KLCI facing strong resistance at 1077 and 1150; Immediate support threatened

Note : Immediate & longterm support & resistance charted for your perusal. Readers please bear in mind charts & trendlines are only as good as they appear. The trend need no reasons to alter the entire landscape and at times without prior warnings. Take nothing for granted. TQVM

KLCI will still be in uptrend mode until 1050 & 1042 is violated. Immediate resistance is the 1077 FR follow by the 1150 longterm target.

HAPPY TRENDING FOLKS !!!

TECHNICAL ANALYSIS >>> Composite Index 03/06/2009 / 综合指数 2009年 6月 03日

Composite Index Daily Technical Analysis 03/06/2009
On Wednesday, the KLCI ended 8.22 points lower, while closing at 1055.40 points at the T2 uptrend line. Therefore, the T2 uptrend line and the Bollinger Middle Band are still the dynamic support for the KLCI while the resistance is still at 1077 Fibonacci Retracement.

As indicated by A, the Bollinger Bands Width contracted 25%, suggesting that the KLCI is still consolidating. As long as the Bollinger Bands Width is still contracting, the KLCI is likely to move sideways with some bearish biased.

As indicated by B, total market volume declined 15.1%, with volume barely above the 40-day VMA level. This shows that the overall market is still well-participated. However, if the KLCI should continue to consolidate, a lower volume is usually normal.

For the first time since 19th of May, the Stochastic breaks below the 70% level, suggesting a beginning of a technical correction for the KLCI. Unless the Stochastic could return to above 70% level, the short term movement of the KLCI is expected to be on the weaker side.

With the T2 and Bollinger Middle Band overlapping, the dynamic support is an important for the KLCI. Nevertheless, with the Bollinger Bands Width contracting, it suggests that the KLCI is still preparing for a new movement. If the Bollinger Bands Width should re-expand with the KLCI above the Bollinger Middle Band, there is a chance for the KLCI resume its uptrend. However, if the KLCI should stay below the Bollinger Middle Band, more downside risk is expected for the KLCI.

综合指数 2009年 6月 03日

如图所示，综指下跌8.22点，惟再次精确的在T2上升趋势线获得扶持，所以综指当前的支持水平依然是T2的上升趋势线及布林中频带的动态支持水平，阻力水平则是1077点的胜图自动费氏阻力线。

如图中箭头A所示，综合指数布林频带进一步收窄25%，这表示综指继续调整巩固，通常只要布林频带继续收窄的话，综指将维持在目前的调整巩固格局，直到布林频带再度打开为止。

如图中箭头B所示，马股总成交量减少15.1%，这使到成交量跌至40天的成交量平均线（VMA），无论如何这表示市场交投还算活跃，由于综指正处于巩固格局，所以成交量接下来继续萎缩是正常的。

如图中C圈所示，随机指标（Stochastic）自5月19日以来第一次跌破70%水平，这表示综指开始出现短期技术调整，所以接下来若随机指标继续下滑，那综指短期走势将开始走软，直到随机指标重返70%水平以上为止。

总的来说，综指在T2及布林中频带重叠的支持线上获得扶持，这是综指接下来的关键支持水平，换句话说若综指跌破这两道支持线的话，综指将有进一步转弱的风险。另外由于布林频带处于收窄的状态，这表示综指正在酝酿着一个新的走势，在布林频带重新打开时，若综指依然处于布林中频带以上的话，综指将有望恢复涨势，反之若届时综指处于布林中频带以下的话，那综指将有转为跌势的风险。

A mixed bag of charts at Midday 03 June 2009

HAPPY TRADING FOLKS !!!

Key markets up, KLCI in the red midday 03 June 2009

Most key regional markets were higher at the midday break on June 3, on growing evidence the world economy was coming through the worst of the recession but at Bursa, the key KLCI was in the red, weighed down by DiGi and BAT. At 12.30pm, the KLCI was down 2.76 points to 1,060.86. Turnover was 1.05 billion shares valued at RM604.26 million. Advancers led decliners 315 to 217 while 209 stocks were unchanged.
Light crude oil was one cent lower at US$68.54 while crude palm oil futures fell RM21 to RM2,570.

