: 1441, 1448, 1455
Support: 1409, 1417, 1425

Stocks to watch: DIGISTA, DIGISTA-WA

FBM KLCI - rebounded to close marginally higher

2011-11-23T08:41:00.001+08:00

Stocks on Bursa Malaysia closed mostly lower yesterday as sentiment remained cautious on renewed fears of a global recession. The concern follows the delay in resolving the Euro-zone debt crisis and a heavy US budget deficit. However, bargain-hunting in selected heavyweights helped push the FBM KLCI into positive territory, closing 3.91 points or higher at 1,437.99. Decliners led advancers 398 to 327, while 298 counters were unchanged. Volume was lower at 1.27 billion shares worth RM1.04 billion from 1.42 billion shares worth RM1.16 billion on Monday.

Taking cue from the almost 250 points dropped of the Dow, the FBM KLCI opened with a down gap of 3.28 points at 1,430.80 and plunged to the intra-day low of 1,425.47 in the first hour of trade. However, bargain-hunting on selected blue-chips lifted the key index off low to close near the intra-day high level. Chart-wise, the FBM KLCI formed a white piercing-line candlestick, which is a bottom reversal candle pattern. However, as the candlestick could not pierce above the mid-point of the previous day’s candlestick at 1,443.03, the rebound yesterday was considered a weak one. Nonetheless, the FBM KLCI might continue moving higher today with a follow through rebound, and the immediate overhead resistance is at 1,443-point level, follow by the psychological resistance level at 1,450.

MACD continued to slide lower, indicating an increased in the downward momentum. Nevertheless, it is still above the zero-line, and the current weakness is just part of a short term correction. RSI (14) has hooked up slightly to 42.8, reflecting the weak rebound, and indicated that the relative strength of the key index is still mildly bearish. Stochastic was at 8.8, has fell deeper into the short term oversold zone, indicating a possible rebound might be expected ahead. Readings from the indicators showed that the FBM KLCI is currently undergoing a correction or consolidation process, and this is likely to continue until there is confluence of reversal signals from the indicators.

The trend of the FBM KLCI remained down and bearish as the key index continue to stay below the short, medium and long term moving averages. Immediate downside support zone is envisaged at 1,425 to 1,400, while the immediate upside resistance zone is at 1,443 to 1,452. With the gross volume continued to shrink, the current consolidation process is likely to extend.

Overnight, the Dow fell -53.59 points or -0.46% to close at 11,493.72. Today, the FBM KLCI is likely to trade within a range of 1,416 to 1,452.

This week's expected range: 1410 – 1520
Today’s expected range: 1416 – 1452

Resistance: 1443, 1447, 1452
Support: 1416, 1420, 1429

Stocks to watch: HIBISCS, HIBISCS-WA, JCY

FBM KLCI - sharply lower on continued selling pressure

2011-11-22T08:29:00.001+08:00

Stocks on Bursa Malaysia closed sharply lower yesterday, reflecting the gloomy sentiment in regional markets that remained concerned with the unresolved Euro-zone debt crisis. The bearish statement made by China’s vice-premier, Wang Qishan, that the global economic outlook remained grim and of an impending global recession also affected the market. The FBM KLCI fell 20.32 points or 1.40% to 1,434.08 after opening 2.64 points lower at 1,451.76. Decliners led advancers by 661 to 176 while 194 counters were unchanged. Total volume decreased to 1.416 billion shares worth RM1.161 billion from 1.462 billion shares worth RM1.196 billion last Friday.

The FBM KLCI opened with a down gap of 2.64 points at 1,451.76 and slid lower throughout the day to end the day at the lowest point on bearish sentiment. Chart-wise, the FBM KLCI formed a bearish long black Marubozu candlestick which indicates the market was falling on fears and liquidation by the bears, and sellers were fully in control. The key index is likely to continue falling further today to test the next lower support zone at 1,423 to 1,420, if this support zone could not hold, then there is a strong likelihood that the FBM KLCI may retreat to the 50% Fibonacci retracement level at 1,401.

MACD continued to slide lower, indicating an increased in the bearish momentum. RSI (14) has dropped further to 41.1, indicating the relative strength of the key index is turning bearish from mildly bearish. Stochastic has fallen lower to 10.6, into the short term oversold zone, indicating the bearish market strength is picking up. Readings from the indicators showed that the FBM KLCI is undergoing a strong pullback correction after the recent 132 points rally from the low of 1,310.53, and the correction is likely to continue for a while until there are signs of settling down.

The trend of the FBM KLCI has again turned down and bearish as the key index is now closing below the short, medium and long term moving averages. The critical support level to watch out is the 1,400-point psychological level, and if this level could not hold, the key index may slide further downward to the 61.8% Fibonacci retracement level at 1,380.

Overnight, the Dow tumbled -248.85 points or -2.11% to close at 11,547.31. Today, the FBM KLCI is likely to trade within a range of 1,410 to 1,470.

This week's expected range: 1410 – 1520
Today’s expected range: 1410 – 1470

Resistance: 1446, 1458, 1470
Support: 1410, 1422, 1428

FBM KLCI - in consolidation mode

2011-11-21T08:34:00.001+08:00

Stocks on Bursa Malaysia remained in the red at the end of trading last Friday with the benchmark index closing lower as investors remained cautious on the possibility of slower growth for the local economy. The FBM KLCI ended 11.07 points, or 0.75% lower at 1,454.40. On a week-to-week basis, the FBM KLCI declined 14.35 points from previous Friday's closing of 1,468.75. Decliners led advancers by 588 to 197, while 258 counters were unchanged. Turnover declined to 1.46 billion shares, worth RM1.20 billion from Thursday’s 1.586 billion shares valued at RM1.175 billion. Total weekly volume rose to 10.924 billion shares worth RM7.286 billion from 9.203 billion units valued at RM6.049 billion the previous week.

The FBM KLCI was basically in correction and consolidation mode the whole of last week. It rose 10.12 points to 1,478.87 on Monday, but slipped 1.65 points to 1,477.22 on Tuesday due largely to the European debt woes. The FBM KLCI hit the intra-week high of 1,487.37 on Wednesday but pulled back to close 0.38 point lower at 1,476.84. The correction continued into Thursday and Friday where the key index ended the week at its lowest point of 1.454.40.

On the weekly chart, the FBM KLCI formed a bearish black candlestick which closed at the lowest point of the week and was down for the third consecutive week. This indicates that the key index is still in the correction phase after the recent run up and is likely to continue to consolidate. If the psychological support at 1,450 could not hold, the key index is likely to slide further down to test the 1,433 support provided by the 10 and 100-day moving averages (MA).

On the daily chart, The FBM KLCI formed a bearish black candlestick with long upper shadow, and was down for the third consecutive days. The candlestick formation indicated that the key index is still in consolidation and is likely to continue doing so. Immediate support zone is at 1,450 to 1,431-point level, provided by the 40, 50 and 60-day moving averages. If this support zone could not hold, the next likely target is the 38.2% and the 50% Fibonacci retracement levels located at 1,423 and 1,401, measuring from the pivot low of 1,310 to the pivot high of 1,493.

Weekly MACD continued to move higher after making the golden cross but is tapering off, indicating a reduction in the upward momentum. Daily MACD, however, continued to slide lower, indicating the key index has entered the consolidation phase on the daily chart. Weekly RSI (14) was lower at 45.6, indicating the weekly relative strength is still mildly bearish. Daily RSI (14) fell to 47.7, crossing below the 50-level for the first time after crossing above it on October 11, indicating the daily relative strength has again turned mildly bearish. Weekly Stochastic was higher at 71.8, but is tapering off, indicating a slow down in the weekly strength. The daily Stochastic, however, continued to slide lower to 31.8, indicating the loss in daily market strength and continuation of the daily down cycle. Readings from the weekly and daily indicators showed that the FBM KLCI is currently in a consolidation phase which might extend until there are signs that it is over.

The short term trend of the FBM KLCI has turned down, whereas the medium term trend is sideways, while the long term trend is also sideways with a bearish bias. The immediate critical support zone is at 1,450 to 1,431 while the overhead resistance zone is at 1,468 to 1,488. Technically, the FBM KLCI has entered a correction and consolidation phase, and as school holiday had started, the overall market is likely to gradually go slow supported by the dwindling volume over the last few days.

Last Friday, the Dow rose +25.43 points or +0.22% to close at 11,796.16. This week, the FBM KLCI is likely to trade within a range of 1,410 to 1,520, and for today, it is likely to trade within a range of 1,435 to 1,483

This week's expected range: 1410 – 1520
Today’s expected range: 1435 – 1483

Resistance: 1464, 1474, 1483
Support: 1435, 1445, 1449

FBM KLCI - lower in line with regional weakness

2011-11-18T08:30:00.001+08:00

Stocks on Bursa Malaysia closed broadly lower yesterday as late selling pressure on some of the key heavyweights pushed the FBM KLCI to close at its day low yesterday, reflecting investor concerns about weaker global sentiments. Losses were mostly seen in banking and plantation stocks as the market fell for the second consecutive day. The FBM KLCI dropped 11.37 points, or 0.77%, to close at 1,465.47 after opening 1.32 points lower at 1,475.52. Losers led gainers by 378 to 344 while 288 counters were unchanged. Turnover fell to 1.586 billion shares valued at RM1.175 billion from 2.03 billion shares worth RM1.47 billion on Wednesday.

The FBM KLCI opened 1.32 points lower at 1,475.52 and rebounded to touch the intra-day high of 1,476.80. However, selling pressure pushed the key index lower to stay in the negative zone throughout the day with intermittent rebound, and late selling pressure on some key heavyweights pressed it to close at the low of the day. Chart-wise, the FBM KLCI formed a bearish black candlestick which indicates heavy selling pressure and the bear was fully in control. With the bearish down move yesterday, the FBM KLCI had broken the lower support of the triangle pattern, and is likely to continue sliding southward. As the key index has also broken the 20-day MA support, it is likely to slide lower to the 30-day MA support area at 1,452.

MACD continued to slide lower, with the histogram getting longer southward, indicating an increase in the downward momentum. Nonetheless, as the MACD is still above the zero-line, the current weakness can be viewed as a short term correction to the strong up move from 1,310 to 1,493. RSI (14) was lower at 51.9, indicating the short term relative strength is turning neutral. Stochastic was lower at 52.3, indicating a continuation of the short term down cycle and extension of market weakness. Readings from the indicators showed that the momentum of the FBM KLCI is turning weak for the short term, and the consolidation process may prolong.

The short term trend of the FBM KLCI is sideways with a downward bias as the key index is now closing below the 5, 10 and 20-day moving averages but is still above the 30-day MA, and a close below the 1,452-point level would confirm that the trend has turned down. The critical support zone for the FBM KLCI is at 1,452 to 1,433 provided by the 30 to 60-day MAs. With the volume falling to below 2 billion shares, the market is likely to gradually turn slow in tandem with the consolidation process.

Overnight, the Dow fell -134.86 points or -1.13% to close at 11,770.73. Today, the FBM KLCI is likely to trade within a range of 1,451 to 1,505.

This week's expected range: 1435 – 1516
Today’s expected range: 1450 – 1488

Resistance: 1473, 1481, 1488
Support: 1450, 1457, 1461

FBM KLCI - marginally lower

2011-11-17T08:26:00.001+08:00

Stocks on Bursa Malaysia closed lower yesterday as investors reduced their holdings in selected heavyweights and penny stocks. Losses were mostly seen in Petronas Chemicals and Tenaga which dragged down the FBM KLCI by 0.38 point or 0.03% to close at 1,476.84. Decliners led advancers by 462 to 323 while 285 counters were unchanged. Turnover eased to 2.03 billion shares worth RM1.47 billion from 2.98 billion shares worth RM1.55 billion on Tuesday.

The FBM KLCI opened with an up gap of 3.94 points higher at 1,481.16 and surged to intra-day high of 1,487.37 within the first half an hour of trading, and heavy profit-taking which appeared pushed the key index to the intra-day low of 1,470.09 before rebounding to close marginally lower. Chart-wise, the FBM KLCI formed a high wave black spinning-top candlestick which indicates indecision of market direction with a bearish bias. The trading range of the key index has increased to 17 points yesterday, indicating high volatility, but still remained within the sideways range of the last two weeks. Immediate downside support zone is at 1,470 to 1,452, while the upside resistance zone is at 1,488 to 1,493.

MACD continued to slide lower after making a dead-cross yesterday, indicating a continued loss in momentum and entering into an extended consolidation phase. RSI (14) was marginally lower at 56.8, indicating the key index is still mildly bullish. Stochastic slid lower to 64.2, indicating a continuation of the down cycle and loss in market strength or momentum. Readings from the indicators showed that the FBM KLCI is currently undergoing a sideways consolidation and the phase is likely to extend until clear signs of breakout is observed.

The immediate short term trend of the FBM KLCI is sideways range-bound with the upper boundary at 1,493 while the lower boundary is at 1,452. An immediate support provided by the 20-day MA at 1,467 is critical, as a close of the FBM KLCI below this level is likely to see the key index plunging further to the next lower support at 1,449 provided by the 30-day MA. The FBM KLCI is likely to continue its sideways consolidation with a downward bias, and rotational play on the third liners is also likely to continue.

Overnight, the Dow fell -190.5 points or -1.58% to close at 11,905.59. Today, the FBM KLCI is likely to trade within a range of 1,451 to 1,505.

This week's expected range: 1435 – 1516
Today’s expected range: 1451 – 1505

Resistance: 1487, 1496, 1505
Support: 1451, 1460, 1468

FBM KLCI - marginally lower with good support

2011-11-16T08:34:00.001+08:00

Stocks on Bursa Malaysia ended in red yesterday as sentiment remained bearish due largely to European debt woes. Nevertheless, the FBM KLCI closed off its lows with interest seen in selective heavyweights and penny stocks. At the close, the benchmark index slipped 1.65 points or 0.11% to 1,477.22 after moving between 1,473.71 and 1,478.75. Decliners led advancers by 466 to 341 while 258 counters were unchanged. A total of 2.984 billion shares valued at RM1.554 billion changed hands compared with Monday’s 2.849 billion shares worth RM1.885 billion.

