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.