FBMKLCI 05/10/2009 - 09/10/2009

FBMKLCI set for a October rally or a October market correction??

*Looks like the worst case scenario has not yet to happen. Due to the U.S and ShangHai Stock Markets rally this week with news, world markets are following the market leaders. But is this enough? Or we are still in the question on whether the month of October is a month of Market Correction or Market Rally?

*The world stock markets now are definitely in a stage of overbought due to the rally since March 2009. It is reasonable that at anytime in the near future the Stock Markets will be in a Big Market Correction. But in a BULL MARKET, anything can happen! The markets can even keep rallying for months though they are overbought!!

*In Malaysia, the 2010 Budget Malaysia is around the corner. Bank Negara will be increasing the interest rates. Malaysia Ringgit is hitting new high. Are all of these news strong enough to boost FBMKLCI?? If so then how long can this bull rally last?? Currently I am predicting that if this bull rally were to happen, I believe this bull will not be a strong bull as what we've seen in March 2009.

*I am looking forward for a BIG market correction to happen as it will be healthier for the markets. But at the mean time as the world stock markets may go for another rally. Perhaps the last rally of the year?? Therefore our market leaders are the one who will lead us! So if this rally were to happen, it is time to SELL to profit take and stay at the sidelines. In FBMKLCI, only selective counters are advised to catch (Blue-Chips counters preferably).

FBMKLCI Daily Chart(EMA10,20,50days)

*This week FBMKLCI break new high at 1233points! Is this another rally for FBMKLCI??

*Technically we can see that since March 2009, the golden crossing of EMA10,20,50days have became an important supports and also a trend lines for FBMKLCI.

*Violating the Exponential Moving Average of EMA50days will be bad for FBMKLCI. Therefore in order for FBMKLCI to stay strong in this rally, EMA10,20days must not be violated. If so then EMA50days will be the strongest Support for FBMKLCI in the Short Term.

*MACD has formed a round bottom and just golden crossed. Another Rally?? (Volume is still the main focus in FBMKLCI)

*Momentum is also positive.

FBMKLCI Weekly Chart(EMA10,20days)

*FBMKLCI Weekly Chart is showing an uptrend in the market.

*Putting EMA10days and EMA20days in Weekly chart we can actually see how strong is our FBMKLCI since March 2009. This 2 EMAs serves as an important supports for FBMKLCI in the weekly chart.

*FBMKLCI heading towards 1250points resistant?? or is able to touch 1300points resistant??

*However the MACD in weekly chart is kinda at risk as FBMKLCI MACD may deathly cross(heading into a big market correction).

*Momentum in weekly chart is still deathly cross, but may eventually golden cross.

FBMKLCI Daily Chart(EMA50days)

*This chart is just to show if FBMKLCI were to drop, how far can it drop to which is at EMA50days support.

FBMKLCI Weekly Chart(EMA50days)

*This is the worst case scenario for FBMKLCI if a BIG market correction were to happen.

*MACD may go for a Deathly Cross

*Stochastic indicator is showing market overbought in the weekly chart.

KLSE HOTTEST SECTOR! THE FINANCE SECTOR!

*The crisis is over! But which sector to focus on? Whenever a stock market is recovering, the finance(banks) sector will always be the first to move!

CIMB DAILY CHART

*CIMB flew from $5.30 to $12.35. Can it go higher??

MAYBANK DAILY CHART

*Using EMA10,20,50days golden cross to catch MAYBANK entry point. Can MAYBANK go higher??

PBBANK DAILY CHART

*Using EMA10,20,50days golden cross to catch PBBANK entry point. Can it reach $11.10??

BURSA DAILY CHART

*Using EMA 10,20,50days golden cross to catch BURSA entry point.

RHBCAP DAILY CHART

*Using EMA10,20,50days golden cross to catch RHBCAP entry point.

EONCAP DAILY CHART

*Using EMA10,20,50days golden cross to catch EONCAP entry point.

AFFIN DAILY CHART

*Using EMA10,20,50days golden cross to catch AFFIN entry point.

AMMB DAILY CHART

Using EMA10,20,50days golden cross to catch AMMB entry point.

HLBANK DAILY CHART

*Using EMA10,20,50days golden cross to catch HLBANK entry point.

KURASIA DAILY CHART