The FBM KLCI opened with a down gap of 3.21 points at 1,475.66 and slid to the intra-day low of 1,473.71. The key index then rebounded to hit the intra-day high of 1,478.75 at noon, and was hovering between the high and low levels till closing. Chart-wise, the FBM KLCI formed a small white spinning-top candlestick which indicates indecision of market direction but with an upward bias. The key index is likely to continue its current sideways consolidation with an upward bias for today, as it is still trapped within the triangle. Immediate overhead resistance zone is at 1,485 to 1,493 while the downside support zone is at 1,473 to 1,466.

MACD has made a dead-cross over its signal-line, flashing a sell signal, and indicated that the upward momentum is diminishing and the correction may prolong. RSI (14) was marginally lower at 56.9, reflecting the mild correction. Stochastic continued to dive lower to 74.1, indicating a continuation of the down cycle and market weakness. Readings from the indicators showed that the FBM KLCI is currently undergoing a consolidation phase, and this may prolong until there is clear signs of a breakout.

The immediate short term trend of the FBM KLCI has turned sideways as indicated by the 5 and 10-day moving averages (MA) which has turned flat, while the short term trend as represented by the 20 and 30-day MAs remained up. The medium and long term trend is now sideways. The FBM KLCI is likely to continue its consolidation, and judging from the high volume with a low unit price, the index-link counters will continue to consolidate while the penny stocks will continue to dominate the active counters list.

Overnight, the Dow rose +17.18 points or +0.14% to close at 12,096.16. Today, the FBM KLCI is likely to trade within a range of 1,469 to 1,484.

This week's expected range: 1435 – 1516
Today’s expected range: 1469 – 1484

Resistance: 1480, 1482, 1484
Support: 1469, 1471, 1474

FBM KLCI - higher in range-bound trading

2011-11-15T08:28:00.002+08:00

Stocks on Bursa Malaysia closed firmer yesterday on active buying activities as investors took stock of the better performance of Wall Street last Friday. The FBM KLCI rose 10.12 points or 0.69% to 1,478.87, with gains mostly seen in selected heavyweights like IOICORP, TENAGA, DiGi and GENM. The benchmark index, which opened 10.96 points higher at 1,479.71, moved between 1,478.13 and 1,484.88 throughout the day. Gainers thumped losers by 647 to 193 while 246 counters were unchanged. Total market volume rose to 2.849 billion shares worth RM1.885 billion from last Friday’s 2.068 billion units valued at RM1.23 billion.

The FBM KLCI opened with an up gap of 10.96 points at 1,479.71 and surged to the intra-day high of 1,484.88 within the first fifteen minutes, but heavy profit-taking activity sent the key index down to the intra-day low of 1,478.13. The key index was moving sideways between these two points throughout the day. Chart-wise, the FBM KLCI formed a bearish black inverted hammer candlestick which indicates sellers were dominant for the day, and the key index is likely to further consolidate itself today. The FBM KLCI is currently sideways range-bound within a triangle pattern, and a breakout on either side of the triangle would see the key index continue moving in that direction.

MACD continued to slide lower and is just slightly above the signal-line, indicating a continued loss in the upward momentum, and is in a short term consolidation mode. RSI (14) hooked up to 57.6, reflecting the rebound and the relative strength of the key index is still in the mildly bullish zone. Stochastic was lower at 79.4, indicating a loss in the momentum and market strength, a crossing below the 80 level indicates a probable beginning of a down cycle. Readings from the indicators showed that the FBM KLCI has gone into a short term consolidation mode. The consolidation may extend until a clear breakout sign is observed.

The immediate short term trend of the FBM KLCI has turned sideways, and so is the medium term trend. The long term trend is also turning sideways with a bearish bias. Immediate downside support zone is at 1,470 to 1,466 while the overhead resistance zone is at 1,485 to 1,490. With the FBM KLCI going into consolidation, the overall market is likely to remain active dominated by trading in penny stocks as can be seen from the high volume but low value trend over the last few days. Investors are advise to trade cautiously, and don’t be greedy.

Overnight, the Dow fell -74.70 points or -0.61% to close at 12,078.98. Today, the FBM KLCI is likely to trade within a range of 1,469 to 1,492.

This week's expected range: 1435 – 1516
Today’s expected range: 1469 – 1492

Resistance: 1484, 1488, 1492
Support: 1469, 1473, 1476

FBM KLCI - likely to be range-bound with an upward bias

2011-11-14T08:32:00.002+08:00

Stocks on Bursa Malaysia closed mixed last Friday with penny stocks making gains while the blue-chips continued to consolidate. The FBM KLCI gave up earlier gains to close 3.90 points or 0.26% lower at 1,468.75, on profit-taking in heavyweights, and week-on-week, the benchmark index declined 8.76 points from 1,477.51 the previous Friday. Gainers beat losers by 425 to 310 with 282 counters flat. Turnover was lower at 2.068 billion shares worth RM1.23 billion from 2.644 billion shares worth RM1.462 billion previously. Total weekly volume increased to 9.203 billion shares valued at RM6.049 billion from 8.15 billion shares valued at RM7.22 billion the previous week.

Bursa Malaysia was closed last Monday for Hari Raya Aidiladha holiday. Taking cue from the strong performance of Wall Street on last Monday, the FBM KLCI opened on last Tuesday with an up gap of 5.77 points at 1,483.28 and touched the intra-day high of 1,489.91 before profit-taking activity pressed it to close at 1,480.46, making a small gain of 2.95 points. The key index rose 9.18 points or to 1,489.64 on Wednesday moving in tandem with higher regional Asian markets and a firmer overnight Wall Street. Taking cue from the hefty fall of 389 points on the Dow overnight, the FBM KLCI lost 16.99 points to 1,472.65 on Thursday after plunging to the intra-day low of 1,466.25, losing 23.39 points at its worst, and the key index continued its consolidation and closed Friday 3.90 points lower at 1,468.75.

On the weekly chart, the FBM KLCI formed a bearish black candlestick which serves to confirm the top reversal signal issued by the black hanging-man candlestick formed the previous week, and hence the key index is likely to extend its correction or consolidation this week. Immediate downside support zone is envisaged at 1,466 to 1,452.

On the daily chart, the FBM KLCI formed a bearish dark-cloud-cover candlestick pattern which indicates heavy profit-taking after hitting the intra-day high of 1,478.33, and the key index is likely to continue its consolidation today with immediate support zone at 1,466 to 1,460, while the overhead resistance zone is at 1,478 to 1,493. Since hitting the recent high of 1,493.28 on 31st October 2011, the key index had moved into sideways consolidation mode forming a triangle pattern, and it may continue to move up and down within this triangle until a decisive breakout on either side of the triangle. If the FBM KLCI is able to breakout decisively above the 1,493-point level, it will rally to test the next higher resistance zone at 1,500 to 1,515.

Weekly MACD had made a golden-cross above its signal-line, flashing a buy signal. This bullish signal came after three months since the weekly MACD made a dead-cross on 29th July 2011. If the FBM KLCI is able to close above the 1,510-point level, the weekly MACD would cross the zero-line, and the key index would turn long term bullish again. Daily MACD, however, continued to slide lower, indicating the key index is still in consolidation on the daily timeframe.

Weekly RSI (14) continued to dip lower to 48.05 from 49.55 the previous week, reflecting the current consolidation. Anyway, the weekly relative strength is still in the neutral zone with a mildly bearish bias. Daily RSI (14) continued to slide lower to 54.6, indicating a continued loss in the short term relative strength due to the consolidation, nonetheless, the daily relative strength is still in the mildly bullish zone.

Weekly Stochastic continued to climb higher to 70.1 from 60.7 the previous week, indicating a continued improvement of the weekly market momentum and strength. Daily stochastic has turned downward, and crossed below the slow stochastic line, reflecting the consolidation in the key index. Readings from the indicators showed that the FBM KLCI is gradually turning bullish from the weekly perspective, while from the daily perspective, it has gone into a short term consolidation. The key index shall re-gain its upward momentum after the short term consolidation is over, back by the positive weekly momentum.

The immediate short term trend of the FBM KLCI has turned sideways as the key index has now closed below the 5 and 10-day MAs but is still above the 20 and 30-day MAs. The medium term trend has also turned sideways with the 50 and 60-day MAs turning flat. The long term trend, however, is still bearish bias with the FBM KLCI continued to stay below the long term moving averages. For the coming week, the FBM KLCI is likely to continue its range-bound consolidation until a decisive breakout above the 1,493-point resistance level or a downward breakout below the 1,440-point support level is observed. While the key index-link counters continue to consolidate themselves, the overall market may still be dominated by active trading in penny stocks.

Last Friday, the Dow rose +259.89 points or +2.19% to close at 12,153.68. This week, the FBM KLCI is likely to trade within a range of 1,435 to 1,516, and for today, it is likely to trade within a range of 1,455 to 1,488.

This week's expected range: 1435 – 1516
Today’s expected range: 1455 – 1488

Resistance: 1476, 1482, 1488
Support: 1455, 1462, 1465

FBM KLCI - lower but with good buying support

2011-11-11T08:37:00.001+08:00

Stocks on Bursa Malaysia closed sharply lower yesterday as the market pull back after three days of gains, and was in line with the fall on regional markets amid an escalating debt crisis in Europe. Renewed fears over the unresolved debt problem in Italy, which is pressuring the country to seek a bailout, fuelled concerns over its impact on the Euro-zone and global economy. The FBM KLCI fell 16.99 points or 1.14% to 1,472.65 at the close. Losers led gainers by 568 to 227 with 212 counters unchanged. Turnover was lower at 2.644 billion shares worth RM1.462 billion from the 2.677 billion shares worth RM1.818 billion on Wednesday.

Taking cue from the hefty fall on Wall Street overnight, the FBM KLCI opened with a big down gap of 20.41 points at 1,469.23 and plunged to the intra-day low of 1,466.25, losing 23.39 points at its worst. The key index rebounded and recovered some lost grounds, where it touched the intra-day high of 1,474.73 before settling at 1,472.65. Chart-wise, the FBM KLCI formed a bullish small white spinning-top like candlestick which indicates buying support for the key index amid a bearish sentiment, and the key index may continue its rebound today but with limited upside, as the FBM KLCI is now closing below the 5, 10, and 360-day moving averages (MA), and the gap formed yesterday may together post as a strong resistance zone.

MACD has hooked downward, and the histogram also turned shorter, indicating a loss in the momentum. Nonetheless, the MACD is still above the signal-line as well as the zero-line, hence the current weakness may well be just a correction in an uptrend. RSI (14) plunged to 56 from 62.6 a day ago, indicating the relative strength of the key index has turned mildly bullish from bullish. Stochastic has hooked downward to 89.9, reflecting the pullback in the key index, but is still above its slow stochastic line. Readings from the indicators showed that the FBM KLCI is currently undergoing a correction, and nonetheless, the underlying tone is still bullish.

The short term trend of the FBM KLCI is up. However, the pullback yesterday has brought the key index below the 5 and 10-day MA, signifying the immediate short term trend may turn sideways and goes into consolidation. The medium term trend has turned sideways and the long term trend remained bearish. Immediate overhead resistance zone is at 1,475 to 1,481 while the downside support zone is at 1,466 to 1,461. As the week is approaching the weekend, the market may trade cautiously today with the penny stocks likely to continue to dominate the active scene.

Overnight, the Dow rose +112.85 points or +0.96% to close at 11,893.79. Today, the FBM KLCI is likely to trade within a range of 1,459 to 1,484.

This week's expected range: 1433 – 1534
Today’s expected range: 1459 – 1484

Resistance: 1477, 1480, 1484
Support: 1459, 1462, 1467

Stocks to watch: JCY

FBM KLCI - uptrend continued

2011-11-10T08:29:00.001+08:00

Stocks on Bursa Malaysia closed higher yesterday, driven by gains on penny stocks and selected blue chips. The local bourse extended its uptrend since last Friday, in tandem with higher regional Asian markets and a firmer overnight Wall Street. The improved sentiment on regional markets was driven by the latest news on developments in Italy's debt crisis, as news of Italian Prime Minister Silvio Berlusconi's impending resignation lifted confidence that a new leader would act more effectively to tackle the country's debt woes. The FBM KLCI rose by 9.18 points or 0.62% to close at 1,489.64 after opening 0.75 point better at 1,481.21. Gainers beat losers by 562 to 222 with 268 counters unchanged. Turnover was higher at 2.677 billion shares worth RM1.818 billion from 1.812 billion shares worth RM1.538 billion.

The FBM KLCI opened 0.75 point higher at 1,481.21 and surged to the intra-day high of 1,490.74 within the first hour of trade, and it pulled back on profit-taking and moved sideways for the rest of the day before a last minute buying of selected heavyweights which pushed it to close near the high of the day. Chart-wise, the FBM KLCI formed a bullish white candlestick which indicates continuation of the current uptrend, and is likely to move higher to re-test the recent high at 1,493.28. If the key index is able to breakthrough this resistance level decisively, then it may rally higher to test the 1,500-point psychological level.

MACD continued to move higher, and the histogram also turned longer for the first time after a five days consolidation, indicating a resumption of the upward momentum. RSI (14) was higher at 62.6, indicating the short term relative strength has turned bullish. Stochastic has crossed above the slow stochastic line and continued to move higher, indicating a continuation of the up cycle and improvement of the market strength. Readings from the indicators showed that the FBM KLCI is gradually turning bullish after the recent correction.

The short term trend of the FBM KLCI remained up, and the medium term trend has turned sideways as the 50 and 60-day moving averages (MA) has tuned flat. The long term outlook is still slightly bearish even though the key index is now above the 360-day MA but is still below most of the longer term MAs. The FBM KLCI will have to break through the strong overhead resistance zone at 1,500 to 1,510 formed by a cluster of long term MAs in order for it to turn fully bullish. The overall market is likely to remain active dominated by trading in penny stocks judging from the high volume but low value traded over the last two day.