Hong Kong’s Hang Seng Index rose 2.3% to 18,808.77, Singapore’s Straits Times Index added 1.3% to 2,407.11, the Nikkei 225 gained 0.6% to 9,762.8 and Shanghai Composite Index rose 0.87% to 2,747.96.

News reports said with Australia chalking up 0.4% growth in the first quarter, after a revised contraction of 0.6% in the fourth quarter, a jump in US pending home sales and steadying confidence among global consumers added to evidence the world economy, while not rebounding, has come through the worst of the slump.

DiGi fell the most but in thin trade. It lost 80c to RM21.50 with 272,000 shares done after its dividend of 53 sen went ex on June 3. The stock also cut to hold.
BAT lost 25 sen to RM43.75, Parkson 16 sen to RM4.82, Lafarge 10 sen lower to RM4.98.
Pubic Bank foreign and Bursa fell 10 sen each to RM8.70 and RM7.15. Among plantation companies, KL Kepong fell 10 sen to RM11.80 but United Plantations added 10 sen to RM12.60 and BLD Plantations six sen to RM3.28.
Compugates was the most active with 116 stocks done, easing 0.5 sen to 7.5 sen. L&G lost 4.5 sen to 24.5 sen after announcing plans to reduce the par value of the RM1 shares to 20 sen but this would not involve a one-into-five share capital reduction.
MISC and Tanjong rose 20 sen each to RM8.70 and RM13.60, timber stock Jaya Tiasa added 13 sen to RM2.30 and Lingui 10.5 sen higher to RM1.09.

Pelikan saw 11.4 million shares done, rising 17 sen to RM1.25. On May 25, a local research house downgraded the stock to underperform.
Analysts said it Pelikan was likely to underperform given the potential de-rating catalysts of weaker-than-expected revenue in 2Q09; further economic slowdown in Europe and unattractive dividend yields of around 2.7%-3.0%.

Nymex crude oil was down one cent to US$68.54 per barrel.
Crude palm oil third-month futures lost RM13 to RM2,585 per tonne.
The ringgit was quoted at 3.477 to the US dollar.

U.S. stocks edge higher after see-saw session

U.S. stocks ended slightly higher Tuesday as better housing and auto sales data offset a pullback in oil prices and some new stock issuance by U.S. banks. After spending much of the day ricocheting between gains and losses, stocks in Wall Street slightly extended gains despite a drawback in financials as the latest economic data offered investors more upside surprises.

Investors slowed their move into the market from a sprint to a walk. "The economy has to recover nicely to justify the recent run-up and I don't know whether it's got that much momentum in it," noted an analyst.

The Dow rose 19.43, or 0.2 percent, to 8,740.87. The index at times traded above 8,776.39, its finish for 2008. While it remains down moderately for the year, the Dow is up 5.3 percent in four days, its best run since early April. The Standard & Poor's 500 index rose 1.87, or 0.2 percent, to 944.74, and the Nasdaq composite index rose 8.12, or 0.4 percent, to 1,836.80. Both indexes are up for 2009.

Financial stocks mostly lost ground as several banks said they would sell shares to raise capital. Adding to their share base can dilute the value of existing shares. This week investors will be closely watching a stream of economic reports -- particularly the monthly jobs data on Friday -- for more signals on where to take the market next.

Rally’s Steam Wanes As Financials Continue To Flag

Equity prices may yet head higher in the final month of the second quarter, and investors who have expressed some doubts about the rally’s legs may yet be lured off the sidelines. But the doubters prevailed, for the most part, in Tuesday’s trading session, as a tepid move by major market averages showed little of the brio that marked Monday’s rally, when investors who sat out the 5% gain in May showed some urgency to commit capital to the market.

The S&P 500 Index finished in the black for the fourth consecutive trading session, but the gains proved to be a a shadow of sprawling advance of the three previous trading days, when the index added 50 points in its sturdiest jump in nearly two months. Instead, the index inched up 5 points, or a half-percentage point, to close at 945. Nevertheless, thanks to the recent rally, the index extended a move into new-high territory for calendar 2009.

Financial stocks kept the averages largely in check in the session, as the group continued the underperformance it has logged since topping out early last month after the government released the results of the stress tests of the financial services system.