Overbought Stocks RSI 70+ & above, Oversold Stocks RSI -30 & below

GOOD LUCK

FKLI >>> Technical Outlook 23 May 2013

Technicals
Expect futures prices to succumb to further profit taking today ahead of the extended weekend. BSKL will be closed for Wesak Day on Friday.

Futures prices cascaded 0.64 percent, closing at 1776. Trading activities formed a black candle with long upper shadow, implying that
gains posted in the earlier trading session were not sustained. This formed a bearish harami which indicates further downward potential.

The downward price movements managed to bring RSI indicators down from a previously overbought situation.

Additionally, MACD indicators is currently neutral, a signal that bullish momentum is waning. As such, range for the day can be eyed at 1760 and 1785 respectively.

Intraday technical support & resistance for 23rd May 2013:

 1st support 1,770; 2nd support 1,765-60

 1st resistance 1,785, 2nd resistance 1,796-1800

Strategy

Trade may short with a stop on or above 1785.

GOOD LUCK 

WALL STREET : Bulls Win a Third Straight Week

Dow, S&P 500 end at five-year highs on early earnings beats

"In a relatively uneventful day, the markets caught their breath after yesterday's strong rally," summarized a Senior Equity Analyst. The Dow Jones Industrial Average (DJIA) broke higher in the afternoon after a sluggish start, closing the session at its highest point since December 2007.

"Meanwhile, the CBOE Market Volatility Index (VIX) dropped to its lowest level since June 2007," noted another analyst, "as investors continued to bid the market higher as the week drew to an end." 

On Wall Street, the Dow Jones Industrial Average gained 53.68 points, or 0.39%, to end at 13,649.70; it rose 1.2% for the week.

Leading gains on the Dow, General Electric shares climbed 3.5% after its earnings beat estimates.

TECHNICAL ANALYSIS DJIA 19 JAN 2013

The Dow close higher on Friday as it extends the rally off November's high. The high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If the Dow extends the rally off November's low, October's high crossing at 13,661 is the next upside target. Closes below the 20-day moving average crossing at 13,349 are needed to confirm that a short-term top has been posted.

First resistance is today's high crossing at 13,649.

Second resistance is October's high crossing at 13,661.

First support is the 10-day moving average crossing at 13,486.

Second support is the 20-day moving average crossing at 13,349.

HAPPY WEEKEND

ZLBT Random Stock Pick : Top 20 Overbought Stocks 03 Dec 2012

*Note: The list below is the 20 most overbought of the 1000 over Bursa Malaysia listed stocks with 14-day RSI above 80. It is generally a bearish or SELL list, especially if the readings approach 90.

Caveat: The list consists of fundamentally sound stocks, and hence are long-term

BUY or HOLD stocks.

DISCLAIMER

The information contained herein was obtained from sources believed to be reliable. However, we do not guarantee the accuracy and completeness of the report. Opinions expressed herein are subject to change without notice. This report is for information purposes only and should not be construed as an invitation, offer or solicitation to purchase or sell any futures product referred to herein. The Author may from time to time has an interest or position in the futures products or stocks mentioned. There is a risk of loss in trading stocks,futures & derivatives like products.

 

GOODLUCK

ZLBT Random Stock Pick >>> AMEDIA (0159) 15 Oct 2012

TIME FOR SOUND REBOUND

AMEDIA (0159)

Technically, it is not looking good for AMEDIA as its 20-Day Moving Average is sloping downward and its price action is below the Moving Average line. The recent downward movement in price has brought us to the technically important level of 0.35. Failure to find support at this level may accentuate the bearish move. The RSI indicator is giving a reading in the oversold region. This may indicate the price decline may be over-extended. The price and volume action at the 0.350 >>>0.335 support levels is to be monitored carefully.   WARNING There are no fundamentals involved here. AMEDIA 0159 is based solely on technicals Readers are reminded to consider the obvious before entering this stock.   GOODLUCK

DJIA >>> Technical Analysis 15 Oct 2012

A Technical Rebound Overdue

 The Dow closed slightly higher on Friday as it consolidates some of this week's decline. The low-range close sets the stage for a steady to lower opening on Monday. Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near-term. Closes below the June-July uptrend line crossing near 13,317 would confirm a trend change has taken place. Closes above the 20-day moving average crossing at 13,497 are needed to confirm that a short-term low has been posted.

