2012 June FBMKLCI Analysis

chart (a)

The first step, I will look into candlesticks. I combine the 2 highlighted candlesticks together, it's actually showing a hammer which still look bullish in the mean time. But what the last candlestick told me it's actually is a small shooting star, so to prove either bull or bear I will look for confirmation.

Second step, I will look into MACD and Stochastic Trend. Both of them are showing uptrend. 

So from chart (a), I will make a simple conclusion. From the market sentiment it's actually quite bullish with Local Fund supporting and all the good news supporting the worldwide market.

Links of news :

Malaysian banks may yet post suprises in their earnings

Read more: Malaysian banks may yet post suprises in their earnings http://www.btimes.com.my/Current_News/BTIMES/articles/king/Article/#ixzz1xUqOEtds 

Spain aid deals calm Europe Fears

Read more: http://www.btimes.com.my/Current_News/BTIMES/articles/10wallstreet/Article/#ixzz1xSuS1mES

China revives key economic reform

Read more: http://www.btimes.com.my/Current_News/BTIMES/articles/20120610234238/Article/#ixzz1xSusEeq7

'Australia's strong economy proving doomsayers wrong'

Read more: http://www.btimes.com.my/Current_News/BTIMES/articles/20120610234614/Article/#ixzz1xSuw8TED

chart (b)

From the weekly chart, we can actually see a bear flag. Either it is breaking up or down. 

Two signals showing downtrend which is MACD and chart pattern. But stochastic still showing a uptrend. 

 

chart (c)

Actually I use Fibonacci Projection to project how high FBMKLCI could go.

Resistance : 1588.61

Support : 1554

First Resistance is actually 61.80% of Fibonacci Projections.