(M) Sdn Bhd 

On Thursday, the Composite Index ended mixed again, adding 0.93 of a point to 928.10 points. As shown on the chart above, the KLCI retested the 931 resistance level and once again remains resisted. Support for the KLCI is now at the 10 days Bollinger middle band dynamic support, as well as the 14 days Moving average line, which is the first line of the multiple moving averages.

From the reading of the multiple moving averages, up trend for the KLCI remains intact. With three of the moving averages line rising in convergence, market outlook for the KLCI is still on the positive bias. (Study A)

Total market volume on Thursday decreased 17%, stood at 888 million shares. While the volume on Thursday might seemed considerable lower, it is still above the 40 days VMA level, suggesting that the market is still relatively active. However, in order to break above the immediate hurdle at 931, a higher volume is needed. (Study B)

As indicated by C, DMI is still showing a bullish signal for the KLCI. With the +DI line rising, coupled with the confirmation of the rising ADX line, the uptrend of the KLCI is still in healthy condition. It pays to monitor the slope of the +DI line, for a downturn of it could suggests a weakening of the trend. (Study C)

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