Overnight, the Dow fell -389.24 points or -3.20% to close at 11,780.94. Today, the FBM KLCI is likely to trade within a range of 1,474 to 1,500.

This week's expected range: 1433 – 1534
Today’s expected range: 1474 – 1500

Resistance: 1493, 1497, 1500
Support: 1474, 1477, 1483

FBM KLCI - higher in cautious trade

2011-11-09T08:35:00.001+08:00

Stocks on Bursa Malaysia closed marginally higher on continued buying momentum in selective counters. However, finance counters succumbed to selling pressure in line with the cautious market sentiment in regional markets. The broader Asian bourses showed a mixed performance underlined by cautious trading, as the Euro-zone debt contagion spread to Italy. The FBM KLCI was 2.95 points or 0.20% higher at 1,480.46 after opening 5.77 points higher at 1,483.28. Gainers beat losers by 408 to 329 with 279 counters unchanged. Turnover was lower at 1.812 billion shares worth RM1.538 billion from 2.302 billion shares worth RM1.512 billion last Friday.

The FBM KLCI opened with an up gap of 5.77 points at 1,483.28 and climbed to the intra-day high of 1,489.91 in the first hour of trade. However, selling pressure due to profit-taking activity pressed the key index to the intra-day low of 1,476.81 before some late buying in selected blue-chips lifted it to close off low. Chart-wise, the FBM KLCI formed a black spinning-top candlestick which indicates indecision of market direction with sellers being more dominant for the day, and hence, the key index is likely to continue to consolidate today. Immediate overhead resistance zone is at 1,488 to 1,493, and a decisive breakout from this resistance zone might see the key index rally towards the 1,500-point level.

MACD was marginally higher, but its histogram turned shorter, indicating the upward momentum is weakening. RSI (14) was slightly higher at 60.3, and has moved into the bullish zone. Stochastic was higher at 83.7 and has just crossed above the slow stochastic line, indicating a possible further up move. Readings from the indicators showed that the FBM KLCI is in consolidation with a bullish upward bias.

The short term trend of the FBM KLCI is up while the medium term trend has turned sideways as the 50 and 60-day moving averages are turning flat. The long term outlook is still slightly bearish as the key index is still staying below most of the longer term moving averages. Immediate overhead resistance zone is envisaged at 1,488 to 1,493 while the immediate downside support zone is at 1,477 to 1,468. Volume traded over the last few days was high but the unit value was low, indicating the market activity was focus on the lower price stocks. Rotational play on second and third liners is likely to continue while the heavyweights may consolidate.

Overnight, the Dow rose +101.79 points or +0.84% to close at 12,170.18. Today, the FBM KLCI is likely to trade within a range of 1,461 to 1,503.

This week's expected range: 1433 – 1534
Today’s expected range: 1461 – 1503

Resistance: 1488, 1496, 1503
Support: 1461, 1469, 1474

Stocks to watch: HIBISCS, HIBISCS-WA, JCY, LATEXX, BENALEC

FBM KLCI - likely range-bound with an upward bias

2011-11-08T08:31:00.002+08:00

Stocks on Bursa Malaysia ended higher last Friday, spurred by strong technical rebounds in regional markets. The market rebounded as sentiment was boosted by positive developments in Greece as Greek Prime Minister George Papandreou was prepared to drop a plan for a referendum on a European Union bailout package, upbeat job market data from US and our better-than-expected trade data. Malaysia's trade surplus stood at RM9.63 billion in September while total trade rose 4.9% to RM107.73 billion. The FBM KLCI rose 15.14 points, or 1.03%, to close at 1,477.51, after opening 8.48 points higher at 1,470.85, while on a weekly basis, the key index lost 4.31 points from previous week’s 1,481.82. Gainers led losers by 591 to 194 while 248 counters were flat. Turnover rose to 2.3 billion shares worth RM1.51 billion from 1.75 billion shares worth RM1.14 billion on Thursday. Total volume for the week increased to 8.15 billion shares valued at RM7.22 billion from 6.033 billion shares worth RM7.1 billion previously. Bursa Malaysia was closed yesterday for the celebration of Hari Raya Aidiladha holiday.

The FBM KLCI went through a volatile week last week with the key index opening on Monday 2.84 points higher at 1,484.66 and rose 10.07 points to close at 1,491.89 after hitting an intra-day low of 1,475.71. On Tuesday, The FBM KLCI fell 16.25 points to close at 1,475.64 as investors took their cues from Wall Street's losses due to weak leads from European markets as Greece government announced that the country would hold a referendum on a new aid package. Taking cue from the heavy losses on Wall Street overnight, the FBM KLCI opened on Wednesday with a down gap of 7.84 points at 1,467.80 and plunged to the intra-day low of 1,457.50 before rebounding to close 4.69 points lower at 1,470.95. On Thursday, the selling pressure continued with the key index plunging to the intra-week low of 1,452.64 before late hour bargain hunting lifted it to close 8.58 points lower at 1,462.37, and on Friday the FBM KLCI staged a rebound to finish the week 15.14 points higher at 1,477.51.

On the weekly chart, the FBM KLCI formed a hanging-man candlestick, which is a top reversal candle pattern, and the appearance of this candlestick pattern after a strong up move indicates the key index might reverse or consolidate. The key index is sitting right below the 20-week moving average (MA) which is currently at 1,486.91, and is above the 80-week MA at 1,466.51 and it might consolidate within this range. If it is able to break above last week’s high of 1,493, it might have a good chance of testing the psychological resistance level of 1,500, but the 30 and 60-week MAs at 1,505 may post as a strong resistance level.

On the daily chart, the FBM KLCI formed a bullish white candlestick which closed at the highest point of the day on last Friday after three consecutive days of losses. As it opened with a strong up gap and closed at the highest point of the day, the key index is likely to stage a follow through up move today. Immediate overhead resistance zone is at 1,486 to 1,493 with the 61.8% Fibonacci retracement level as a key resistance. Nonetheless, the strong resistance zone lies at 1,500 to 1,511 form by a cluster of long term moving averages, if the FBM KLCI is able to break through this zone, then it would again turn bullish for the long term.

Weekly MACD has just made a golden-cross above its signal-line, flashing a buy signal. Nonetheless, it is still below the zero-line. Daily MACD has hooked up, but its histogram continued to turn shorter, indicating the daily upward momentum is reducing. Weekly RSI (14) has hooked downward to 49.5 after touching 50.3 the previous week, reflecting the correction last week and is in the neutral zone. On the flip side, daily RSI (14) has turned upward to 59.5 from 55.4 on Thursday, indicating the daily relative strength has again moved towards the bullish zone. Weekly stochastic continued to climb higher to 60.7, indicating a continued improvement of the weekly market strength and the up cycle. Daily Stochastic was at 81.2 and has hooked up slightly but is still below its daily slow stochastic line, reflecting the rebound last Friday. Readings from the indicators showed that the FBM KLCI is gradually turning bullish on the weekly chart, while on the daily chart, it was already mildly bullish.

The short term trend of the FBM KLCI is up, and the medium term trend represented by the 50 and 60-day MAs has turned flat, while the long term trend represented by a cluster of long term MAs is also flat. For this week, the FBM KCI is likely to move range-bound with an upward bias. Overnight, the Dow rose +85.15 points or +0.71% to close at 12,068.39. This week, the FBM KLCI is likely to trade within a range of 1,433 to 1,534, and for today, it is likely to trade within a range of 1,461 to 1,487.

This week's expected range: 1433 – 1534
Today’s expected range: 1461 – 1487

Resistance: 1481, 1484, 1487
Support: 1461, 1464, 1471

FBM KLCI - lower on consolidation

2011-11-04T08:37:00.000+08:00

Stocks on Bursa Malaysia closed mostly lower yesterday on profit-taking, particularly on the 30 counters of the key index. Nonetheless, most of the selling pressures were well-absorbed by the market which has already expected a consolidation in line with regional peers. The FBM KLCI declined 8.58 points, or 0.6%, to close at 1,462.37 after opening 0.92 point higher at 1,471.87. Losers led gainers by 524 to 226 while 273 counters were unchanged. Turnover rose to 1.75 billion shares worth RM1.14 billion compared with 1.56 billion shares worth RM1.7 billion on Wednesday.

The FBM KLCI opened 0.92 point higher at 1,471.87 and surged to the intra-day high of 1,473.45, but profit-taking activity which emerged pushed the key index lower to the intra-day low of 1,452.64 before late hour bargain hunting lifted it to close off low. Chart-wise, the FBM KLCI formed a bearish black candlestick with long lower shadow, and it covered the body of the previous candle. This formation indicates the selling pressure was strong but buying support managed to lift the key index to almost the mid range for the day, and is closing above previous day’s low after breaching it, indicating the selling pressure was quite well absorbed. The FBM KLCI is likely to stay range-bound today with immediate overhead resistance at 1,473 and the downside support at 1,452.

MACD continued to slide lower and the histogram was also shorter, indicating a continued loss in momentum. Nonetheless, as the MACD is still above the signal-line as well as above the zero-line, current weakness is viewed as a correction to the recent uptrend. RSI (14) slide lower to 55.4, indicating a continued loss in the relative strength and the key index is sliding further downward into the mildly bullish zone. Stochastic continued to slide lower to 80.6, indicating a continuation of the market weakness and down cycle. Readings from the indicators showed that the FBM KLCI is currently undergoing a correction and may continue to consolidate.

The short and medium term trend of the FBM KLCI remained up, while the long term trend is still bearish. However, for the immediate term the key index may go into range-bound consolidation as it is now below the 5 and 10-day moving averages (MA) but is still above the 20 and 30-day MAs. Immediate strong overhead resistance zone is at 1,473 to 1,476 while the downside support zone is at 1,452 to 1,448. Overnight, the Dow rose +208.43 points or +1.76% to close at 12,044.47. Today, the FBM KLCI is likely to trade within a range of 1,431 to 1,494.

This week's expected range: 1432 – 1529
Today’s expected range: 1431 – 1494

Resistance: 1473, 1484, 1494
Support: 1431, 1442, 1452

FBM KLCI - lower with strong buying support seen

2011-11-03T08:42:00.002+08:00

Stocks on Bursa Malaysia ended mixed yesterday as key heavyweights staged a rebound amid concerns on Greece's referendum plan that may threaten Europe's debt rescue plan. The market rebounded after Monday's sell-off, following the bounce in regional markets. The FBM KLCI declined 4.69 points, or 0.32%, to 1,470.95 after opening 7.84 points lower at 1,467.8. Gainers led losers by 374 to 363 while 285 counters were unchanged. A total of 1.56 billion shares valued at RM1.7 billion were traded compared with 1.19 billion shares worth RM1.29 billion on Tuesday.

Taking cue from the heavy losses on Wall Street overnight, the FBM KLCI opened with a down gap of 7.84 points at 1,467.80 and plunged to the intra-day low of 1,457.50 within the first forty five minutes. It rebounded at late morning and continued to move higher in the afternoon session to hit the intra-day high of 1,473.13 before easing to close at 1,470.95. Chart-wise, the FBM KLCI formed a white hammer candlestick, a bottom reversal candle pattern, which indicates strong buying support after the initial selling on fear, and the key index might continue its upward move today. Immediate resistance is at 1,475-point level.

MACD has turned downward, and the histogram also getting shorter, indicating a weakening of the momentum. Nonetheless, as the MACD is still above the signal-line and the zero-line, the current weakness may just be part of a short term correction. RSI (14) fell lower to 58.5, indicating the relative strength is turning weaker, but is still in the mildly bullish zone. Stochastic continued to slide lower to 88.7, reflecting the pullback correction. Readings from the indicators showed that the FBM KLCI is currently undergoing a pullback correction, and the technical picture has not turn bearish. The key index might continue its upward move after the correction is over.

The short and medium term trend of the FBM KLCI is up, while the long term trend remained bearish. The key index has tested the support of the 10-day moving average (MA) and rebounded off it, but is now below the 5-day MA. Hence, the FBM KLCI is likely to be range-bound today unless it can break above the 5-day MA at 1,478, then it may rally higher to retest the recent high of 1,493. With volume remained above the 1 billion shares mark, the market is likely to see active rotational play on second and third liners while the heavyweights may continue its consolidation.

Overnight, the Dow rose +178.08 points or +1.53% to close at 11,836.04. Today, the FBM KLCI is likely to trade within a range of 1,445 to 1,489.

This week's expected range: 1432 – 1529
Today’s expected range: 1445 – 1489

Resistance: 1477, 1483, 1489
Support: 1445, 1451, 1461

Stocks to watch: MEGB

FBM KLCI - pullback correction

2011-11-02T08:32:00.001+08:00

Stocks on Bursa Malaysia ended sharply lower yesterday on profit-taking amid the uncertainty in the short-term market outlook. Investors took their cues from Wall Street's losses due to weak leads from European markets as Greece government announced that the country would hold a referendum on a new aid package. The FBM KLCI fell 16.25 points, or 1.09%, to close at 1,475.64, after opening 7.76 points lower at 1,484.13. Losers led gainers by 583 to 198 while 213 counters were flat. Turnover was moderate with a volume of 1.19 billion shares worth RM1.29 billion compared with 1.33 billion shares worth RM1.58 billion on Monday.

Taking cue from the weak performance of Wall Street overnight, the FBM KLCI opened with a down gap of 7.76 points at 1,484.13 and was moving sideways in a tight range for the morning session. Heavy selling pressure appeared in the afternoon dragged the key index to close near the low of the day. Chart-wise, the FBM KLCI formed a bearish black candlestick which indicates heavy selling pressure and a reversal, and the key index is likely to further correct itself today. Immediate downside support is envisaged at 1,470, 1,465 1,459 and 1,450.

