IOI Corp

Palm oil stocks have been sold down for the whole of last week. This drop coincides with the drop in crude oil prices.

Looking at the chart of IOI Corp, we can see that the trend is clearly downwards. The ADX is approaching the 40 level and the –DI is higher than +DI by a considerable amount. This indicates a potential for a strong down market.

The MACD is also painting a negative picture with the indicator below its signal line.

The stock is clearly oversold going by the RSI indicator. However, oversold market doesn’t mean the stock will rebound and going by the negative sentiment so far, any rebound should be seen as an opportunity to get out of this stock.

Dow Update

It was a see-saw trading session on Friday for the US Market. The Dow Industrial Average dropped to a low of 10978 before bouncing to a high of 11239. The Bears attacked the market again bringing the index down to close at 11100.




The index managed to make a higher high and higher low on the 5 minute chart which indicates some strength towards the closed of the session.

The VIX is charging towards the 30 level again, with the indicator hitting a high of 29.44. There are fears in the market again.



The next support for Dow is 10849.

KLCI Update

KLCI index is painting a “Bearish” picture.

The ADX is increasing and is above 20 level which shows a strong trend is developing. The –DI is greater than the +DI by a great margin, indicating a Bearish trend.

The MACD is below its signal line, another evidence of a Bearish market.

RSI is less than 30 indicating that the market is oversold. However an oversold market doesn’t mean that market will rebound strongly.

It is not advisable to trade the market from the long side given the bearish picture.