KLCI ended higher on Thursday, and is set to retest the immediate resistance at 1285.15 point. (Study A1). If the KLCI could break above the 1285.15 resistance, it might resume its uptrend, with the 14, 21, 31 EMA continued serving as the dynamic support. (Study A)

However, breaking above the 1285.15 resistance shouldn't be easy for it was a multi-year high, with record high volume of over 4.7 billions shares of daily transacted volume. Therefore, to have a valid and convincing break out, we need to see more promising increased of volume.

As pointed by B, total market volume declined 32.6% on Thursday, and stay further below the 40 days VMA level. This shows weakness in the market participation, thus unable to support the KLCI if the KLCI was to test the immediate resistance. (Study B)

No clear signal from the MACD histogram for it almost ended flat on Thursday. If the histogram ticked lower, it would be a weakening of the bullish MACD signal. Nevertheless, the MACD line remained rising, and therefore, the bullish signal remained intact. (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