MACD continued to climb higher but is tapering off, and the histogram has turned shorter, indicating a slow down in the upward momentum. RSI (14) has hooked downward to 60.3, reflecting the pulled back. Stochastic has turned downward and crossed below the slow stochastic line, reflecting the reversal in the key index. Readings from the indicators showed that the FBM KLCI is currently undergoing a pulled back correction.

The short and medium term trend of the FBM KLCI remained up, while the long term trend is still bearish as the key index is still below most of the long term moving averages (MA). The 360-day MA at 1,470 and the 10-day MA at 1,459 are critical support level to watch, a break below both these support levels would likely see the FBM KLCI plunging further to the 1,450-point psychological support level. As the overall volume traded is shrinking, the market is likely to go into a consolidation mode.

Overnight, the Dow fell another -297.05 points or -2.48% to close at 11,657.96. Today, the FBM KLCI is likely to trade within a range of 1,460 to 1,497.

This week's expected range: 1432 – 1529
Today’s expected range: 1460 – 1497

Resistance: 1483, 1490, 1497
Support: 1460, 1467, 1471

FBM KLCI - closing October on a strong note

2011-11-01T08:31:00.002+08:00

Stocks on Bursa Malaysia ended higher yesterday with the appetite for risk remaining intact from last week amid the positive global sentiment. Buying interest from retails and local funds provided the impetus for the uptrend, with focus in heavyweights and low-liners such as rubber glove stocks. The FBM KLCI rose 10.07 points or 0.7% to 1,491.89 after opening 2.84 points higher at 1,484.66. Advancers led decliners by 426 to 318 while 282 counters were unchanged. Turnover was moderate with a volume of 1.33 billion shares valued at RM1.58 billion compared with 1.88 billion shares worth RM2.29 billion last Friday.

The FBM KLCI opened 2.84 points higher at 1,484.66 but experienced profit-taking activity which pressed the key index lower throughout the morning session to the intra-day low of 1,475.71. The afternoon session saw strong buying interest in selected blue-chip stocks which pushed the barometer to the intra-day high of 1,493.28 before easing to close at 1,491.89. Chart-wise, the FBM KLCI formed a bullish white candlestick with long lower shadow which indicates the bears were initially in control but later the bulls fought back and took control, and hence, the key index is likely to continue its uptrend today. The FBM KLCI is likely to face strong resistance at the 1,500-point psychological level.

MACD continued to climb higher, indicating a continuation in the upward momentum. RSI (14) was higher at 66.5, indicating an increased in the short term bullishness. Stochastic was also higher at 96.7, indicating a strong market strength and the up cycle is in continuation. Readings from the indicators showed that the FBM KLCI is currently in a bullish state. However, the key index may face some strong profit-taking when RSI readings approach the 70 level.

The short and medium term trend of the FBM KLCI remained up, while the key index has just broken above the 360-day long term moving average (MA), giving out a first signal that the long term trend is gradually turning bullish. However, the key index is still below the other long term 120, 200, 240 and the 300-day MAs, which together formed the resistance zone at 1,500 to 1,513-points level. If only the key index can break through this zone, it is considered fully bullish for the long term.

Overnight, the Dow fell -276.10 points or -2.26% to close at 11,955.01. Today, the FBM KLCI is likely to trade within a range of 1,463 to 1,511.

This week's expected range: 1432 – 1529
Today’s expected range: 1463 – 1511

Resistance: 1499, 1505, 1511
Support: 1463, 1469, 1480

Stocks to watch: ZELAN, SALCON, MBSB

FBM KLCI - likely to trend higher

2011-10-31T08:38:00.002+08:00

Stocks on Bursa Malaysia ended last Friday higher in tandem with steady gains on regional markets, prompted by progress in Europe's debt plan and better growth of the US gross domestic product (GDP) for the third quarter. Besides, the key index was lifted by the positive mood in Wall Street on Thursday, where the DJIA jumped 2.86 per cent and the broader S&P 500 surged 3.43 per cent. The FBM KLCI rose 10.89 points or 0.74% to end at 1,481.82 after opening 9.29 points higher at 1,480.22, and week-to-week, the key index advanced 42.99 points from previous Friday's closing of 1,438.83. Gainers led losers by 470 to 338 while 319 counters were flat. Turnover stood at 1.877 billion shares worth RM2.295 billion from Thursday’s 1.877 billion worth RM2.413 billion. While total weekly volume declined to 6.033 billion shares worth RM7.097 billion from 7.391 billion shares worth RM6.584 billion the previous week.

On the weekly chart, the FBM KLCI formed a bullish white candlestick which indicates reversal from the consolidation on the previous week, and a continuation of the weekly uptrend. With the strong up move last week, the key index is likely to continue moving higher this week targeting the 1,500 to 1,508 resistance zone, where the 1,508 resistance is posted by the 30 and 60-week moving averages (MA).

On the daily chart, the FBM KLCI gap up 9.29 points at 1,480.22 and surged to hit the 61.8% Fibonacci retracement (FR) level at 1,488 and pulled back strongly, and it formed a white inverted hammer candlestick with a big up gap from the previous candle, which indicates pushed up for distribution. This candlestick formation on the daily chart looks like a shooting-star candle formation which could indicates possible reversal, hence, the key index might possibly take a breather to consolidate itself before making further attempt to challenge higher target levels.

Weekly MACD continued to rise, albeit below the zero-line, but is approaching the signal-line, indicating a continued pick up in the weekly momentum. Daily MACD has continued to surge higher into the positive zone and the daily histogram also continued to rise, indicating a resumption of the daily upward momentum after the recent consolidation. Weekly RSI (14) continued to move higher to 50.3 and has made an important breakthrough to cross the 50-level, indicating the weekly relative strength has turned bullish for the first time after it broke below the 50-level on the August 5th,2011. Daily RSI (14) climbed higher to 64.4, indicating the daily relative strength is getting more bullish. Weekly Stochastic continued to climb higher to 53.4, indicating a continuation in the weekly up cycle and continued improvement of the weekly market strength. Daily Stochastic was also higher at 94.5, indicating a continuation in the daily up cycle and the daily market strength is very strong. Readings from both the weekly and daily indicators showed that the FBM KLCI is turning bullish, and the upward momentum may carry the key index higher in the short term.

The short and medium term trend of the FBM KLCI is currently up as the key index was closing above the short and medium term moving averages. For the long term, the key index has just crossed above the 360-day MA but is still below the 120, 200, 240 and the 300-day MAs, which together formed a resistance zone at 1,500 to 1,513-point levels. If the FBM KLCI is able to breakthrough this strong resistance zone, then it would turn very bullish. With Euro-zone debt crisis settling down and the improvement in US economic data, the market is likely to continue its uptrend. Rotational plays on second and third liners are likely to continue with focus on oil & gas, construction, property and consumers sectors.

Last Friday, the Dow rose +22.56 points or +0.18% to close at 12,231.11. This week, the FBM KLCI is likely to trade within a range of 1,432 to 1,529, and for today, it is likely to trade within a range of 1,467 to 1,499.

This week's expected range: 1432 – 1529
Today’s expected range: 1467 – 1499

Resistance: 1488, 1493, 1499
Support: 1467, 1472, 1477

Hibiscus speeds up drill time

2011-10-29T16:58:00.004+08:00

PETALING JAYA: Hibiscus Petroleum Bhd has significantly cut down on the time it needs to venture into the oil and gas exploration sector in the Middle East with the recent purchase of a 35% stake in Middle East-based Lime Petroleum.

“The gestation period of four years, normally associated with this kind of oil and gas projects, has been cut down to 12 months for us.

“Now, within 12 months, we are ready to drill,” managing director Kenneth Pereira said.

“The Lime package is a nice one, with drillable opportunities; it is also to be listed soon, likely on London's AIM, so there will be more money to be raised in future for expansion plans,” he tells StarBizWeek in an interview.

Lime has three concessions in the Middle East, namely Ras Al Khaimah (1,200km sq), Sharjah (1,600km sqd), both in United Arab Emirates (UAE) and the largest one in Oman (16,900 km sq), with the fourth potential concession in Fujeirah, also in UAE.

Read more...

FBM KLCI - turning bullish

2011-10-28T08:34:00.001+08:00

Stocks on Bursa Malaysia finished on a firmer note yesterday on gains in selected blue chips on the back of positive market sentiments globally. Asian markets rose after players took new positions following the decision by European policymakers to contain the Euro-zone debt crisis and the private sector investors agreed to take a 50 per cent "haircut" in Greek bonds. The FBM KLCI rose 13.13 points or 0.9% to end at 1,470.93, after opening 3.75 points higher at 1,461.55. Gainers led losers by 689 to 165 while 195 counters were unchanged. Turnover advanced to 1.877 billion worth RM2.413 billion from 950.64 million worth RM1.075 billion Tuesday.

The FBM KLCI opened with an up gap of 3.75 points at 1,461.55 and continued to move higher throughout the day with intermittent mild pullback. It touched the intra-day high of 1,474.47 before pulling back on profit-taking to close at 1,470.93. Chart-wise, the FBM KLCI formed a bullish white candlestick which indicates buyers were in control of the day, and the key index is likely to continue moving higher today. The FBM KLCI has for the first time in one and a half month closed above the 360-day moving average (MA) since it broke below this long term support on 12th September. The key index is likely to stage a rally to move higher towards the next target of 1,500-point.

MACD continued to climb higher and its histogram also turned green for the first time after staying in the red for six consecutive days, indicating a continuation of the upward momentum and flashing a buy signal. RSI (14) is higher at 61.9, indicating the short term relative strength of the key index has turned bullish. Stochastic has moved higher to 91.1 after crossing over its slow stochastic line, indicating a pick up in the market strength and continuation of the up cycle. Readings from the indicators showed that the FBM KLCI has turned bullish after recent consolidation, and the upward momentum is likely to carry the index higher.

The short and medium term trend of the FBM KLCI is currently up, while the long term has just turned positive with the key index closing above the 360-day MA yesterday. The FBM KLCI is likely to continue with its upward move to challenge the 1,500-point target soon. Immediate overhead resistance zone is at 1,480 to 1,491 with 1,488, the 61.8% Fibonacci retracement level, being a key resistance level. Immediate downside support zone is at 1,459 to 1,448. With overall volume surging to 1.8 billion shares, the market is likely to show more bullishness in trading.

Overnight, the Dow rose +339.51 points or +2.86% to close at 12,208.55. Today, the FBM KLCI is likely to trade within a range of 1,448 to 1,489.

This week's expected range: 1389 – 1503
Today’s expected range: 1448 – 1489

Resistance: 1477, 1483, 1489
Support: 1448, 1454, 1462

FBM KLCI - breaking out of its consolidation

2011-10-27T08:28:00.001+08:00

Stocks on Bursa Malaysia closed mixed on Tuesday with the benchmark index recouping its earlier losses as key index link counters staged a late rebound in line with the mixed trading on regional bourses. However, players are cautious ahead of Wednesday’s meeting by European policymakers to resolve the Euro-zone debt crisis. The FBM KLCI rose 7.78 points, or 0.54%, to close at 1,457.80, after opening 3.44 points better at 1,453.46. Decliners led gainers by 373 to 299 while 289 counters were unchanged. Turnover declined to 950.64 million worth RM1.075 billion from Monday’s 1.238 billion shares worth RM1.3 billion. Bursa Malaysia was closed yesterday for Deepavali celebration.

The FBM KLCI opened with an up gap of 3.44 points at 1,453.46 and surged to the morning session high of 1,455.65 within the first fifteen minutes. Profit-taking activities then pushed it to the intra-day low of 1,448.12 before late hour bargain hunting activity on selected blue-chips which pushed the key index to close at the highest point of the day. Chart-wise the FBM KLCI formed a hammer candlestick which indicates sellers were initially strong in pressing down the key index but later buyers surfaced to push it up. The FBM KLCI is likely to continue to climb higher today with immediate overhead resistance zone at 1,462 to 1,470. The resistance at 1,469 posted by the 360-day moving average (MA) is particularly important, as a close above this level would indicate the return of the long term bulls.

MACD continued to climb higher, but its histogram was slightly shorter, indicating a slow down in the upward momentum. RSI (14) was higher at 58.8, indicating the key index is gradually turning more bullish even though it is still in the mildly bullish zone. Stochastic has made a hooked up and crossed above its slow stochastic line, indicating a resumption in the up cycle after a brief consolidation. Readings from the indicators showed that the FBM KLCI is breaking out of it short term consolidation, and may continue to move higher.

With the up move on Tuesday, the FBM KLCI has resumed its short term uptrend as it is now above all the short term moving averages, and is likely to continue to move higher. The medium term trend has also turned up as the key index has closed above the 50 and 60-day MAs decisively. The long term trend remained down at the moment, however, the FBM KLCI is likely to challenge the 360-day MA soon, and if it is able to break above the resistance post by the 360-day MA at 1,469, the move may trigger a rally towards the 1,500-point level.

Overnight, the Dow rose +162.42 points or +1.39% to close at 11,869.04 after reports that China will buy European bonds. Today, the FBM KLCI is likely to trade within a range of 1,441 to 1,468.

This week's expected range: 1389 – 1503
Today’s expected range: 1441 – 1468

Resistance: 1461, 1465, 1468
Support: 1441, 1444, 1451

Stocks to watch: HIBISCS, HIBISCS-WA

Hibiscus Petroleum buys 35% of Lime Petroleum for US$55m

2011-10-25T17:15:00.006+08:00

KUALA LUMPUR: Hibiscus Petroleum Bhd (Hibiscus), has executed two agreements to acquire a 35% equity stake in Lime Petroleum Ltd for a total of US$55 million.

Hibiscus managing director Kenneth Pereira said on Tuesday, Oct 25 the deal comprises of a share subscription agreement and a share purchase agreement.

