Monday, September 26, 2011

20110926 1739 FKLI EOD Daily Chart Study.

FKLI closed : 1328.5, changed : -41.5 points, volume : higher.
Bollinger band reading : downside biased with possible pullback correction.
MACD Histrogram : falling, seller in control.
Support : 1325, 1310, 1300, 1285 level.
Resistance : 1330, 1337, 1345, 1350level.
Comment :
FKLI closed poorly recorded massive losses with surging up volume changed hand doing 3 points discount compare to cash market that closed severely lower. Last Friday U.S. market closed little lower and Asia markets ended mostly in negative territory while European markets currently trading higher.
Investors confident across Asia seems getting lower despite European leader working hard to set up measure to o contain the sovereign-debt crisis with Thailand, Indonesia and Malaysia witness massive selling activities on heavy weight counter while European market reacted differently in hope that policy makers in Europe to intensify efforts to contain the region’s debt crisis.
Back home, selling pressure on heavy weight and banking stocks like Maybank, KLK, Nestle, LPI, RHB Bank and Public Bank resulted cash market to closed lower.
Daily chart formed a down bar candle with long lower shadow closed outside of lower Bollinger band after market opened lower, plunged downward by more than 70 points before recovered upward due to seller profit taking activities lifted FKLI index to closed off the low of the day.
Technical reading remained suggesting a downside biased market development with possible pullback correction testing support and resistance level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistance or strength with moderate cut loss and profit target.

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