Friday, 11 January 2019

11 January 2019 - Into neutral mode again.


A narrower price band was seen on 10 January, with a 11.95-point range traded between 1,681.23 and 1,669.28. The index gained 11.05-points to close at 1,678.88 on some foreign buying activities.

Supports at 1,652, 1,669 and 1,678 may be obvious for 11 January, whilst some heavy selling at the 1,680, 1,701 and 1,712 resistance areas will cap the index rises. Its DMI, Oscillator and Stochastic have turned marginally negative, whilst its CCI and MACD are positive. 

Investors will range trade as the index is in neutral territory and has moved between the 18 and 40 SMA since 10 January. The FKLI contracts (Jan, Feb, Mar & Jun 2019) turned below par (at a 3.38-points to an 11.88-points discount) against the index on some heavy selling activities. 

Due to the Dow's major rise of 122.80-points on 10 January, the local index may see price movements between the supports and resistances mentioned above today. 

Ample bearish divergence (on the ADX, CCI, DMI, MACD, MACD Histogram, Oscillator, RSI, SMA and Volume) had emerged and this shows the FBMKLCI had peaked at 1,896.03. 

The FBMKLCI had then completed 6 key swing movements from the swing low of 1,709.51 (30 May 2018) to the swing high of 1,801.42 (7 June 2018) to the swing low of 1,657.78 (28 June 2018) to the swing high of 1,826.90 (28 August 2018) to the swing low of 1,626.93 (18 December 2018) and to the swing high of 1,701.10 (31 December 2018).

The index remained clearly below the critical 200-day SMA situated at 1,761.84 on 10 January. The index's recent rebound stalled short of 38% Fibonacci Retracement (FR) at 1,703.32.

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