Market is confirmed in the initial stage of a rally though the life span still has to depend on external factors.



Asian stocks rose for a fifth day and metals advanced as economic reports added to optimism that a U.S. recovery will support global growth.



Economists said a report today will show U.S. industrial production expanded in May by the most in four months, adding to evidence the global recovery may shrug off Europe?s debt crisis. (Bloomberg)



After 5.00pm, regional market mostly finished marginal higher and European market progressed with gain of 0.25%.



At the local front, FBMKLCI hiked more than 3 points shortly after opening and broke the 1,300 psychological barrier. The Index then stayed on high plateau most of the time but closed off high at 1,303.13 (+4.76/0.37%). FBMKLCI Average (Pivot Point) was 1,306.12 (+8.03). Total volume was 662 mln (+151).



Market sentiment was good and volume traded gradually higher. The Oscillator finished at +512.58 gained 233.19, when compares with its starting point. The Average recorded a gain of 408.46.



At day's end, 12EMA (blue) of MSCD hiked to positive zone at +35.12 (+67.86), 26EMA (red) to -71.18 (+38.39) and the Histogram, +106.30 (+29.47).



Conclusion

(Click on chart to view)



While some analysts still maintain their firmly bearish outlook for near-term FBMKLCI the MSCD has shown its positive trend since June 2 when 12EMA cut 26EMA from underneath. The trend further confirmed by FBMKLCI which has broken through the 1,300 psychological resistance, today.



In the MSO, 12EMA surged into positive area and the Histogram casts yet another long positive bar after today?s trade. Market is confirmed in the brewing of a rally though the life span still has to depend on external factors.



Meantime, many would have clapped their hands on news that SC has obtained an injunction to refrain Datuk Ishak Ismail from dealing with RM10.2 million, proceeds from his disposal of about 58.7 million shares of Kenmark Industrial Co (M) Bhd.



My Portfolio: Pick up Magna.