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 !!!