"T+10 interest FREE margin trading account"

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

Saturday, December 31, 2011

Happy New Year 2012

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

Friday, December 30, 2011

FBM KLCI - closed firmly above 1,500


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

Thursday, December 29, 2011

FBM KLCI - continued climbing higher


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

Wednesday, December 28, 2011

FBM KLCI - back to 1,500-point level


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

Tuesday, December 27, 2011

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



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

Sunday, December 25, 2011

Merry Christmas & Happy New Year

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

Friday, December 23, 2011

FBM KLCI - gradually turning bullish


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

Thursday, December 22, 2011

FBM KLCI - signs of bullishness


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

Wednesday, December 21, 2011

FBM KLCI - lower on profit-taking


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

Tuesday, December 20, 2011

FBM KLCI - bucking regional trend


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

Monday, December 19, 2011

FBM KLCI - likely to further consolidate



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

Friday, December 16, 2011

FBM KLCI - formation of hammer candlestick


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

Thursday, December 15, 2011

FBM KLCI - in consolidation mode


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

Wednesday, December 14, 2011

FBM KLCI - lower in line with weak regional performance


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

Tuesday, December 13, 2011

FBM KLCI - a technical rebound


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

Monday, December 12, 2011

FBM KLCI - likely to further consolidate



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

Friday, December 9, 2011

FBM KLCI - lower in line with weak regional performance


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

Thursday, December 8, 2011

FBM KLCI - higher on technical rebound


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

Wednesday, December 7, 2011

FBM KLCI - lower on profit-taking correction


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

Tuesday, December 6, 2011

FBM KLCI - taking a breather


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

Monday, December 5, 2011

FBM KLCI - turning bullish



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

Friday, December 2, 2011

FBM KLCI - higher but encountered heavy distribution


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

Thursday, December 1, 2011

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


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

Wednesday, November 30, 2011

FBM KLCI - higher on bargain hunting


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

Tuesday, November 29, 2011

FBM KLCI - likely to extend consolidation



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

Friday, November 25, 2011

FBM KLCI - higher on a strong rebound


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

Thursday, November 24, 2011

FBM KLCI - lower amid bearish sentiment


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

Wednesday, November 23, 2011

FBM KLCI - rebounded to close marginally higher


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