KLCI ended lower on Friday, ended 16.23 points to 1164.68 points. As pointed by A, the 14, 21, 31 EMA started falling while serving as the dynamic resistance to the KLCI. Therefore, provided that the KLCI remained below the falling dynamic resistance, the outlook for the KLCI would be bearish bias. (Study A)

Total market volume fell 24.8%, while failing to reach the 40 days VMA level. This suggested a declined in investors interest, thus many investors stayed sideline. If the KLCI was to break above the falling 14, 21, 31 EMA, it should accompanied with a growth of volume; or else, breaking above the falling resistance is not likely. (Study B)

As circled by C, Stochastic fell below 30% level, giving a first short-term bearish signal. If the %D line stayed below 30% level, the market movement for the short-term is likely to stay bearish 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 1997-2007 Straits Index (M) Sdn Bhd All rights reserved