(M) Sdn Bhd 

Composite Index closed higher, gaining a modest 2.13 points to 913.8 points. At the moment, the KLCI is still resisted by the 914 resistance line. Mean while, as indicated by the A circle, KLCI remained above the 20 days Bollinger upper band, which implies that the KLCI is at an over-heated situation. As a result, a technical correction is likely to happen soon. (Study A)

Total market volume remained high at 620 million shares, while maintain above the 40 days VMA level. This suggests that the market participated is still active. Provided that the market remains active, the outlook for KLCI would likely be bullish despite the short-term correction. (Study B)

As pointed in C circle, the MACD histogram is still rising in which the bullish signal from the MACD remains strong. However, it pays to study the histogram closely for if a round top signal is formed, it shall suggests a consolidation or technical correction for the KLCI. (Study C)

Straits Index (M) Sdn Bhd
No. 16, Jalan LP 1A / 5, Lestari Perdana,
43300 Seri Kembangan, Selangor
Tel: (03) 8941 6828     Fax: (03) 8941 9828     Email: info@straitsindex.com
© Copyright 1997-2006 海峡指数版权所有.All rights reserved