"Under the share subscription agreement, Hibiscus will subscribe for 76.9 million new shares or 27.2% equity stake in Lime Petroleum for a cash consideration of US$50 million. Hibiscus will also purchase a 7.8% equity stake in Lime Petroleum from the current major shareholder, Rex Oil and Gas Ltd, through a share purchase agreement, for a cash consideration of US$5 million.

Once both agreements are finalised, which are subject to approvals by Hibiscus' shareholders and the Securities Commission, the special purpose acquisition company will hold 35% equity stake in Lime Petroleum, according to Pereira.

He added that Hibiscus was expecting an additional concession to be included into Lime Petroleum, bringing the total concessions under this company to at least four by the end of this year.

Written by Kamarul Azhar of theedgemalaysia.com
Tuesday, 25 October 2011 11:52

For full details of the said transaction please click on HIBISCUS

FBM KLCI - higher in line with firmer regional performance

2011-10-25T08:38:00.001+08:00

Stocks on Bursa Malaysia closed higher yesterday in line with firmer regional markets. The rise in the local and other bourses in Asia was driven by New York's strong gains last Friday coupled with optimism of a solution to the Euro-zone debt crisis and a possible roll-out of the third quantitative easing. Gains in blue chips like Genting, Axiata, Maxis and Tenaga Nasional lifted the market significantly. The FBM KLCI rose 11.19 points or 0.78% to end at 1,450.02 after opening 11 points better at 1,449.83. Gainers led losers by 556 to 203 while 254 counters were flat. Turnover declined to 1.238 billion shares worth RM1.3 billion from 1.253 billion shares worth RM1.095 billion last Friday.

Taking cue from the strong performance of Wall Street last Friday, the FBM KLCI opened with an up gap of 11 points at 1,449.83 and climbed to the intra-day high of 1,462.06 at mid morning. The key index then moved sideways, and heavy profit-taking activity which appeared in mid afternoon pushed the index to close near the low of the day. Chart-wise, the FBM KLCI formed a gravestone Doji which indicates the bulls were initially strong in pushing up the key index, but later the bears surfaced and pressed it back down. The key index has resumed its immediate short term uptrend as it is now closing above the 5-day moving average (MA), as well as is above the 1,450-point psychological resistance turned support level, and might continue its upward move to re-test the recent high of 1,465.48.

MACD was slightly higher, but the histogram turned shorter, indicating a loss in the upward momentum. Nonetheless, the MACD is still in the positive zone. RSI (14) has hooked upward to 56.8, indicating the relative strength of the key index has pick up slightly to become mildly bullish. Stochastic slid lower to 79.3, indicating a continuation of the down cycle and weakening of the market strength. Readings from the indicators showed that the FBM KLCI is mildly bullish but is still in a consolidation mode.

The short term trend of the FBM KLCI remained up, while the medium and long term trend is still down. The key index is now sitting right below the medium term 60-day MA which is currently at 1,452.86, a decisive close above this level will see the FBM KLCI moving higher to test the next resistance level posted by the 360-day MA at 1,469, and a decisive close above the 360-day MA may trigger a rally towards the 1500-point psychological resistance level. With volume maintaining above the 1 billion shares mark, the overall market is likely to remain active with rotational play on the second and third liners. Overnight, the Dow rose +104.83 points or +0.89% to close at 11,913.62. Today, the FBM KLCI is likely to trade within a range of 1,432 to 1,475.

This week's expected range: 1389 – 1503
Today’s expected range: 1432 – 1475

Resistance: 1459, 1467, 1475
Support: 1432, 1440, 1445

FBM KLCI - likely to further consolidate

2011-10-24T08:58:00.004+08:00

Stocks on Bursa Malaysia ended the week lower last Friday as investors stayed on the sidelines to await the outcome of European policymakers' meeting over the weekend. Losses were mostly seen in Genting, which dragged the FBM KLCI 2.35 points or 0.16% lower to close at 1,438.83, and week-on-week, the benchmark index eased 3.6 points or 0.25% from previous Friday's closing of 1,442.43. Losers led gainers by 366 to 323 while 278 counters were unchanged. Total market volume dropped to 1.253 billion units valued at RM1.095 billion from 1.309 billion units valued at RM1.155 billion on Thursday. Total weekly volume surged to 7.391 billion shares worth RM6.584 billion from 5.305 billion units valued at RM6.485 billion the previous week.

The FBM KLCI opened with an up gap of 9.54 points at 1,451.97 on last Monday and ended the day near the intra-week high at 1,645.35. Tuesday saw a strong pullback in the key index where it fell 25.41 points to close at 1,439.94 after opening 5.77 points lower at 1,459.58. Taking cue from the strong gain on Wall Street overnight, the FBM KLCI rebounded on Wednesday to close 10.31 points higher at 1,450.25. On Thursday, stocks ended on a softer note as weaker sentiment globally eased investors' confidence, resulting in selling across the board, and the benchmark index closed 9.07 points lower at 1,441.18. On Friday, the FBM KLCI was basically in a consolidation mode and traded in a narrow range for a major part of the day, it however, went on a roller-coaster ride near the end of the day where it suddenly tumbled to the low of 1,371.18, due probably to some errors in trade execution, losing 70 points at its worst, before recovering to close 2.35 points lower to end the week at 1,438.83.

On the weekly chart, the FBM KLCI formed a black hangman candlestick which indicates consolidation; however, as the long lower shadow was due to some trading error, it can be ignored. It showed that the key index was taking a breather and gone into consolidation after three consecutive weeks of up move. It hit into the 80-week moving average (MA) and pulled back. Nonetheless, it is now above the 5 and 10-week MAs. The FBM KLCI is likely to continue its consolidation this week but with an upward bias.

On the daily chart, the FBM KLCI formed a hammer candlestick with extremely long lower shadow. Taking away the long lower shadow, the price action of the key index indicated continued consolidation. Immediate support is at 1,429 while the immediate overhead resistance zone is envisaged at 1,447 to 1,450.

Weekly MACD continued to climb higher, indicating an improvement in the weekly upward momentum; nonetheless, the weekly MACD is still below the signal-line in the negative zone. Daily MACD was higher but tapering off, together with the shorter histogram, it indicated a loss in the daily upward momentum, and hence, might extend its consolidation. Weekly RSI (14) hooked down slightly to 42.6 reflecting the pullback on the weekly chart, and the weekly relative strength is still in the mildly bearish zone. The daily RSI (14) had continued to slide lower to 53.9, reflecting the consolidation and the daily relative strength is losing its strength and moved lower into the mildly bullish zone. Weekly Stochastic continued to climb higher to 41.7, indicating the current weekly up cycle is still intact. Daily Stochastic, however, fell lower to 80.1, reflecting the pullback correction in the key index for the last few days. If the daily stochastic continue to slide below the 80 level, then the down cycle may extend itself, signaling an end to the recent up cycle. Readings from the indicators showed that the FBM KLCI is taking a breather after the recent rally from the low of 1,310.

The short term trend of the FBM KLCI remained up, as it continued to stay above the short term 10, 20 and 30-day MAs. But for the immediate term, it has gone into a sideways consolidation. In order to breakout from this consolidation, the FBM KLCI will have to break above the immediate resistance posted by the 5-day MA at 1,447, and it may then re-test the recent high of 1,465. The medium and long term trend remained down. For the coming week, the FBM KLCI may continue to consolidate but with an upward bias. However, the second and third liners may continue to dominate the active counters scene.

Last Friday, the Dow rose +267.01 points or +2.31% to close at 11,808.79. This week, the FBM KLCI is likely to trade within a range of 1,389 to 1,503, and for today, it is likely to trade within a range of 1,423 to 1,459.

This week's expected range: 1389 – 1503
Today’s expected range: 1423 – 1453

Resistance: 1443, 1448, 1453
Support: 1423, 1429, 1433

Stocks to watch: FABER, KPS, JAKS, PUNCAK, SALCON

FBM KLCI - lower in tandem with regional weakness

2011-10-21T08:37:00.002+08:00

Stocks on Bursa Malaysia ended yesterday on a softer note as weaker sentiment globally eased investors' confidence, resulting in selling across the board. The FBM KLCI, which opened 5.07 points lower at 1,445.18, fell as low as 1,429.38 and closed 9.07 points or 0.63% lower at 1,441.18. Losers outnumbered gainers by 500 to 232 while 226 counters were unchanged. Total market volume dwindled to 1.309 billion shares worth RM1.155 billion from Wednesday’s close of 1.691 billion shares worth RM1.212 billion.

The FBM KLCI opened 5.07 points lower at 1,445.50 and slid to the intra-day low of 1,429.38, losing 20.87 points at its worst, but rebounded in the last hour to recover some lost ground to end at 1,441.18. Chart-wise, the FBM KLCI formed a black hammer candlestick, a bottom reversal candle pattern, which indicates sellers were initially aggressive in pushing down the key index but later buyers surfaced to bargain hunt and lifted up the index. Today, the FBM KLCI may stage a follow through rebound to move higher. However, the 5-day moving average (MA) at 1,448 may post as a resistance to the up move.

MACD has curved down slightly, and the histogram continued to turn shorter, indicating a continued loss in the upward momentum. However, as the MACD line is still above the zero-line, the broader picture is still mildly bullish, and the current weakness may just be a pullback after a rally. RSI (14) has hooked downward to 54.6 from 57.4, reflecting the correction, and the short term relative strength of the FBM KLCI is still mildly bullish. Stochastic continued to slide lower to 80.6, indicating a continuation of the down cycle or short term correction. Readings from the indicators showed that the FBM KLCI is undergoing a short term correction after the recent rally, but for the short term it is still mildly bullish.

The short term trend of the FBM KLCI remained up, even though is has closed below the 5-day MA, but is still above the 10, 20 and 30-day MAs. The key index had tested the support of the 10-day MA and rebounded off it, and it is now closing below the 5-day MA. Hence, for the immediate short term, the key index may move sideways range-bound with immediate overhead resistance at 1,448 posted by the 5-day MA and downside support at 1,432 provided by the 10-day MA. The long term outlook remained bearish for the time being until the key index is able to break above the 1,500-point level.

Overnight, the Dow rose +37.16 points or +0.32% to close at 11,541.78. Today, the FBM KLCI is likely to trade within a range of 1,415 to 1,462.

This week's expected range: 1371 – 1504
Today’s expected range: 1415 – 1462

Resistance: 1448, 1455, 1462
Support: 1415, 1422, 1431

Stocks to watch: LATEXX, SUPERMX, UOADEV

FBM KLCI - higher on technical rebound

2011-10-20T08:39:00.001+08:00

Stocks on Bursa Malaysia ended higher yesterday with the FBM KLCI closing at its intra-day high amid investors' cautious stance on the Euro-zone debt woes. Gains in most heavyweights such as Petronas Chemicals, Genting Malaysia and Tenaga Nasional contributed significantly to the rise, accounting for 8.68 points. The FBM KLCI rose by 10.31 points or 0.72% to close at 1,450.25 after opening 4.97 points higher at 1,444.91. Gainers led losers by 641 to 162, while 210 counters were unchanged. Total market volume rose to 1.69 billion shares valued at RM1.21 billion from 1.36 billion shares valued at RM1.37 billion on Tuesday.

Taking cue from the strong gain on Wall Street overnight, the FBM KLCI opened 4.97 points higher at 1,444.91 and surged to the morning session high of 1,449.90, it then pullback to the intra-day low of 1,444.42 and was moving sideways within the high low range before a last minute pushed up to close at the highest point of the day. Chart-wise, the FBM KLCI formed a small white candlestick in bullish Harami position which indicates consolidation and may possibly continue to move higher, depending on external factors. Immediate overhead resistance zone is anticipated at 1,452 to 1,465, while the immediate downside support zone is at 1,444 to 1,433.

MACD continued to move higher but is tapering off, and its histogram also turned shorter, indicating a reduction in the upward momentum. RSI (14) hooked up gently to 57.4, indicating the relative strength of the key index is still mildly bullish. Stochastic continued to slide lower to 87.8 and is below the slow stochastic line, indicating consolidation. Readings from the indicators showed that the FBM KLCI has moved into short term consolidation.

The short term trend of the FBM KLCI remained up while medium term trend is down, and the longer term outlook is still bearish, technically. Immediate 5-day moving average (MA) support is at 1,448, while the 10-day MA support is at 1,427, and the horizontal support is at 1,433. With volume remained above the 1 billion shares mark, the overall market is likely to remain active with rotational play on second and third liners while the index link counters may continue to consolidate. Overnight, the Dow fell -72.43 points or -0.63% to close at 11,504.62. Today, the FBM KLCI is likely to trade within a range of 1,440 to 1,456.

This week's expected range: 1371 – 1504
Today’s expected range: 1440 – 1456

Resistance: 1452, 1454, 1456
Support: 1440, 1442, 1446

Stocks to watch: HIBISCS, HIBISCS-WA, JCY

FBM KLCI - pullback correction

2011-10-19T08:34:00.000+08:00

Stocks on Bursa Malaysia ended lower yesterday in line with other regional bourses as investors took profits on the back of heightened Euro-zone debt crisis worries. Heavyweights such as Sime Darby and Tenaga, which contribute significant weightage to the FBM KLCI, were among the top losers. The FBM KLCI ended the day 25.41 points or 1.73% lower at 1,439.94 after opening 5.77 points lower at 1,459.58. Losers led gainers by 705 to 145 while 173 counters were unchanged. Total market volume dropped to 1.36 billion shares, valued at RM1.37 billion, from Monday's 1.78 billion shares worth RM1.75 billion.

Following the weak performance on Wall Street overnight, the FBM KLCI opened 5.77 points lower at 1,459.58 and continued to slide lower throughout the day to hit the intra-day low of 1,433.97, losing 31.38 points at its worst, before rebounding slightly near closing on bargain hunting of selected heavyweights. Chart-wise, the FBM KLCI formed a bearish long black candlestick which indicates heavy selling pressure and sellers were dominant. The key index has closed the gap formed on Monday which indicates exhaustion of the recent rally, and hence, the index might continue to correct or consolidate itself. Immediate support is at 1,433, if this support level could not hold, then the key index might revisit the 1,423 support level.