 First resistance is the 20-day moving average crossing at 13,497.

Second resistance is last Friday's high crossing at 13,661.

First support is today's low crossing at 13,296.

Second support is September's low crossing near 12,977.

HAPPY TRENDING

Technicalities FBM KLCI 18 Sept 2012 >>> Tough to Crack 1,655 Record High

Strong rebound last week reverse the recent sell-off from a fresh three month low

Week-on-week, the benchmark FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) gained 18.4 points, or 1.13% to 1,642.95. Average daily traded volume and value shrank to 946.5 million shares and RM1.7 billion, compared to the 1.33 billion shares and RM1.7 billion average the previous week.

FKLI Spot month September KLCI futures contract traded on the Bursa Malaysia Derivatives Berhad climbed 23.5 points or 1.46% last week to 1,638.5, reducing the discount to the cash index to 4.45 points, compared to the 9.55-point discount the previous week, as the futures market undertone stayed cautious despite the strong rebound.

 

The daily slow stochastic indicator for the FBM KLCI has climbed into the neutral zone after

triggering a buy signal last week (Chart 1), but the weekly indicator hooked down from the

overbought region following the previous week’s sell signal. The 14-day Relative Strength Index

(RSI) recovered to a more bullish reading at 54.99, while the 14-week RSI hooked up for a reading at 61.09 as of last Friday.

The daily Moving Average Convergence Divergence (MACD) trend indicator’s trigger line has

turned upwards, signaling improving upside momentum, but the weekly MACD just flashed a sell signal (Chart 2). Meantime, the +DI and –DI lines on the 14-day Directional Movement Index (DMI) trend indicator are contracting towards each other, poised to reverse last week’s bearish signal.

 

Conclusion

Despite the strong rebound seen on blue chips late last week, the weaker than usual buying momentum and discount on the futures market implies upward momentum could stall as the index climbs higher towards the record high, as market undertone remained cautious. While short-term technical momentum has turned positive, note that weekly indicators remained bearish given the sell signals on weekly stochastics and MACD indicators.

Hence, it would be challenging for the index to overcome the 1,655.49 record peak of 3 Sept this
week (Chart 3), unless buying momentum and external sentiment improves further. In any case, higher upside hurdles upon a breakout would be at 1,660 and 1,672, the respective 1.618 and 1.764 Fibonacci Projection targets of the 1,609 high of 3 April to the 1,526 low of 18 May, with 1,691 as the one-to-one projection target. Immediate support is revised upwards to 1,636, the 50-day moving average, followed by 1,609, the 3 April peak, with better support at 1,591, which is the 50% retracement of the run-up from 1,526.6 low on 18 May to the 1,655.49 peak of 3 Sept.

HAPPY TRENDING

December Soybean Oil Chart c/w Technical Recommendations 11092012

ZLZ12 Technical Analysis Daily Chart

ZLZ12 Technical Table

 

HAPPY TRADING

KLCI And FKLI Market Outlook 24/02/09

KLCI & FKLI TODAY 240209

The Asian market closed in mix note after Dow futures rebounded on nationalization of CitiGroup Inc. lead to reducing the risk of bank failures. KLCI eased 1.88 pts or -0.21% to settle at 887.83, STI gained 37pts or +2.33%, HSI added 475 pts or +3.75% while Nikkei 225 shed 40 pts or -0.54% on financial services company SFCG filed for bankruptcy protection. Meanwhile, the FKLI gained 6 pts or +0.68% to settle at 884. The basis narrowed to 3 pts discount from 11 pts against cash. Given the weak momentum reading on RSI-14 days at 48 and unable to sustain above SMA 20 at 885, we expect the market to have further downside potential.

In addition with overnight loss in Dow Jones, sentiment would be further weakened today and lead to more sell off on shares, recent performance in US and regional market is giving more pressure on KLCI. While economists in different financial institutions in Malaysia are giving various 2009 GDP growth forecast for Malaysia to be 1-3.5%, market is fundamentally weak and hence doesn’t give much chance for upside. Investors may Short at 890 level, more downside is expected if breach the support level at 870.