Millionaire Trend Trader: FBM KLCI: update for Friday, 13-May-2011

Thursday, May 19, 2011

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

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

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

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

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

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

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

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

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

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

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What's happening now is that the market remains trading at very thin volumes and that can affect prices, even when just a handful of shares are traded. The decision of any fund to pull out from certain stock hits the price. - Carlos Slim

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The world is changing very fast. Big will not beat small anymore. It will be the fast beating the slow. - Rupert Murdoch

The price pattern reminds you that every movement of importance is but a repetition of similar price movements, that just as soon as you can familiarize yourself with the actions of the past, you will be able to anticipate and act correctly and profitably upon forthcoming movements. - Jesse Livermore

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Be extremely subtle, even to the point of formlessness. Be extremely mysterious, even to the point of soundlessness. Thereby you can be the director of the opponent's fate. - Sun-tzu

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Before this century is over, the Dow Jones Industrial Average will probably be over one million versus around 10,000 now. So for the long-term, the outlook is tremendously bullish if you buy stocks blindly to keep for a century. - John Templeton

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Our favourite holding period is forever. - Warren Buffet

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Stock market bubbles don't grow out of thin air. They have a solid basis in reality, but reality as distorted by a misconception. - George Soros

Most of the time common stocks are subject to irrational and excessive price fluctuations in both directions as the consequence of the ingrained tendency of most people to speculate or gamble... to give way to hope, fear and greed. - Benjamin Graham

The price pattern reminds you that every movement of importance is but a repetition of similar price movements, that just as soon as you can familiarize yourself with the actions of the past, you will be able to anticipate and act correctly and profitably upon forthcoming movements. - Jesse Livermore

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I never hesitate to tell a man that I am bullish or bearish. But I do not tell people to buy or sell any particular stock. In a bear market all stocks go down and in a bull market they go up. - Jesse Livermore

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Thursday, May 19, 2011

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

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