Dow Jones 15-04-12

Dow Jones index has finally broke the ascending trend line two weeks ago. Currently the index is trading below the 50-days MA and also formed a lower low indicate a trend change is likely to happen and will be confirm when a lower high is formed. The immediate support can be found at 12600 which is the 100-days MA and 12140 (200-days MA).

US Dollar Index 15-04-12

The US Dollar index is currently moving side way and formed a symmetrical triangle pattern, watch out for the breakout and it will affect some commodities price. The breakout target price to the upside is at 83.5 and to the downside is 75.0.

Commodities - GOLD 21-03-12

According to the chart this is the 2nd times gold  price drop below the 200 MA since 2009.

Early 2012 it broke above the descending trend line and now started to pullback, expecting it to find support between 1570 - 1600.

FBM KLCI 21-03-12

Watch out for the support trend line to hold (blue line) that coincide with 20-days MA. Once it is broken the next level support can be found at 1540 and 1500.

STOCKS 15-03-12

DIGI

Digi is trading in an uptrend and today closed at 3.90 which is a previous resistance turn support area coincide with the 50-days MA. After this pullback it might attract some bargain hunter. Wait for a bullish reversal candlestick pattern and the Stochastic bullish crossover before enter. 

Support can be found at 3.70 and resistance 4.15.

AMEDIA

Trading in a downtrend. Better don't catch the falling knife, might have a dead cat bounce before going lower or sideway.

ARMADA

Trading in an uptrend and too overbought. A shooting star candlestick pattern formed yesterday indicate some profit taking activities and likely to go sideway or pullback to the middle band.

CIMB

Trading in sideway between 6.70 to 7.40 over the last couple of months and finally found a direction today with the breakout with high volume. It is likely to retest the immediate resistance at 7.80 and next level at 8.00. Support can be found at 7.40.

MUDAJYA

MACD, RSI , Stochastic divergence and overbought indicate the upward momentum is weakening. Formed a spinning top follow by a hanging man candlestick pattern indicate a pullback is likely to happen in the near term. immediate support is at 3.00 and next level at 2.79.

AEONCR

Good fundamental company and is not for trading purpose. Flying up parabolic, price at all time high. If intent to enter better wait till it to retrace back to the middle band, for profit taking look for the reversal candlestick pattern.

FBM KLCI Vs FBM Scap 15-03-12

Today KLCI closed at 1579.38 up 3.67 points. The index is still trading in an uptrend, above all moving average and  found support at 1564 three days ago. Stochastic show some bullishness sign with the bullish crossover in the over sold region and i think it is likely to challenge 1600 level probably in next week. There is a price to volume and RSI divergence indicate that the upward momentum is weakening and not sustainable. Watch out for the immediate support level at 1564 and major support at 1540 (if price goes below this level it will be ugly).

This is what happen in 2011 after the price to volume divergence and RSI divergence warning.

FBM SCAP

The performance of the small caps stock is not doing very well since mid february and showed a divergence with the KLCI index. Stock selection is very important now in current market condition.

This is what happen in april 2011  for FBM KLCI and FBM Scap.

And this is march 2012.

Be careful for your stock selection and better to avoid those 2nd and 3rd liner stocks.

Stock - JCY 06-03-12

A head & shoulder pattern were spotted on JCY chart, please beware !!! Once the neck line (red line) which is also coincide with the 50-days MA is broken it will be likely to come down to 80 sen.

FBM KLCI 15-02-12

As I promise in my previous post last week FBM KLCI 09-02-12 once I spotted the confirmation of the correction I will update my post, I got it TODAY !!!

Today our FBM KLCI closed at 1561.3 declined 4.75 points and is the fifth trading days closing above 1560 level. Yesterday the index closed with a hanging man candlestick formation which indicate a potential of reversal and confirmed by today black candlestick for this reversal.

The index continue trading in an uptrend and above all moving average. However, upward momentum is weakening due to the divergence were spotted in MACD histogram, Stochastic and RSI. MACD Histogram formed a 2nd red bar, Stochastic formed a bearish crossover and is in overbought region, RSI also indicate the index is overbought and is sloping downward. According to the candlestick pattern and all my indicator, I'm expecting a correction before the index to go higher. As such, immediate support can be found between 1530 - 1540. Immediate resistance is at 1566 and next level at 1580. If the FBM KLCI closed above 1566 then it is likely to re-test 1580 resistance.

FBM SCAP 13-02-12

Last week I mentioned at FBM SCAP 09-02-12 that a pullback is expected in the near term but still need to wait for the confirmation and I got it today !!!

Last Friday it closed with doji candlestick indicate indecisiveness in the small cap stocks toward the upside and probably profit taking activities would take place after 2 months long run rallies and today closed with a black candlestick as a confirmation with Stochastic bearish crossover, MACD histogram turn red.

