The KLCI ended mixed on Monday, closing 5.99 points higher to 1321.36 points. As shown on the chart above, the KLCI remains in the range between the 1285 support and the 1332 resistance level. Therefore, unless the KLCI can break out from the resistance, the immediate outlook for the KLCI is likely to be a sideways consolidation. Nevertheless, as indicated by A, the 14, 21, 31 EMA is still serving as the dynamic support to the KLCI.

Total market volume gained 15.2%, with over 1.87 billion shares traded. However, as indicated by B, total market volume is still below the 40-day VMA level, suggesting that the overall market participation is still relatively light. (Study B)

A mixed signal is what the Stochastic is currently showing. As circled at C, %K is rising and about to re-enter the bullish region. However, the %D line almost fell below the 70% level. Nonetheless, at the moment, with the Stochastic still situated above the 50% level, the market movement for the short term is at neutral with a slight 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 1997-2007 Straits Index (M) Sdn Bhd All rights reserved