US Market

Market continued to rally higher in May. The upward momentum seems to be slowing down as the market hit critical resistance level.

The S&P500 index is approaching its 200 day moving average. The market has been going sideways for the past few trading sessions with the index moving in a band of 880 and 930 levels.

The index has rebounded from its 20 day moving average and seems to be moving towards the upper Bollinger band.

Next week should see the market testing the 930 level.

WTK Holdings

The technical indicators for WTK holdings are showing further strength.

Price managed to close above its 200 day moving average for the first time since Jun 2008.

MACD made a bullish crossover on Friday and ADX is increasing with +DI above –DI. This shows that investors are bullish on this stock.

RSI is approaching overbought levels. Investors can consider entering into this stock on pullback.

Support level is at RM1.09 and RM 0.955 respectively

HAI-O Enterprise Bhd

HAI-O Enterprise Bhd had a good run since Mar 09. It broke the resistance on 27 Mar 09 and reached a high of RM3.96 on 8 May 09.

It has since pulled back and tested its 20 day moving average on Friday.

A few negative signs are developing. Firstly, the MACD indicator made a bearish crossover recently and RSI is coming down from overbought levels. +DI is also getting closer to –DI with a decreasing ADX. This shows a weakening of the up trend.

The stock should find some support at the lower Bollinger band if it breaks through its 20 day moving average.

KLCI

KLCI broke through its 200 day moving average, made a test before resuming its current bullish trend. This is a good sign for the market. It shows that investors are willing to buy on pullbacks.

RSI is showing a slight divergence with the indicator making a lower high on 7 May 09.

Immediate resistance level is at 1040 and 1060. Pull back should find support at 1000 level.