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Categories
| The Right Timing:Overhead resistance at 995-1,030 |
| Business & Market 2009 | |||
| Written by The Edge Malaysia | |||
| Monday, 04 May 2009 00:00 | |||
 KLSE COMPOSITE INDEX (April 30, 2009) Technical readings Elliott Wave Daily chart: By using a short-term Elliott Wave count, the KLCI continues to unfold the various degrees of the impulsive A-B-C waves of its major corrective wave (B). The KLCI closed at 990.74 points last Friday. Weekly chart: The KLCI’s weekly wave counts were in line with that of its daily wave counts. Elliott Oscillator Both the KLCI’s Elliott Trigger and its Elliott Oscillator continued to stay above their respective zero regions. Other Indicators Its daily and weekly stochastics stayed in their respective overbought levels. Its monthly stochastics stayed in its oversold levels. Moving Average Convergence/Divergence (MACD) The KLCI’s daily and weekly fast MACDs continued to stay above their respective slow MACDs. Its monthly fast MACD continued to stay below its monthly slow MACD. Expert Trend Index The readings are “bullish”, “bullish” and “neutral” for short, medium and long term, respectively. Profit Taking Index (PTI) Using the original Elliott wave count, PTI displays high readings of 99 and 80 on its daily and monthly charts respectively. Displaced Moving Averages (DMA) The KLCI continued to stay below its monthly DMA level of 1,205. It has since stayed above its daily and weekly DMA levels of 940 and 882 respectively. Divergence There were positive divergences on its daily MACD, Stochastics and Relative Strength Index to KLCI’s daily chart. Make Or Break (MOB) The revised weekly MOB resistance is further revised lower to its overhead resistance of 1,100 to 1,200. The KLCI hit its all-time historical high of 1,524.69 on Jan 14, 2008. Support The KLCI’s immediate downside support is now revised to 950-960 levels. Resistance Its immediate overhead resistance is now revised to the 1,000–1,025 levels. FTSE BURSA MALAYSIA SECOND BOARD INDEX  Technical readings Elliott Wave Daily chart: The FBM2BRD closed at 4,305.73 points last Friday. Weekly chart: The market is seen to unfold a technical rebound in the medium term. No significant sign of a REVERSAL from the downside. Monthly chart: Likewise, it has not completed the downside cycle in the long term yet. It is unfolding a technical corrective WAVE 4. Elliott Oscillator The FBM2BRD’s Elliott Trigger and its Elliott Oscillator continued to stay above their respective zero regions. Other Indicators Its daily and weekly stochastics stayed in their respective oversold levels while its monthly stochastics stayed in its oversold level. MACD The FBM2BRD’s daily and weekly fast MACDs stayed above their respective slow MACDs. Its monthly fast MACD stayed below its monthly slow MACD. Expert Trend Index The readings are “bullish”, “bullish” and “neutral” for short, medium and long term, respectively. PTI Moderate readings are seen on the daily, weekly and monthly charts, suggesting that the market is unlikely to re-test the low of 78 for the long-term support. DMA The FBM2BRD stayed below its monthly DMA levels of 4,765. It had since stayed above its daily and weekly DMA levels of 4,015 and 4,055 respe3ctively. Divergence There were no negative divergence on its daily stochastics and Relative Strength Index to the FBM2BRD on its daily chart. MOB The FBM2BRD’s MOB support is now revised to the 3,900-4,100 level. FTSE BURSA MALAYSIA MESDAQ INDEX  Technical readings Elliott Wave Daily chart: The FBM-MDQ’s recent impulsive wave was terminated in tandem with that of the KLCI. It closed at 3,488.07 points last Friday. Weekly chart: The FBM-MDQ has yet to complete the retracement of its corrective A-B-C waves of its major corrective wave (B). Monthly chart: Its wave retracement had completed the first leg of its intermediate-term correction. It is currently unfolding the second leg of its wave correction. Elliott Oscillator The FBM-MDQ’s Elliott Trigger and its Elliott Oscillator continued to stay above their respective zero regions. Other Indicators The FBM-MDQ’s daily and weekly stochastics stayed in their respective overbought levels. Its monthly stochastics stayed in its oversold levels. MACD The FBM-MDQ’s daily and weekly fast MACDs stayed above their respective slow MACDs. Its monthly fast MACD stayed below its monthly slow MACD. Expert Trend Index “Bullish” and “neutral” readings continued to register for the medium and long-term perspective respectively. Its short- term reading had since turned “bullish” for the moment. PTI Using the original Elliott wave count, PTI had since rebounded to 73 on its daily chart while it dropped to 19 on its weekly chart. DMA The FBM-MDQ continued to stay above its daily and weekly DMA levels of 3,083 and 3,294 respectively. It stayed below its monthly DMA level of 4,145. Divergence There were significant negative divergences on its daily MACD and Relative Strength Index to the FBM-MDQ on its daily chart. MOB The FBM-MDQ’s MOB support is now revised to the 2,800 - 3,000 levels. It hit its intra-week low of 2,843.15 on March 12. Resistance The FBM-MDQ’s next resistance is now raised to the 7,400 level. Support Its immediate downside support is revised to the 3,200-3,400 levels. Resistance Its immediate upside resistance hovers at the 7,000 level. Market review Share prices on Bursa Malaysia moved sideways in consolidating their recent gains last week. The KLCI continued to stay above its critical support of 950 when it closed at 990.74 points last Thursday. The KLCI fell from its intra-week high of 996.60 last Monday to its intra-week low of 952.37 last Wednesday, giving an intra-week trading range of 44.23 points. Based on the trading activities as at April 30, the KLCI traced out a week-on-week loss of 1.94 points, or 0.20%, to 990.74 points. The FTSE Bursa Malaysia Mesdaq Index lost 115.45 points, or 3.20%, to 3,488.07 while the FTSE Bursa Malaysia Second Board Index added 6.46 points, or 0.15%. to 4,305.73. Market outlook The KLCI staged a v-shaped consolidation last week. It fell from its 996 level to 952 before rebounding back up to 995 last Thursday. The KLCI’s daily and weekly fast MACDs continued to stay above their respective slow MACDs. Its monthly fast MACD continued to stay below its monthly slow MACD last week. The KLCI failed in its bid to stage a technical breakout of its major psychological resistance of 1,000. Instead, it consolidated within an expanded trading range of 44.23 points, closing at 990.74 points. This week, the KLCI may stage another attempt to break through 1,000. Second and third liners continue to dominate trading activities. The KLCI’s overhead resistance remains at 995-1,030 while downside support is at 950-985. This article appeared in the Capital page, The Edge Malaysia, Issue 753, May 4-10, 2009.
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