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Monday, December 10, 2012

Technical Analysis : FBM KLCI 07-12-2012

Downward Momentum Easing-Off After 5 Weeks Selling Pressure.
The daily slow stochastic indicator for the KLCI climbed higher into more positive territory following last week’s mild recovery, while the weekly indicator showed lessening downward momentum. The 14-day Relative Strength Index (RSI) rose to an improved reading at 42.96 as of last Friday, while the 14-week RSI turned higher for a more positive reading of 48.20.

Immediate resistance for the index will be at 1,621, the 38.2% Fibonacci Retracement (FR) of
the uptrend from 1,526 low of 18 May to the record high of 1,679 on 29 October. The 100-day and 50-day moving averages, currently at 1,639 and 1,641, would act as stronger resistance levels. Immediate support would be at the 28 November pivot low of 1,590, while 1,585 and 1,563, the respective 61.8%FR and 76.4%FR, would act as better retracement supports.

HAPPY TRADING

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