MACD continued to climb higher and has crossed the zero-line, flashing a buy signal. However, its histogram has turned shorter, indicating a reduction in the upward momentum. RSI (14) has turned down drastically to 54.9, indicating the short term relative strength has fallen back to be mildly bullish from the bullish state on Monday. Stochastic was lower at 90.7, and has crossed below the slow stochastic line, reflecting the pullback correction as forecasted. Readings from the indicators showed that the FBM KLCI is undergoing a short term pullback correction; nonetheless, as the short term undertone has turned mildly bullish, the key index might continue its upward move after the correction is over.

The short term trend of the FBM KLCI remained up, while the medium trend has again turned down, as the key index was again closing below the 50 and 60-day moving averages, and the long term outlook remained bearish technically. Immediate overhead resistance zone is at 1,448 to 1,466 while the downside support zone is at 1,433 to 1,420. With the overall volume staying above the 1 billion shares mark, the market is likely to remain mildly active with rotational play on the second and third liners. Overnight, the Dow rose +180.05 points or +1.58% to close at 11,577.05. Today, the FBM KLCI is likely to trade within a range of 1,403 to 1,486.

This week's expected range: 1371 – 1504
Today’s expected range: 1403 – 1486

Resistance: 1455, 1470, 1486
Support: 1403, 1418, 1429

FBM KLCI - turning bullish for the short term

2011-10-18T08:32:00.001+08:00

Stocks on Bursa Malaysia continued its upward trend as concerns over the Euro-zone debt crisis began to ease. Persistent buying was noted in three heavyweight counters – Sime Darby, Tenaga and Petronas Chemicals – which pushed the FBM KLCI 22.92 points or 1.59% higher to close at 1,465.35. The barometer index, which opened 9.54 points higher at 1,451.97, moved between 1,451.97 and 1,465.48 throughout the day. Gainers thumped losers by 731 to 155 while 209 counters were unchanged. Total market volume improved to 1.78 billion shares, worth RM1.752 billion, from last Friday’s 1.075 billion units valued at RM1.223 billion.

Taking cue from the strong performance of Wall Street last Friday, the FBM KLCI opened with an up gap of 9.54 points at 1,451.97, the low of the day, and climbed to the morning session high of 1,461.84 before pulling back on profit taking to move sideways. Some late buying of selected heavyweights again pushed the key index to close near the day’s high. Chart-wise, the FBM KLCI formed a bullish white Marubozu candlestick which indicates the bulls were fully in control with euphoria built on optimism that the Euro-zone debt crisis is easing. The key index has now broken the resistance posted by the 60-day moving average (MA) at 1,462 and is facing the 360-day MA resistance at 1,467. If the key index is able to break above the 360-day MA decisively, then there is a high likelihood that it will move higher to test the 1,500-point psychological resistance.

MACD continued to climb higher, and is approaching the zero-line, indicating a continued increase in the upward momentum. RSI (14) was also higher at 63.2, indicating the short term relative strength of the FBM KLCI has turned bullish. Stochastic has tapered off and was flat at 98.4, indicating the key index is very strong, but was short term overbought, and a pullback correction is impending. Readings from the indicators showed that the FBM KLCI is turning bullish for the short term and the upward momentum is building up. However, some pullback is likely to occur as the index is short term overbought.

The short term trend is up and bullish, and the medium term trend has also just turned up as the FBM KLCI has closed above the 50 and 60-day medium term MA. The long term trend, has turned sideways as all the long term moving averages are turning flat now. Nevertheless, the long term outlook is still bearish technically, as the key index remained below the long term moving averages. Immediate overhead resistance zone is at 1,467 to 1,484 while the immediate downside support zone is at 1,450 to 1,436. With the volume growing above 1.7 billion shares, the market is likely to remain active with rotational play.

Overnight, the Dow fell -247.49 points or -2.13% to close at 11,397.00. Today, the FBM KLCI is likely to trade within a range of 1,442 to 1,479.

This week's expected range: 1371 – 1504
Today’s expected range: 1442 – 1479

Resistance: 1470, 1475, 1479
Support: 1442, 1447, 1456

FBM KLCI - likely to correct before uptrend continue

2011-10-17T08:27:00.003+08:00

Stocks on Bursa Malaysia ended mixed to easier last Friday on profit-taking activities in blue-chip counters. The market's direction was underpinned by waned investor sentiment following weak Chinese trade data, and after Spain's long-term debt rating cut by Standards & Poor's, however, the undertone of the local bourse remained firm, while anticipation over talks of an impending general election saw some UMNO-related stocks recording gains. The FBM KLCI ended 2.44 points or 0.17% lower at 1,442.43 after opening 2.30 points higher at 1,447.17, week-on-week, the benchmark index gained 42.38 points, or 3%, from previous Friday’s 1,400.05. Losers led gainers by 368 to 365 while 260 counters were unchanged. Turnover declined to 1.074 billion shares valued at RM1.223 billion from 1.506 million shares worth RM1.957 billion registered on Thursday. Weekly turnover increased to 5.305 billion shares worth RM6.485 billion from 4.08 billion shares worth RM6.17 billion last week.

On the weekly chart, the FBM KLCI formed a bullish white candlestick which indicates the bulls were in control for the week, and it had risen for three consecutive weeks. The upward momentum may continue into next week, but the key index may face strong resistance at the 1,450 to 1,484 zone. The 80-week moving average at 1,461 may particularly post as a strong resistance. On the daily chart, the FBM KLCI formed a bearish black hanging-man candlestick, which is a top reversal candle pattern, after three consecutive days of strong up move; this indicates that the key index may stage a pullback towards the immediate support level at 1,420 before continuing its uptrend.

Weekly MACD hooked up for the first time after crossing below the signal-line on the 29th July 2011, indicating a turn up in the momentum. Nonetheless, it is still below the signal-line, and could be just a rebound. Daily MACD has continued to climb higher, indicating a continuation in the daily upward momentum. Weekly RSI (14) was higher at 43.1 from 34.3 the previous week, indicating an improvement in the weekly relative strength. However, it is still in the mildly bearish zone. Daily RSI (14) has hooked down gently to 57.9, reflecting the mild pullback on the key index, and is still in the mildly bullish zone. Weekly Stochastic continued to climb higher to 34.7 after crossing over the weekly slow stochastic line last week, indicating a continuation in the weekly up cycle and improvement in the weekly market strength. Daily Stochastic, however, has hooked down gently to 98.4 after hitting the deeply overbought value of 98.9 on Thursday. Readings from the indicators showed that the weekly technical has just started to turn mildly positive, while the daily is turning bullish and overbought.

The short term trend of the FBM KLCI remained up while the medium and long term trend is still down. For the coming week, the FBM KLCI is likely to undergo a pullback correction, which should be shallow given the improving market undertone, better external sentiment on hopes the Euro-zone debt crisis is easing and increasing buying momentum on lower liners and penny stocks. The short term uptrend shall continue after the correction is over. With the volume staying above the 1 billion shares mark, the market is likely to remain active with rotational play on the second and third liners. Immediate strong overhead resistance zone is at 1,450 to 1,484 while the downside support zone is at 1,420 to 1,400.

Last Friday, the Dow rose +166.36 points or +1.45% to close at 11,644.49. This week, the FBM KLCI is likely to trade within a range of 1,371 to 1,504, and for today, it is likely to trade within a range of 1,424 to 1,460.

This week's expected range: 1371 – 1504
Today’s expected range: 1424 – 1460

Resistance: 1448, 1454, 1460
Support: 1424, 1430, 1436

FBM KLCI - higher on buying support

2011-10-14T08:28:00.001+08:00

Stocks on Bursa Malaysia ended broadly higher yesterday amid rising confidence of a rescue plan to combat the Euro zone debt crisis. Strengthening investors’ confidence in European leaders who are nearing a plan to tame the debt crisis lifted world equity markets, which supported the local bourse. The FBM KLCI rose 16.37 points or 1.15% to close at 1,444.87 after opening 3.19 points higher at 1,431.69. Advancers led decliners by 677 to 174 while 233 counters were unchanged. Volume rose to 1.506 billion shares, worth RM1.957 billion, from Wednesday’s 1.079 billion shares worth RM1.296 billion.

Taking cue from the strong performance on Wall Street overnight, the FBM KLCI opened with an up gap of 3.19 points at 1,431.69 and climbed to the intra-day high of 1,445.43 at late afternoon. It was hovering between 1,438 and 1,445 for majority of the day. Chart-wise, the FBM KLCI formed a bullish white candlestick which indicates that the bulls were in control. However, intra-day chart showed that the key index faced strong resistance at 1,445-point level. With the bullish up move yesterday, the FBM KLCI is likely to move higher today to test the psychological resistance level of 1,450.

MACD was higher, indicating a continued improvement in the upward momentum. However, as it is still below the zero-line, the broader picture is still bearish, and the current uptrend may just be a bear market rally. RSI (14) was higher at 58.8, is still in the mildly bullish zone, and indicates an improvement in the short term relative strength to the positive side. Stochastic continued to climb higher to 98.9, indicating a very strong market strength and continuation of the up cycle, nonetheless, it was deep into the short term overbought zone. Readings from the indicators showed that the FBM KLCI is turning bullish for the short term, but the overbought situation on the stochastic may forewarn of an impending pullback correction.

The short term trend of the FBM KLCI is currently up, while the medium and longer term trend remained down. The key index was closing above all the short term moving averages (MA) but remained below the medium to long term MAs. Immediate overhead resistance zone is at 1,447 to 1,466 posted by the medium term 50 and 60-day MAs, while the immediate downside support zone is at 1,430 to 1,420. As the volume continued to grow above the 1 billion shares mark, the overall market is likely to remain active with second and third liners doing a catch up. Overnight, the Dow fell -40.72 points or -0.35% to close at 11,478.13. Today, the FBM KLCI is likely to trade within a range of 1,420 to 1,460.

This week's expected range: 1336 – 1452
Today’s expected range: 1420 – 1460

Resistance: 1450, 1455, 1460
Support: 1420, 1425, 1435

FBM KLCI - turning bullish for the short term

2011-10-13T08:31:00.002+08:00

Stocks on Bursa Malaysia closed on a firmer note yesterday, in tandem with the rebound in share prices on most regional markets. The local bourse received a boost after China's shares rebounded and on anticipated hopes that Slovakia would enact a Euro-zone rescue fund by the end of this week. The local equity market was buoyed by the sentiment of optimism in the region, including China's move to buy bank shares. A bullish anticipation that the general elections will be soon, also contributed to the market's performance yesterday. The benchmark FBM KLCI rose 16.85 points or 1.19% to close at 1,428.5, after opening 2.75 points better at 1,414.4. Gainers thumped losers by 558 to 177 while 272 counters were unchanged. Turnover improved to 1.08 billion shares worth RM1.30 billion from the 1.06 billion shares worth RM1.38 billion on Tuesday.

The FBM KLCI opened 2.75 points higher at 1,414.40 but experienced heavy profit-taking activity which sent the key index to the intra-day low of 1,402.08 within the first fifteen minutes. The key index rebounded strongly and gradually moved upward with intermittent mild pullback to finish the day at the highest point of the day. Chart-wise, the FBM KLCI formed a bullish white candlestick which indicates the bulls were very much in control for the day. As mentioned in yesterday’s analysis, the key index will rally higher if it breakthrough the resistance zone at 1,415 to 1,423, and it did. The strong buying momentum is likely to carry the FBM KLCI higher to test the next higher target of 1,442 and 1,450.

MACD continued to climb higher, indicating a continued increased in the upward momentum. Nonetheless, as it is still below the zero-line, the present up move may just be a bear market rally. RSI (14) was higher at 54.7, indicating the FBM KLCI had turned mildly bullish for the first time after it moved below the 50-level and turned bearish on 18/07/2011. Stochastic surged higher to 91.5, indicating very strong market strength and a continuation of the short term bullish up cycle. Readings from the indicators showed that the FBM KLCI is turning bullish for the short term, and the upward momentum may push the key index higher.

The short term trend of the FBM KLCI has turned up, while the medium and long term trend remained down. The key index is currently closing above the short term 5, 10, 20 and 30-day moving averages (MA), and is likely to move higher to test the medium term 50-day MA at 1,450 and strong resistance is anticipated at the 1,450 to 1,468 zone. With the volume going above the 1 billion shares mark, the overall market is likely to remain active. Overnight, the Dow rose +102.55 points or +0.90% to close at 11,518.85. Today, the FBM KLCI is likely to trade within a range of 1,393 to 1,455.

This week's expected range: 1336 – 1452
Today’s expected range: 1393 – 1455

Resistance: 1438, 1446, 1455
Support: 1393, 1410, 1415

Stocks to watch: SUNWAY, MUHIBAH, MBSB, MHB

FBM KLCI - higher on buying support

2011-10-12T08:34:00.001+08:00

Stocks on Bursa Malaysia staged a rebound yesterday to end firmer, after beginning the week in the red, and against a mixed global equity market. World stocks, which were on a rally yesterday, slipped into mixed trading with players cautious ahead of the European Union's bailout vote. The FBM KLCI rose 14.61 points or 1.05% to end at 1,411.65, after opening 9.95 points better at 1,406.99. Gainers thumped losers by 593 to 171 while 248 counters were unchanged. Turnover rose to 1.060 billion shares worth RM1.376 billion compared with 548 million shares worth RM632 million on Monday.

Taking cue from the strong performance on Wall Street overnight, the FBM KLCI opened with an up gap of 9.95 points at 1,406.99 and surged to the morning session high of 1,412.18, it pulled back to moved sideways for the rest of the morning. The key index climbed to the intra-day high of 1,414.74 in the afternoon session but profit-taking activity pressed it to close off high. Chart-wise, the FBM KLCI formed a bullish white candlestick which indicates the bulls were in control for the day. The key index closed just above the horizontal resistance level at 1,410, which is also the 23.6% Fibonacci retracement level measuring from the low of 801 to 1,597. It may continue the up move to test the next higher target level of 1,420. However, the 30-day moving average (MA) at 1,415 may continue to exert selling pressure.

