Saturday, 22 October 2011

Case Study - FBMKLCI

FBM KLCI Weekly Chart
KLCI retrace when hitting resistance at 1468 and form a hannging man with a long tail. One more candle stick is needed for bearish reversal confirmation. Simple rules could be apply as below to determine the trend for next week based on Monday performance.

1. Open gap up, then close down. (Bearish)
2. Open gap down, then close up. (Bullish)

A'way, KLCI index for next week would be direct affected by EU summit's discussion output.

FBM KLCI Daily Chart

1. Trendline analysis: higher low & higher high formed (Bullish)
2. Candle Stick analysis: hammer formed on last trading day - potential bullish reversal pattern (Bullish)
3. Volume Analysis: Vol are above 20 MA for 5 out of 5 days last week which might served as good fuel to sustaine / bossting the index (Bullish)
4. Bollinger Band : Start to squeze which indicate a considaliton might happen any soon, index might cont to break out / down when BB band start to expand again later. (Neutral)
5. EMA analysis: Last trading day, price close above 10 & 50 EMA, which served as a strong support (Bullish)
6. ADX: Bearish crossover with moderate moementum (Bearish)
7. MACD: forming round top for histogram, pending 4R1G (Bearish)
8. RSI: Above 70% (Bullish)
9. Stochastic: Break down 70% (Bearis)

Conclusion: 5 Bull 1 Neutral 3 Bear, Bull win the rally

Position (Long)
Entry Price: 1474
Profit Taking: 1498
Cut Loss: 1450
RR: 1

Comment: KLCI has been volatile for the past few weeks. From both weekly & daily chart above, obviously bear & bull are still fighting and temporary bull win the fight. But could Bull continue to rally or Bear will climb up later? 
Direction for the coming weeks would be based on the outcome from EU summit on 10/23(sunday) or 10/26(Wednesday). Member are advice to be cautious in the trading until a  clear message from the chart, probaly next week.
Stay Tune and we will continue to bring the latest updates to you soon!!!!

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