On Thursday, the KLCI ended marginally lower with a daily low touching 1336.16 points. As indicated by A, the KLCI Friday's daily low was precisely supported by the 14 day EMA line, and therefore, the 14, 21, 31 EMA is still serving as the dynamic support to the KLCI. If the KLCI should continuously supported by the dynamic support, the uptrend is likely to sustain. (Study A)

Total market volume declined 11.3% while still remained further below the 40-day VMA level. This suggests that the overall market participation is indeed low, and therefore, without sufficient volume, the KLCI is unlikely to stay below the 1368.87 resistance level. (Study B)

As circled at C, Stochastic is staying at the border line of the short term bullish region. If the Stochastic should fall below the 70% level, the market movement for the short term would turn from bullish biased to neutral. (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