FBM KLCI Preview, Technical Outlook 11 July 2013

Stocks ended off earlier highs on Wednesday, after initial optimism from overnight Wall Street strength was overshadowed by weaker export numbers from China which confirmed the world's second largest economy is slowing more rapidly. The KLCI still closed up 2.22 points at 1,768.71, off an early high of 1,771.24 and low of 1,766.67, as losers beat gainers 441 to 308 on slower trade totaling 1.22bn shares worth RM1.7bn.

Blue chips should continue to be range bound with upside capped amid cautious trade in the near-term, given the weaker-than-expected economic data from China dampening the growth outlook in the region.

Key immediate support for the KLCI stays at the 50-day moving average, now at 1,765, while a breakdown will grease correction towards 1,738, the 38.2%FR of the 1,597 low to 1,826 peak, , with 1,723 and 1,718, the highest point prior to 13GE, acting as stronger support buffers. On the upside, immediate resistance stays at 1,791, the 138.2%FP, followed by the 1,800 psychological level.

 

 

HAPPY TRENDING

Daily Money Flow of FBMKLCI Top 30 Stocks 11062013

 

Daily Money Flow (DMF) Formulation

If previous change (A) + current change (B) > 0, then DMF = “IN”; AND if (A) + (B) < 0, then DMF = “OUT”.

Money Flow (MF) Calculation
The value of money flow is set to zero at the start of the trading day. When a trade is performed, its price is compared to the price of the previous trade (the first trade of the day is compared to the previous day's close). If the prices differ, the money associated with the trade (price times number of shares) is added to or subtracted from the money flow. Additions (inflows, buys) are done on upticks; subtractions (outflows, sells) are done on downticks.

Daily Money Flow (DMF) Interpretation

In general, money flow trends confirm price trends. As prices rise, money flows are usually positive. As prices fall, money flows are usually negative. A divergence, however, between money flow and price trend can be a signal of a future price trend change. For example, a

falling stock price with a positive money flow (IN) can indicate a future rally in the price of the stock. Conversely, a rising stock price with a negative money flow (OUT) implies potential

correction in the stock price.

GOOD LUCK

 

Daily Money Flow of the Construction Sector x 30 Stocks 05 June 2013

Daily Money Flow (DMF) Formulation

If previous change (A) + current change (B) > 0, then DMF = “IN”; AND if (A) + (B) < 0, then DMF = “OUT”.

Money Flow (MF) Calculation

The value of money flow is set to zero at the start of the trading day. When a trade is performed, its price is compared to the price of the previous trade (the first trade of the day is compared to the previous day's close). If the prices differ, the money associated with the trade (price times number of shares) is added to or subtracted from the money flow. Additions (inflows, buys) are done on upticks; subtractions (outflows, sells) are done on downticks.

Daily Money Flow (DMF) Interpretation

In general, money flow trends confirm price trends. As prices rise, money flows are usually positive. As prices fall, money flows are usually negative. A divergence, however, between money flow and price trend can be a signal of a future price trend change. For example, a falling stock price with a positive money flow (IN) can indicate a future rally in the price of the stock. Conversely, a rising stock price with a negative money flow (OUT) implies potential correction in the stock price.

GOOD LUCK