Despite the KLCI closed at 1022.30, breaking above the 1021 resistance by slightly more than 1 point, it was too closed to call for a break out. Therefore, the KLCI is still testing the 1021 resistance. Mean while, as circled by A, the KLCI is still above 20 days Bollinger Upper band, and therefore, a technical correction is still due to take place. However, with the KLCI still being supported by the rising 14, 21, 31 EMA, the outlook for the KLCI still positive.

Total market volume on Friday was 1.2% lower, while remained above the 40 days VMA level. Therefore, this suggested that the market was still widely participated. (Study B)

Stochastic %D entered above the 90% level, which is the short-term over-bought region. Therefore, this suggested that the short-term market condition is indeed over-heated. Therefore, a technical correction is likely to happen. However, provided that the Stochastic could stay above the 70% level, the short-term market sentiment is still positive. (Study C)

Find this analysis useful? Why not share it with others? Click Here to send this to a friend

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