MACD continued to move higher, indicating a continued increased in the short term upward momentum. RSI (14) was higher at 50.1, back to the neutral zone. If RSI is able to go above the 50 level, further upside in the FBM KLCI can be expected. Stochastic was higher at 84.5, indicating an improvement in the market strength, but it has also moved into the short term overbought zone, hence, some pullback is expected. Readings from the indicators showed that the FBM KLCI is gradually turning bullish for the short term; nonetheless more data is needed to confirm this.

The medium and long term trend of the FBM KLCI remained down. Nonetheless, the short term trend has turned up, as the key index is now closing above the 5, 10 and 20-day MAs, and it has also breakout from the downtrend channel. Immediate strong overhead resistance zone is at 1,415 to 1,423. If the FBM KLCI is able to breakthrough this zone, then there is a high likelihood that it may rally towards the next target at 1,450. Immediate downside support zone is at 1,406 to 1,400. Overnight, the Dow fell -16.88 points or -0.15% to close at 11,416.30. Today, the FBM KLCI is likely to trade within a range of 1,399 to 1,423.

This week's expected range: 1336 – 1452
Today’s expected range: 1399 – 1423

Resistance: 1415, 1419, 1423
Support: 1399, 1403, 1407

FBM KLCI - pullback on profit-taking

2011-10-11T08:28:00.001+08:00

Stocks on Bursa Malaysia closed lower yesterday weighed down by losses in plantation counters. Plantation companies were the biggest losers after the Malaysian Palm Oil Board released data indicating that Malaysia's September crude palm oil production rose 12.12 per cent, month-on-month, to 1.869 million tonnes and stockpile increased 12.4 per cent to 2.119 million tonnes while exports fell 8.8 per cent to 486,882 tonnes. The FBM KLCI fell 3.01 points or 0.21% to 1,397.04 after hovering between 1,392.10 and 1,399.35 throughout the day. Losers outnumbered gainers by 335 to 278 while 267 counters were unchanged. Total market volume decreased to 584.909 million shares, worth RM632.688 million, from Friday’s 964.611 million units valued at RM1.31 billion.

The FBM KLCI opened 1.43 points lower at 1,398.62 and plunged to the intra-day low of 1,392.10 within the first fifteen minutes after opening. It then rebounded to the intra-day high of 1,399.35 but continued to face selling pressure which pressed it to hover near the low throughout the day before a last minute buying on selected blue-chips which lifted it to close at 1,397.04. Chart-wise, the FBM KLCI formed a black hanging man candlestick which indicates the surfacing of selling pressure, and as the key index was trading within the previous day’s candle range, it was consolidating itself after the recent rally. The FBM KLCI might continue to consolidate until a clear breakout sign either up or down is observed.

MACD continued to climb higher, indicating a continued increased in the upward momentum. Nonetheless, the MACD is still in the bearish zone. RSI (14) hooked down slightly to 45.5 reflecting the mild pullback in the key index, and the relative strength continued to remain mildly bearish. Stochastic continued to climb higher to 74.7, indicating a continuation in the short term up cycle as well as improvement in the market strength. Readings from the indicators showed that the momentum of the FBM KLCI is gradually picking up even though the overall picture is still a bit bearish.

The medium and long term trend of the FBM KLCI remained down, while the short term trend is up despite the mild pullback yesterday. As the FBM KLCI is currently above the 5 and 10-day moving averages (MA), but is below the 20 and 30-day MAs, the key index is likely to move range bound with an upward bias in the short term. Immediate overhead resistance zone is at 1,403 to 1,423 while the immediate downside support zone is at 1,391 to 1,380. Overnight, the Dow rose +330.06 points or +2.97% to close at 11,433.18. Today, the FBM KLCI is likely to trade within a range of 1,385 to 1,407.

This week's expected range: 1336 – 1452
Today’s expected range: 1385 – 1407

Resistance: 1400, 1403, 1407
Support: 1385, 1388, 1392

Stocks to watch: JCY, UNISEM, TGOFFS

FBM KLCI - likely to continue its short term uptrend

2011-10-10T08:37:00.002+08:00

Stocks on Bursa Malaysia ended higher last Friday as the market reacted positively to the government's 2012 Budget. The market was bolstered by the government's move to liberalize 17 services sub-sectors in phases next year, which include private hospital services, medical and dental specialist services, engineering, accounting and taxation, and legal services. The Prime Minister also forecast Malaysia's GDP is to grow 5 to 6 per cent next year. Overall market sentiment was positive. The FBM KLCI rose 6.36 points to 1,400.05, and week-on-week, it gained 12.19 points or 0.93% from 1,387.13 the previous Friday. Gainers beat losers by 373 to 341 while 271 counters were unchanged. Turnover declined to 964.61 million shares worth RM1.31 billion from 994.17 million shares valued at RM1.39 billion on Thursday. Weekly volume decreased to 4.08 billion shares valued at RM6.17 billion from previous week’s 4.82 billion shares worth RM8.11 billion.

Following the slump on Wall Street the previous Friday, the FBM KLCI kicked off the month of October with a down gap of 5.32 points at 1,381.81 and slid to the intra-week low of 1,353.45 before recovering to close 19.61 points lower at 1,367.52 on Monday. The benchmark index continued with its downtrend on Tuesday to close another 6.14 points lower at 1,361.38 after hitting the intra-day low of 1,356.77. On Wednesday, the FBM KLCI took the cue from the overnight gain on Wall Street to close 14.29 points higher at 1,375.67. The rebound continued into Thursday, ahead of the 2012 Budget announcement on Friday, which saw the FBM KLCI ended 18.02 points steadier at 1,393.69. The up move continued into Friday with the benchmark index hitting the intra-week high of 1,402.58 before closing off high at 1,400.05, making another 6.36 points gain.

On the weekly chart, the FBM KLCI formed a white hangman-like candlestick which indicates the bears were initially strong in pushing the key index down, but later the bulls lifted the index to close near the high. The key index may continue its upward momentum to move higher this week, but it is likely to meet with strong resistance at the 1,410 to 1,423 zone. On the daily chart, the FBM KLCI formed a white hanging-man candlestick, which is a top reversal candles pattern, and it indicates heavy profit-taking activity after rising strongly for two consecutive days, but the bulls managed to give support to the key index to close at the critical psychological resistance level of 1,400-point. Judging from the candlestick formed, the upward momentum is reducing, and the FBM KLCI may goes into consolidation.

Weekly MACD continued to slide lower, but the histogram was turning shorter upward, indicating a reduction in the weekly bearish momentum. Daily MACD, on the other hand, continued to move higher after making a golden-cross, indicating a continued increase in the daily upward momentum. However, as both weekly and daily MACD are still below the zero-line, the present upswing is considered just a technical rally in a bear market. Weekly RSI (14) continued to move higher to 34.4 from 31.4 the previous week, indicating an improvement in the weekly relative strength even though it is still in the bearish zone. Daily RSI (14) also continued to climb higher to 46.3, and has moved from the bearish zone into the mildly bearish zone after more than two months of being bearish to very bearish. Weekly Stochastic was higher at 21.4, and has crossed above the slow stochastic line, indicating a possible beginning of an up cycle. Daily Stochastic continued to climb higher to 64.6, indicating the short term market strength is beginning to turn strong. Readings from the indicators showed that the FBM KLCI is gradually moving out of its bearish state to turn strong for the short term, and this may offer some short term trading opportunity.

The medium to long term trend of the FBM KLCI is still down. However, the short term trend has turned upward as the key index is now closing above the 5, 10 and 20-day moving average (MA). If it is able to move above the 30-day MA at 1,420-point, then the short term trend is confirmed to be up, and the benchmark index may rally towards the psychological resistance level of 1,450. Meanwhile, as the Budget 2012 was announced without much goodies to the business sectors, the pre-budget rally may fizzles off; however, with debt crisis in the West showing signs of stabilising, the market may move range-bound with an upward bias this week. Immediate overhead resistance zone is at 1,410 to 1,423, while the downside support zone is at 1,391 to 1,380.

Last Friday, the Dow fell -20.21 points or -0.18% to close at 11,103.12. This week, the FBM KLCI is likely to trade within a range of 1,336 to 1,452, and for today, it is likely to trade within a range of 1,382 to 1,414.

This week's expected range: 1336 – 1452
Today’s expected range: 1382 – 1414

Resistance: 1405, 1410, 1414
Support: 1382, 1386, 1393

FBM KLCI - uptrend continued

2011-10-07T08:25:00.001+08:00

Stocks on Bursa Malaysia ended higher yesterday, extending gains from the day before, ahead of today's 2012 Budget announcement. Overall market sentiment remained positive, and almost all sectors regained strength after the recent losses with consumer and finance stocks leading the market recovery. The FBM KLCI ended 18.02 points steadier at 1,393.69 after opening 5.5 points higher at 1,381.17. Market breadth was positive with gainers led losers by 535 to 186 while 257 counters were unchanged. Turnover rose to 994.17 million shares, valued at RM1.39 billion, from Wednesday's 697.59 million shares worth RM1.09 billion.

The FBM KLCI opened with an up gap of 5.5 points at 1,381.17 and climb to the intra-day high of 1,395.28 within the first hour of trading. The key index pulled back on mild profit-taking activity and was hovering between 1,387.07 and 1,395.28 for the rest of the day. Chart-wise, the FBM KLCI formed a bullish white candlestick which indicates the bulls were in control for the day, and the market continues the reversal of the previous day. It is likely that the upward momentum will be carried through today to move the key index higher. Immediate strong overhead resistance levels are at 1,400, 1,410 and 1,420.

MACD continued to climb higher after making a golden-cross yesterday, indicating an increase in the upward momentum. RSI (14) was higher at 44.4, indicating the key index’s relative strength was turning from bearish to mildly bearish. Stochastic has turned upward to 49.6, indicating a resumption of the short term up cycle. Readings from the indicators showed that the FBM KLCI is gradually turning positive, and the momentum is also picking up, which is likely to carry the key index higher.

The main trend of the FBM KLCI remained down. However, with the key index closing above the 10-day moving average (MA) decisively yesterday, the short term trend has turned up. Nonetheless, as the FBM KLCI is still staying below the 20 and 30-day MAs which are currently at 1,402 and 1,422, the current up swing may just be part of a technical rebound in a bear market. If only the FBM KLCI is able to move above the 30-day MA at 1,422, the short term trend would be considered reversed. Immediate overhead resistance zone is at 1,400 to 1,420, while the downside support zone is at 1,381 to 1,365.

Overnight, the Dow rose +183.38 points or +1.68% to close at 11,123.33. Today, the FBM KLCI is likely to trade within a range of 1,370 to 1,410.

This week's expected range: 1274 – 1460
Today’s expected range: 1370 – 1410

Resistance: 1399, 1405, 1410
Support: 1370, 1375, 1384

FBM KLCI - reversed up

2011-10-06T08:35:00.003+08:00

Stocks on Bursa Malaysia closed broadly higher yesterday after two days of selling, underpinned by strong buying in selected blue chips, as overnight gains on the US equity indices and regional markets improved appetite for higher risk. The FBM KLCI rose 14.29 points or 1.05% to 1,375.67 after opening 3.41 points higher at 1,364.79. Overall market sentiment was positive with gainers leading losers by 435 to 247 while 263 counters were unchanged. Turnover was lower at 697 million shares worth RM1.089 billion compared with 795 million shares worth RM1.237 billion on Tuesday.

Taking cue from the overnight gains on Wall Street, the FBM KLCI opened 3.41 points higher at 1,364.79 and surged to the morning session high of 1,374.64 within the first fifteen minutes, and profit-taking activity kept the index in a sideways range. The afternoon session saw the key index climbed to the intra-day high of 1,379.12 but eased back to close off high at 1,375.67. Chart-wise, the FBM KLCI formed a bullish white candlestick which indicates the bulls were in control for the day. The bullish up move indicates a reversal after two days of consecutive declines, and is likely to continue to move higher today. Immediate overhead resistance zone is at 1,380 to 1,400.

MACD has turned upward and made a golden cross above the signal-line, issuing a buy signal. Nonetheless, as the MACD is still below the zero-line, the current upturn may well be just part of a technical rebound within a major downtrend. RSI (14) hooked upward to 38.6, indicating an improvement in the short term relative strength even though it is still in the bearish zone. Stochastic was at 40.9, and has turned flat, indicating a pause in the downward move. Readings from the indicators showed signs of the FBM KLCI turning positive.

The main trend of the FBM KLCI remained down. However, the price action of the key index yesterday showed sign of reversal, as it was closing above the short term 10-day moving average (MA). With follow through buying, the FBM KLCI is likely to move higher to test the 20-day MA which is currently at 1,405. Nonetheless, in order to reverse the downtrend, the key index must at least close above the 1,420-point level. Overnight, the Dow rose +131.24 points or +1.21% to close at 10,939.95. Today, the FBM KLCI is likely to trade within a range of 1,352 to 1,394.

This week's expected range: 1274 – 1460
Today’s expected range: 1352 – 1394

Resistance: 1382, 1388, 1394
Support: 1352, 1358, 1367

Stocks to watch: GAMUDA, SUNWAY, UOADEV

FBM KLCI - lower on continued selling pressure

2011-10-05T08:26:00.001+08:00

Stocks on Bursa Malaysia finished lower yesterday as the market failed to sustain its upward momentum due to continuous selling pressure. Many investors were nibbling on cheap stocks when the benchmark index was hovering around 1,372.63 mid-afternoon but interest tapered off thereafter as most indices slipped into the negative territory in line with the trend in regional markets. The FBM KLCI finished 6.14 points or 0.4% lower at 1,361.38, after opening 5.36 points lower at 1,362.16. Decliners led advancers 368 to 298 while 271 counters were unchanged. Turnover rose to 795.03 million shares, valued at RM1.24 billion, from 631.32 million shares, worth RM1.14 billion, transacted on Monday.