This pullback would be a good buying opportunities for trader who miss the previous rally with a buy at support strategy. As such, immediate resistance is at 13440 (blue line) and support can be found at 12975 (red line) which is coincide with the 10-days MA.

FBM KLCI 09-02-12

My last post about the FBM KLCI was at last week 02-02-12 that i'm expecting the index to reach 1560 after it break above 1530 resistance and the index closed at 1565.32 today up 12.14 points.

The index continue to trading in an uptrend and above all moving average. However, the upward momentum is weakening due to divergence were spotted in RSI, MACD and Stochastic. Therefore, i will expect a correction in the near term (maybe next week) and i will update my post once i got the confirmation, stay tune. As such, the immediate resistance is at 1580 and next level at 1597. Support can be found at 1540 or the blue support trend line which is coincide with the 20-days MA.

FBM SCAP 09-02-12

Small cap stocks traded in bursa was doing very good over the last few months. It started the rally since October 2011 till mid-November then consolidated till the end of December 2011 and the latest rally was started early January 2012 till today closing, there is still no sign of reversal.

However, RSI and Stochastic is in the overbought region and Stochastic is about to form a bearish crossover indicated that the upward momentum is weakening and possible pullback is expected in the near term but still need to wait for the confirmation. Immediate resistance is at 13440 and support can be found at the 20-days MA or the support trend line (blue).

Trading idea for the small caps stock in the near term is to take profit for those who has bought some stock earlier on and for those intend to buy is better to wait for the pullback before going in.

As always, Trade with caution !!!

FBM KLCI 02-02-12

The FBM KLCI finally found a direction in the 1st trading of February as it traded sideway in January between 1500 - 1530 range. Today the index closed at 1537.09 up 15.8 points.

In my previous post FBM KLCI 18-01-12 , i'm expecting the index to move sideway until it either break above 1530 or break below 1500 to get a new direction. I got it TODAY !!!

The index continue trading above all moving average, RSI sloping upward, Bollinger Band breakout convince with high volume. Therefore, i will expect the index to test the immediate resistance which is pegged at 1560. Support can be found at 1500.

Stock - BIMB update 18-01-12

Finance Sector

BIMB today closed up 22 cents and break above 2.10 resistance with high volume. Next resistance is pegged at 2.40. Stop loss can move up to 2.02. My previous post (stock - BIMB 04-01-12).

FBM KLCI 18-01-12

My last post about the FBM KLCI is at 09-01-12 last week as i wrote "i will expect the index to retest the immediate resistance 1530". The index go as high as 1526 and retrace from there which is due to more than  half of the European countries credit rating was downgraded by S&P.

S&P Downgrades See Muted Market Response this time. Our index decline 14 points on monday and quickly recover 10.3 points yesterday.

The index is still trading above all moving average and the uptrend is still intact. MACD formed a bearish crossover, RSI is flat and today closed with a doji candlestick indicate that there is some indecisiveness in the market. Therefore, i will expect the index to go sideway according to my analysis and also because of the market will close on next monday and tuesday for celebrating Chinese New Year.

Support can be found at 1500 which is the trend line support coincide with the 20-days and 200-days MA. If it close below 1500 there will be more downside and the next support is at 1480. Resistance is pegged at 1530. If the index able to break above 1530, it will be very likely to retest 1560.

Stock - Latexx update 11-01-12

This post is to update to my previous analysis to Latexx (Stock - Latexx 03-01-12). In my last post, i written that Latexx formed a symmetrical triangle and i have consider the pattern failed. It is more like a cup & handle pattern to me now and the volume today spike up to 6.31 million. Over the last 2 months consolidation this counter is trading with a thin volume means that there is not much seller. If the price can close above 2.12, projection target for this pattern will be at RM 3.09.

Support and resistance are pegged at 1.77 and 2.12. I will trade with a breakout strategy for this counter.

Beautiful pattern......

Dow Jones 11-01-12

2011 is a very high volatility year for Dow Jones, it fluctuated for 2473 points that year due to AAA credit rating downgraded by S&P to AA+ and the sovereign debt crisis in Europe.

What can we expect in 2012 ?

In the above chart i plotted the 2011 high, low and drew a red line which is the average of the high and low. If the price able to trade above the Red Line i will consider bullish or otherwise.

In technical perspective, Dow Jones is now trading in an short term uptrend and price are trading above all moving average. Divergence were spotted in the MACD and RSI indicate that the upward momentum is weakening. Therefore, i will expect a pullback in the near term and the support and resistance is pegged at 12000(50-days & 200-days MA) and 12750.

