Update: KLCI & FKLI (CI Futures) & Theme Plays

FKLI- made a very bullish move off the mid-Bollinger Band line today. Next it has to breakout from the strong 960 resistance. A strong high volume b/out would bring it into bullish territory. All we need then is for the Daily MACD to stage a positive crossover & for the BB to rise & expand. RSI seems to have bottomed out at 38. Weekly RSI & MACD are positive. Again any fall back should be strongly supported at the mid-BB line. It will only turn bearish if it breaks below this line. The 10 & 30-day MAV is also providing support. Now if only Vol was higher.... Anyway, I called for going long yesterday & those who trade futures would have been amply rewarded with a 7 point rise. Anyone want to buy me teh tarik & roti canai? ...8))



KLCI - is still finding good support at the mid-BB line & support level of 953. A breakdown below these 2 supports will be negative. However, Futures is now at a 3 point premium to the CI & that is a positive sign that perhaps the main market will soon trend upwards. So maybe the correction is over at the 953 support level. Traders could start accumulating good stocks at this level but keep an eye on the mid-BB & 953 support & be prepared to retreat if they are broken.


Themes - There also seems to be a new theme play (of an old theme play) i.e. construction stocks. They seem to be moving up strongly this week with IJM, Road Builder, UEM World & MTD all positive. I will do a thematic review this weekend but these are starting to look good again. Traders may want to consider accumulating some of these stocks selectively. Do your analysis before picking stocks.

Another theme play that moved up Thursday is palm oil stocks. However, we need to see if it can be maintained or whether its just a technical rise which will not hold up next week. Again I will do a review on the weekend.

The most interesting is the Penny Stock Theme Play. I have been monitoring these under my "Buy when no one wants to buy" strategy & many of them are starting to show bullish signals, mainly strong weekly candlestick bullish engulfing at the bottom. This is how the last play started & now we are seeing them again. As long as prices of these stocks either stay flat or move up today (Friday) the pattern will confirm. Stocks incl here are PolyTower, Satang, SYF, Versatile, MTD Infra, Oilcorp & even the dreded grand daddy of them all IRIS. I will do an analysis over the weekend once the weekly chart is complete for the pattern.

Happy trading.... 8))