Despite the early gain, the KLCI failed to break out from the 926.88 Fibonacci Retracement resistance successfully, ended the day losing marginally. As pointed by A, 926.88 Fibonacci Retracement remained as the immediate resistance to the KLCI while the gradually rising 14, 21, 31 EMA are serving as the dynamic support together with the 916.59 Fibonacci Retracement. (Study A)

Total market volume on Tuesday stood at around 1.05 billion shares. As you might have known, price changes represent the conflict between bullish buyer and bearish sellers, while the volume depicts the intensity of the conflict. In this case, with relatively high volume on Tuesday, the KLCI remained resisted by the resistance, which suggested a relatively strong intensity at this resistance level, thus reinforced this resistance. (Study B)

MACD histogram round top signal remained intact on Tuesday, suggested that the consolidation of the KLCI has not ended yet. However, based on the MACD, no bearish signal has been triggered at the moment. As soon as the histogram started rising again, it shall signal an end to the consolidation and the bullish signal shall regain its strength. (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