Taking cue from the weak performance on Wall Street overnight, the FBM KLCI opened with a down gap of 5.36 points at 1,362.16 and slipped to the intra-day low of 1,356.77 within the first five minutes. The key index then recovered its lost ground gradually and touched the intra-day high of 1,375.02 at mid-afternoon before selling pressure brought it down to close at 1,361.38. Chart-wise, the FBM KLCI formed a Doji candlestick with a longer upper shadow and short lower shadow. The appearance of Doji indicates indecision of market direction. The short lower shadow indicates selling pressure was not very strong, while the longer upper shadow showed that there was some buying interest coming in to bargain hunt. Hence, the key index might take a pause here, and may move range-bound with immediate overhead resistance zone at 1,375 to 1,381, and the downside support zone at 1,356 to 1,350.

MACD was flat, indicating a pause in the momentum. Nonetheless, as the MACD is still below the zero-line and its signal-line, the overall picture is still bearish. RSI (14) was slightly lower at 33.5, remained in the bearish state. Stochastic was at 41.5, and has hooked downward, indicating the end of the recent short term up cycle. Readings from the indicators showed that the FBM KLCI is still in a bearish state, and the consolidation may prolong.

The main trend of the FBM KLCI remained down, and the key index is at a critical level now, as a break below the 1,350-point psychological support level will likely see the key index sliding lower to re-test the critical support zone of 1,310 to 1,300. In order to reverse the current downtrend, the FBM KLCI will have to at least move above the 1,420-point level. Overnight, the Dow rebounded +153.41 points or +1.44% to close at 10,808.71. Today, the FBM KLCI is likely to trade within a range of 1,335 to 1,393.

This week's expected range: 1274 – 1460
Today’s expected range: 1335 – 1393

Resistance: 1372, 1382, 1393
Support: 1335, 1346, 1353

FBM KLCI - downtrend continue

2011-10-04T08:23:00.001+08:00

Stocks on Bursa Malaysia closed lower on selling pressure yesterday, following Wall Street's slump last week. The bourse was dragged down by weak regional market sentiment, as the market is concerned about the global economy as it may be heading for another recession as Europe's debt crisis worsens and US economic growth slows. The FBM KLCI fell 19.61 points, or 1.41%, to close at 1,367.52 after opening 5.32 points lower at 1,381.81. Decliners thumped advancers by 560 to 167 while 201 counters were unchanged. Turnover declined to 631.32 million shares worth RM1.14 billion from 1.1 billion shares worth RM1.85 billion last Friday.

The FBM KLCI opened with a gap down of 5.32 points at 1,381.81 and slid lower to hit the intra-day low of 1,353.45, losing 33.68 points at its worst, before rebounding in the last hour on bargain hunting activity to close off low at 1,367.52. Chart-wise, the FBM KLCI formed a bearish black candlestick which closed at the mid-point of yesterday’s trading range. This showed the bears were initially strong in pushing down the key index, but later the bulls came in to bargain hunt, nonetheless the buying momentum was not strong enough to push the index higher. The price action yesterday confirmed the reversal signal generated by the black spinning-top candlestick formed last Friday, and the FBM KLCI is likely to continue its downtrend today.

MACD was almost flat, indicating a pause in the upward momentum generated by the technical rebound. RSI (14) has turned downward to 34.7, reflecting the weakness, and the key index continued to remain in the bearish zone. Stochastic was marginally higher at 44.9, but is tapering off, indicating a possible end of the technical rebound. Readings from the indicators showed that the FBM KLCI continued to remain bearish and weak, and the correction process may prolong.

The main trend of the FBM KLCI remained down and bearish. With the reversal yesterday, it spelled the end of the short term uptrend, and the key index is likely to further correct itself. Immediate support zone is envisaged at 1,353 to 1,331, with the next critical support level at 1,310. If the 1,310-point support level could not hold, then the key index is likely to move lower to test the 38.2% Fibonacci retracement (FR) level at 1,293, based on the measurement from the 801.27 low on 28/10/2008 to the 1,597.08 high on 11/7/2011, and the possibility of the FBM KLCI correcting further downward to the 50% FR level of 1200-point cannot be ruled out.

Overnight, the Dow fell -258.08 points or -2.36% to close at 10,655.30. Today, the FBM KLCI is likely to trade within a range of 1,324 to 1,410.

This week's expected range: 1274 – 1460
Today’s expected range: 1324 – 1410

Resistance: 1382, 1396, 1410
Support: 1324, 1339, 1353

FBM KLCI - a choppy week ahead

2011-10-03T09:01:00.002+08:00

Stocks on Bursa Malaysia closed mostly higher in choppy trading last Friday. However, sentiment remained cautious in view of the poor performance in regional markets which were affected by the weak global economic outlook. This is in spite of positive US economic news and support given by the German authorities to increase Eurozone rescue funds. The FBM KLCI fell 0.33 point to close at 1,387.13 after opening 3.12 points higher at 1,390.58, and week-on-week, it gained 21.19 points or 1.55% from 1,365.94 registered on previous Friday. Gainers beat losers by 389 to 377, while 271 counters were unchanged. Turnover increased to 1.099 billion shares worth RM1.848 billion from 920.957 million shares worth RM1.366 billion on Thursday. Weekly volume increased to 4.825 billion shares, worth RM8.11 billion, from previous week’s 4.039 billion shares, worth RM7.481 billion.

The FBM KLCI opened with a down gap of 8.20 points at 1,357.74 on last Monday and slid lower to hit the intra-week low of 1,310.53, losing as much as 55.41 points at its worst before bargain hunting activity lifted it to close off low with a loss of 34.14 points at 1,331.80. The FBM KLCI rebounded on Tuesday prompted by renewed hopes that European officials would take bold steps to resolve the debt crisis, and the index recoup 32.40 points to close at 1,364.20. The key index continued to climb on Wednesday to close 7.35 points higher at 1,371.55 amid cautious sentiment. On Thursday, the benchmark index extended its gains to close 15.91 points higher at 1,387.46, moving in tandem with the rebound on other Asian equity markets, driven by hope that German authorities would approve an increase in Euro zone rescue funds. Profit-taking kept gains in check on Friday as the FBM KLCI retraced from an intra-week high of 1,403.01 to close mixed ahead of the weekend.

On the weekly chart, the FBM KLCI formed a piercing-line candlestick which is a bottom reversal candle pattern. However, as the present week candlestick could not close above the mid-point of the previous week’s candle at 1,396.14, the strength of the reversal is on the weak side. On the daily chart, the key index formed a black spinning-top candlestick with long upper and lower shadow, indicating a very volatile trading day on Friday. The appearance of a spinning-top candlestick after three consecutive days of up move indicates the market was taking a pause, and may turn southward on continue profit-taking correction. Signals from both the weekly and daily candlesticks indicate that the FBM KLCI might move range-bound this week. Immediate overhead resistance zone is envisaged at 1,400 to 1,420, while the downside support zone is at 1,350 to 1,310.

Weekly MACD continued to slide lower, indicating continued loss in the weekly momentum. On the other hand, daily MACD continued to move higher, indicating an improvement in the daily upward momentum. However, as the daily MACD is still below the zero-line as well as the signal-line, the present up move is considered a technical rebound. Weekly RSI (14) has hooked up to 31.4 from 26.3 the previous week, reflecting the rebound, and the weekly relative strength is still bearish. Daily RSI (14) was almost flat at 38.61, reflecting the mild pullback in the key index, and the daily relative strength remained in the bearish zone, but has made great improvement from the deeply oversold (extremely bearish) value of 17.9 registered on September 26th. Weekly Stochastic has hooked up slightly to 13.1 from 10.3 the previous week, indicating the weekly market strength is still very weak and the weekly down cycle is still intact. Daily Stochastic, however, had continued to climb higher to 43.4, indicating the daily up cycle is in continuation. Readings from the weekly and daily indicators showed that the FBM KLCI is currently undergoing a rebound in the daily scenario, while in the weekly scenario, the key index is still very weak, and the bearish down cycle is far from over.

The main trend of the FBM KLCI remained down. However, the very short term trend has turned upward as the key index had closed above the 10-day moving average (MA) for the first time in three weeks. Nonetheless, as the key index is still below the 20 and 30-day MA, the present up swing may encounter resistance from the 20-day MA presently at 1,420. In order to reverse its short term down trend, the FBM KLCI will have to close above the 30-day MA currently located at 1,438. For the coming week, the FBM KLCI is likely to be range-bound in choppy trade, as external factors continue to influence its performance. At the mean time, the up coming budget to be tabled by PM Najib this coming Friday, 7th October may help to keep the index afloat.

Last Friday, the Dow fell -240.60 points or -2.16% to close at 10,913.38. This week, the FBM KLCI is likely to trade within a range of 1,274 to 1,460, and for today, it is likely to trade within a range of 1,346 to 1,431.

This week's expected range: 1274 – 1460
Today’s expected range: 1346 – 1431

Resistance: 1402, 1416, 1431
Support: 1346, 1361, 1374

FBM KLCI - short term trend turned upward

2011-09-30T08:30:00.001+08:00

Stocks on Bursa Malaysia ended broadly higher yesterday in tandem with the rebound on other Asian equity markets, driven by hope that German authorities would approve an increase in Euro zone rescue funds. The FBM KLCI closed 15.91 points or 1.16% higher at 1,387.46 after opening at 1,361.43. Gainers beat losers by 513 to 229 with 228 counters unchanged. Turnover was higher at 920.957 million shares, worth RM1.366 billion, from 850.054 million shares, worth RM1.517 billion, registered on Wednesday.

Taking cue from the weak performance of Wall Street overnight, the FBM KLCI opened with a down gap of 10.12 points at 1,361.43 and slid to the intra-day low of 1,357.95 within the first ten minutes. The key index then rebounded and moved upward gradually to touch the intra-day high of 1,388.55 before settling at 1,387.46. Chart-wise, the FBM KLCI formed a bullish white candlestick which indicates buyers were in control for the day. The key index had managed to breakthrough the resistance zone at 1,377 to 1,387 formed by the down gap, and is likely to continue with its upward momentum to test the next higher resistance of 1,400-point.

MACD has turned upward, indicating an increase in the upward momentum. Nonetheless, as the MACD is still below the zero-line as well as the signal-line, the present up swing may just be part of a short term technical rebound. RSI (14) continued to move higher to 38.7 from 33.4 previously, indicating a positive improvement in the short term relative strength, even though it is still in the bearish zone. Stochastic continued its upward move to 37.6, indicating a continuation in the short term up cycle. Readings from the indicators showed that the FBM KLCI is gradually turning positive, even though the broad picture is still rather bearish.

The main trend of the FBM KLCI remained down. However, the immediate short term trend of the FBM KLCI has turned upward after it cross the short term 5-day moving average (MA) a day earlier. It is now sitting right below the 10-day MA resistance of 1,388, and a cross above this resistance level will likely see the FBM KLCI moving towards the next higher target zone of 1,400 to 1,420. Immediate downside support zone is at 1,377 to 1,357.

The equity market is likely to continue its uptrend today as German lawmakers rallied behind Chancellor Angela Merkel to approve a stronger Euro zone bailout fund on Thursday. Overnight, the Dow rose +143.08 points or +1.30% to close at 11,153.98. Today, the FBM KLCI is likely to trade within a range of 1,336 to 1,420.

This week's expected range: 1263 – 1461
Today’s expected range: 1336 – 1420

Resistance: 1398, 1409, 1420
Support: 1336, 1347, 1367

FBM KLCI - higher in cautious trade

2011-09-29T08:28:00.001+08:00

Stocks on Bursa Malaysia closed marginally higher yesterday on gains in selected heavyweights. Cautious sentiments, however, still prevailed in Asian markets as investors awaited news of a concrete resolution to Europe's debt crisis, particularly in Greece. The FBM KLCI gained 7.35 points or 0.54% to close at 1,371.55. It opened 3.20 points higher at 1,367.40. Gainers outnumbered losers by 407 to 304 while 275 counters were unchanged. Turnover fell to 850.054 million shares worth RM1.517 billion from 908.813 million shares worth RM1.595 billion on Tuesday.

The FBM KLCI opened 3.20 points higher at 1,367.40 but profit-taking activity sent it to the intra-day low of 1,353.38 within the first twenty minutes. The key index then rebounded and gradually recovered the lost ground to touch the intra-day high of 1,373.64 before settling at 1,371.55. Chart-wise, the FBM KLCI formed a white hanging-man candlestick which is a top reversal pattern. The long lower shadow showed selling pressure by the short term players as the market is still very unstable. It also shows a loss in the upward momentum, and hence, the key index is likely to take a pause to consolidate its gain.

MACD has hooked up slightly and the histogram also turned shorter upward, indicating a reduction in the downward momentum, but is still too early to see any positive momentum gain yet. RSI (14) was higher at 33.4, reflecting a gain in the relative strength, but the key index is still in the bearish zone. Stochastic was higher at 26.7, indicating a continuation in the up swing. Readings from the indicators showed that the FBM KLCI is taking a pause from its recent down move, but is still too early to say whether the key index has bottom out.

The main trend of the FBM KLCI remained down. However, for the first time in two weeks, the key index has closed above the very short term 5-day moving average (MA), indicating a possible continuation in the short term up swing, but the upward move is likely to face with heavy overhead resistances. Immediate overhead resistance zone is at 1,373 to 1,400, while the immediate downside support zone is at 1,353 to 1,339. Overnight, the Dow fell -179.79 points or -1.61% to close at 11,010.90. Today, the FBM KLCI is likely to trade within a range of 1,338 to 1,394.

This week's expected range: 1263 – 1461
Today’s expected range: 1338 – 1394

Resistance: 1379, 1387, 1394
Support: 1338, 1345, 1358