Chart 1: FBM-KLCI's daily chart as at Oct 14, 2009 (Source: Quickcharts)
What's interesting is the movement in the following indices- FBM-SCAP, FBM-ACE & FBM-FLG. Before going into my observation, let's see what are these indices?
1. FBM-SCAP- comprises all small cap stocks on the Main Board which are not constituents of FBM-Emas
2. FBM-ACE- comprises all stocks on the ACE Board (formerly, the MESDAQ Board)
3. FBM-FLG- comprises all stocks on the Main Board which are not constituents of FBM-Emas nor FBM-SCAP
So, all the stocks in the above indices are the smaller and usually weaker companies listed on the exchange. Over the past few days, many stocks that fall into this category are starting to inch up. As a result, FBM-FLG has now broken to the upside of its ascending triangle while FBM-ACE may soon follow. FBM-SCAP is slowly catching up.
The last time we saw a strong play in this category of stocks was in early 2007 when the volume traded in the market hit high of 3-4 billion a day. Are we heading there soon? Are the retailers punting in the market again? I think so.
Chart 2: FBM-SCAP's weekly chart as at Oct 14, 2009 (Source: Quickcharts)
Chart 3: FBM-ACE's weekly chart as at Oct 14, 2009 (Source: Quickcharts)
Chart 4: FBM-FLG's weekly chart as at Oct 14, 2009 (Source: Quickcharts)
Dear Alex,
ReplyDeleteYou should be office early. Just wanna to ask you on the prospect of CENBOND, LUXCHEM and Komark?
Dear Alex,
ReplyDeleteYou should be office early. Just wanna to ask you on the prospect of CENBOND, LUXCHEM and Komark?
Hi Solomon,
ReplyDeleteLet's forget about Luxchem which had flown away.
I like Cenbond which broke above a very strong horizontal resistance at RM0.72 yesterday. You should concentrate on this one.
Komark broke above its long-term downtrend line at RM0.25 in September. Now it is trying to surpass the horizontal line of RM0.30. It did that on Sep 23 and made a high of RM0.385 but that rally had since faded. Or, maybe not?! Track this!