As shown on the chart above, the KLCI broke above the 1038 resistance level again on Wednesday, ended the day 7.65 points higher to 1043.81. However, the break out is still yet to be confirmed as the break out is still at the border line of the resistance. Nevertheless, as pointed by A, the 14, 21, 31 EMA is still rising and being the dynamic support to the KLCI. Therefore, the outlook for the KLCI is still positive bias. (Study A)

As pointed by B, total market volume on Wednesday increased 32.7% with over 1.3 billion shares traded. The increased of volume is likely to confirm the break out provided that more volume could follow through. Nonetheless, with the total market volume standing above the 40 days VMA level, the bullish sentiment for the market is likely to sustain. (Study B)

Despite the KLCI making yet another multi-years new high, MACD histogram continue ticking lower and therefore still forming a rounding top. This suggested that the short-term market movement for the KLCI is still on a consolidation mode, unless the MACD histogram ticked up and formed a rounding bottom. (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