As pointed by A, the Bollinger Band width remained contracted, and suggested that the KLCI is still consolidating. Mean while, the Bollinger middle band and the 14, 21, 31 EMA shall continue serving as the dynamic support, and as indicated by A1, the 1285.15 points shall be the next resistance.

Total market volume was almost unchanged with 181 million shares traded. Despite the KLCI ended higher, total market volume was below the 40 days VMA. This shows the inconsistency of market participation, thus the up move of the KLCI is still unconvinced. Nevertheless, if the KLCI was to retest the 1285.15 resistance with such relatively thin volume, chances for the breakout would be thin.

Despite the KLCI ended more than 10 points higher, MACD histogram remained falling thus the rounding top signal is still intact. This suggested that the bullish signal is still weakening. The weakening bullish signal shall continued until 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 1997-2007 Straits Index (M) Sdn Bhd All rights reserved