(M) Sdn Bhd 

On Thursday, the Composite Index closed at the daily high at 927.51 points, gaining 3.11 points. As pointed by A, the KLCI remains supported by the 10 days Bollinger middle band dynamic support. Mean while, 10 days Bollinger band width contracted 13%, suggesting the KLCI consolidation is not yet finish. However, with the KLCI moving sideways with low volatility for more than 5 days now, the re-opening of the Band width would usually be clearer, thus the new direction of KLCI is due to disclose soon.

Nevertheless, resistance for the KLCI remained at the 931 level, while the support is at 10 days Bollinger middle band as well as the 920 Fibonacci retracement level. In additional, the up trend channel of T1 and T2 is still intact.

Total market volume on Thurs dropped another 16.6%, ended with 554 million shares. Volume at this level is below the 40 days VMA level, suggesting that the market participation is colling off relatively. Total market volume must regain its level above the 40 days VMA if the KLCI were going to break above the 931 level. (Study B)

As shown by C, the MACD histogram stopped declining on Thursday. If the histogram were to rise again, it would suggest an end to the short-term technical correction; thus, more up side room for the KLCI. Anyhow, at the moment, volume is still the most important factor to the continuation of the up trend.

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