On Friday, the KLCI ended lower to 1352.39 points while continue staying within the trading range of the 1368 resistance and the 1332 support. Meanwhile, as indicated by A, the KLCI is still supported by the 14, 21, 31 EMA dynamic support. Unless the KLCI can break out from the trading range, the direction for the KLCI remains unclear.

As indicated by B, total market volume for Friday declined 8.3% while still staying below the 40-day VMA level. Therefore, it clearly states that the market participation is still low. In another words, this suggests that the market is lack of inflow of capital, and therefore, it is likely to remain in its sideways movement.

As circled at C, the Stochastic %K line falls below the 70% level, giving an unconfirmed signal of the short term neutral signal. If the %D line should fall below the 70% level, it shall confirm the %K signal and the market movement for the short term would be at 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