Thursday, November 5, 2009

20091105 1842 DJIA EOD Daily Chart Study.

The Dow advanced marginally to closed at 9802.14 up 30.23 point. Market did reacted to the Fed unchanged key interest rate announcement by hitting the high at 9928.04 but the bullish sentiment didn't last long with last hour selling activities pressured the market downward to closed only slightly higher. Traded still below Bollinger band with the width expanding = the negative sentiment still persisted to stay in the market. However, MACD Histrogram turned up slightly = buyer activities are prudently done. Overall a mixture view. Side way market are likely.  

20091105 1826 FCPO EOD Daily Chart Study.

Also a resting day for FCPO that traded in a 22 points range ended the day 13 points lower to closed at 2247 with low volume forming a doji bar candle. Daily chart wise still looks healthy with all indicators reading still biased to a upward movement market. Should higher volume returning to the market then this upward momentum are likely to be sustainable.
When to buy : buy at support or break out with larger cut loss and profit target.
When to sell : sell only at breaking down of support with quick stop loss and profit target.

20091105 1807 FKLI EOD Daily Chart Study.

After taken Tongkat Ali yesterday, FKLI seems lack of stamina to sustain the upward movement by taking a rest ended today down 6 point to closed at 1255 with lower volume transacted.  Today's doji bar candle also tested below the mid Bollinger but managed to closed above it = market are consolidating after yesterday long stretch. Bollinger band width contracted mildly = market may trade side way range bound. MACD Histrogram taking a slightly higher step = buyer outnumber seller by a small percentage. Okay lah give him some rest lah, yesterday up 23.5 point you know. :)
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20091105 1304 FKLI Mid Day Hourly Chart Study.

FKLI traded side way in the morning session to closed 7.5 points lower at 1253.5 in unison with major regional Asia market. The last hourly candle still able to maintained itself above the mid Bollinger band = market still positive biased. Bollinger band width stay nearly unchanged = neutral view. However, MACD Histrogram getting lower and lower = profit taking activities took place through out the session. Immediate support level stands at the mid Bollinger band and should this level of defence failed with MACD Histrogram going further down, the next support will be 1244.5 level.

20091105 1246 FCPO Hourly Chart Study.

Crude palm oil traded -14 points lower to closed at 2246 in the first half session after soy oil futures price retreated. Most of the morning session hourly chart candles ended forming doji bar shows that not fresh catalyst lead the market direction to no where. Having said that, price still holding above the mid Bollinger band = market positive sentiment remained. Bollinger band width expanding slowly = market can possibly move higher. But MACD Histrogram stepping lower = there are long position profit taking activities took place this morning. Overall, a very mixed view market. Like Alan Greenspan said : cautiously optimistic.

20091105 0944 Global Economic News.

The Federal Reserve kept its key interest rate at a record low range of 0% to 0.25% once again and left the FOMC statement largely unchanged. The decision came widely expected. The Fed reaffirmed its plan to keep interest rates low for an "extended period" in the face of still high unemployment and low inflation but expressed growing confidence that an economic recovery is at hand. The Fed scaled back one of its asset purchase programs. The Fed now will buy a total of US$175bn of agency debt, less than the US$200bn the Fed had previously said it would do. The Fed maintained plans to buy US$1.25tr of agency mortgage-backed securities, as they gradually slow the pace of purchases and anticipates completing all the purchases by March 2010. Some key Fed statements:
  • On the economy- Household spending appears to be expanding but remains constrained by ongoing job losses, sluggish income growth, lower housing wealth, and tight credit.
  • On inflation risks- With substantial resource slack likely to continue to dampen cost pressures and with longer-term inflation expectations stable, the Fed expects that inflation will remain subdued for some time.
  • On future rate changes- The anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate for an extended period.
(Federal Reserve, CNN Money, WSJ)
The Fed’s decision and tone of the statement came as no surprise. This reaffirms our view that the Fed funds rate will remain unchanged at record low levels at the final Fed meeting for the year (Dec 15-16) and 2010.

20091105 0929 LIONCORP Daily Chart Study.

LIONCORP daily chart seems like forming a possible double bottom pattern and waiting for the 0.42 resistant line break up confirmation. All indicators on the chart also having healthy signal.