(M) Sdn Bhd 

On Thursday, the Composite Index ended mixed again, easing 1.09 points to 923.15 points. As shown on the chart above, the KLCI is still supported by the 920 Fibonacci Retracement line as well as the 10 days Bollinger Middle band dynamic support. Resistance for the KLCI is still at the 931 level.

Although the 10 days Bollinger band width expanded 3%, this amount is too small to consider any signal. Overall, the sentiment was at mixed with a relatively long upper and lower shadow line on Thursday's candle. (Study A) Nevertheless, T3 remains the up trend dynamic support.

As indicated by B, total market volume on Thursday stood at 1.04 billion shares, or 23.5% increased from the previous total market volume. Needless to mention, volume on Thursday was higher than the 40 days VMA level suggested that the market was well participated. With the KLCI supported by 920, growth of market volume would generally do good to the market sentiment. However, if the KLCI lost ground at the support level with high volume, that could severely dampen the overall market sentiment. (Study B)

As circle by C, %K of the Stochastic retreated slightly, but still managed to stand above the 70% level, which is a short-term bullish region. With the %D line now above the 70% level, market sentiment for the short-term is expected to be bullish bias provided that both of these lines could hold up above the 70% level. (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