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.
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