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.