FBM KLCI 09-01-12

The FBM KLCI ended the 1st week of 2012 down 16.60 points and this pullback is expected as i mentioned before in my previous post (FBM KLCI 03-01-12) to found support between 1490 (20-days MA) - 1502 (200-days MA).

The index kick off the 2nd week of 2012 1st trading day with a bullish white candlestick after it found support at 1502 last week. Trend indicator 20-days MA continue sloping upward and price is trading above all moving average indicated the index is still trading in an uptrend. Stochastic formed a bullish crossover and RSI is also sloping upward indicate the trend is likely to continue. Therefore, i will expect the index to retest the immediate resistance 1530, if it able to break above and refill the previous gap (1539) the next resistance will be at 1560. Immediate support can be found at 1502 (200-days MA) and the next support is pegged at 1490 which is the trend line support coincide with 20-days MA.

I have divided the FBM KLCI chart into 3 part which is 2011 high 1597, 2011 low 1310 and an average 1450 (red line). If the price is able to trading above the Red line i will consider it as bullish or otherwise.

Crude Palm Oil - 08-01-12

FCPO Outlook

 

FCPO is trading in an uptrend and also completed the Elliot Wave 1-5 together with an ABC correction for leg 1 & 2 since October 2011 till December 2011.  Is this the making of the leg 3 ??? Currently the cpo price is trading above 3200 as at last friday closing and also above the 200-days MA. Support can be found between 3100 - 3130 which is the 200-days MA and 20-days MA,  if it break below 3100 the next support will be at 3000. Immediate resistance is pegged at 3270 and the next level is 3350.

Both the RSI and MACD show sign of divergence, if the cpo price trade above 3270 need to be caution cause a pullback is expect before it can go furrther.

In the weekly chart it formed a doji candlestick indicate some indecisiveness, however there is still no sign of reversal. A higher low were spotted in the chart and I'm expecting the cpo price to re-test the immediate resistance 3270 and probably break above the resistance in the near term.

In 60min chart, the price is current trading above the ichimuko clouds and RSI is above 50.

Immediate support in the 60min chart can be found at 3176 and resistance is pegged at 3244 and next level 3270.

Trading & Tasting a Glass of Red Wine

 

No matter how is the day doing, whether is a profit day or a losses day there’s always room for a glass of red wine or a couple cups of coffee. 

Be grateful & thankful everyday then the lucrative opportunity will always come my way........

Stock - BIMB 04-01-12

Finance Sector
 

Bimb has break above the long term downtrend line 2 weeks ago and a pullback confirmation were spotted yesterday. The immediate support can be found near the downtrend line (previous resistance potential turn support) coincide with the 20-days MA at 1.90, the next support is at 1.80 near the long term trend line support. The immediate resistance is at 2.10.


Aggressive Strategy - long at 1.90 and put a stop at 1.69 with 1st profit target at 2.10 and the next target 2.40.

Conservative Strategy - long somewhere near long term trend line support (red line) 1.80 and put a stop at 1.69 with 1st profit target at 2.10 and the next target 2.40.

Caveat emptor.

Commodities - Gold 04-01-12

Gold is Trading in a Long term uptrend but short term downtrend and closed at 1604.70 per ounce.
In short term, gold is trading in a downtrend and likely to re-test the long term support trend line around 1495 - 1505. I'm expecting the support trend line to hold and long somewhere between 1495 - 1505 but if the price go below the trend line there will be more downside.

Stock - Latexx 03-01-12

Glove  Counter

Latexx is trading in consolidation since november 2011 and formed a symmetrical triangle pattern and also attracted some volume over the last few trading day. If it can break above the trend line resistance 1.97, my projection target is 2.39. Immediate support and resistance can be found at 1.77 and 2.12. If it go below 1.77 then there will be more downside.

FBM KLCI 03-01-12

The FBM KLCI started the 1st trading day of 2012 with a 17.19 points decline and closed with a black candle after the 7-days winning streak. I posted in my last post that some of my indicator indicated there will be a pullback in the near term and i got the confirmation today. Support can be found at 1490 - 1502.

Technical perspective : Longer term outlook for the FBM KLCI, i will expect the index to go beyond the previous all time high 1597 to 1607 in the second half according to my fibonacci price projection.

FBM KLCI 02-01-12

The FBM KLCI has been trading in very volatile range in 2011 between 1597 and 1310 due to external factor from U.S (long term credit rating downgraded by S&P to AA+) and concerns over the European sovereign debt crisis, the index ended 2011 with a mild 11.82 points gains for the year.

The FBM KLCI has been trading beautifully in an uptrend channel since September 2011. Support and resistance can be found at 1493 and 1537, if the index can break above 1537 there is very high probability to retest 1560. The RSI / Stochastic indicated that the index is overbought in the near term and there is still no sign of reversal yet but need to trade with caution cause there is very likely a pullback in a near term.