KLCI opened gap up on Monday, however, the KLCI soon retreated and ended mixed with a 3.11 point gain. Although the KLCI has breached above the 1100 points marginally, it is still trading at the border line of the 1100 resistance level. Nevertheless, the KLCI is still at a consolidation stage with the 14, 21, 31 EMA is still serving dynamic support (Study A).

Total market volume on Monday remained low despite the opening gap, this suggested that the market is still consolidating and with the volume at this relatively weak level, the KLCI is unlikely to resume to its uptrend. This suggested that most investors are staying side lined and thus a consolidation for the KLCI. (Study B)

Both Stochastic %K and %D declined on Monday, and fell below 90% level. This signaled a beginning of a technical correction. However, provided that the Stochastic is still above 70% level, the market movement for the short-term is still bullish bias. (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