(M) Sdn Bhd 

On Friday, the Composite Index ended lower, losing 2.85 points to 916.93 points. As shown on the chart above, the KLCI is supported at 916 level, while the resistance is still at 931 level. If the KLCI dropped below the 916 support, it would be heading to the next support level at the important 900 psychological support level. On the other hand, if the KLCI could rebound from the 916 support, it would be forming a trading range between the 916 and 931 points. (Study A)

As circled by B, both %D and %K line of the Stochastic are situated in the short-term bearish region. As a result, the market sentiment for the short-term is bearish bias until a break out above the 30% level by %K. (Study B)

As pointed by C, the MACH histogram continued falling, suggested the bear was gaining strength. At the moment, the histogram suggests that the market outlook for the short-term is bearish bias. This bearish bias signal would continue until the up tick of the histogram, which by then would form a round bottom signal. (Study C)

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