Tuesday, 12 February 2019

12 February 2019 - Flitted into marginal bullish mode.

A wider price band was seen on 11 February, with an 8.10-point range traded between 1,689.74 and 1,681.64. The index inched up 2.04-points to close at 1,688.56 on some local nibbling activities.

Supports at 1,664, 1,676 and 1,688 may be obvious for 12 February, whilst some heavy selling at the 1,690, 1,700 and 1,705 resistance areas will cap the index rises. Its CCI, DMI, Oscillator and Stochastic have turned positive, but its MACD has turned negative.

Investors may nibble on dips as the index is marginally in bullish territory and has moved above the 18 and 40 SMA since 11 February. The FKLI contracts (Feb, Mar, Jun & Sep 2019) turned below par (at a 2.06-points to a large 17.02-points discount) against the index on some very heavy selling activities. 

Due to the Dow's minor decline of 53.22-points on 11 February, 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 5 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) and to the swing low of 1,626.93 (18 December 2018).

The index remained clearly below the critical 200-day SMA situated at 1,746.90 on 11 February. The index's recent rebound inched above the 38% Fibonacci Retracement (FR) at 1,703.32 to 1,705.50 but fell off after on a key planetary turn date on 28 January 2019.

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