Without any surprise, the KLCI had another lackluster trading day on Friday, closing almost flat at 1360.65 points. As shown on the chart above, the trading range for the KLCI between of 1368 resistance and the 1332 support remains intact, and therefore, this suggests that the KLCI is still consolidating. Meanwhile, as indicated by A, the 14, 21, 31 EMA is still serving as the dynamic support to the KLCI.

Total market volume was lower and stood below the 40-day VMA level. This shows that the overall market participation is still relatively low, and therefore, the KLCI is likely to stay in its sideways consolidation, as the market is still lacking of sufficient inflow of fresh capital. (Study B)

On Friday, the Stochastic is still showing a short term neutral signal, and therefore, the market movement for the short term is still at neutral. Also, provided that the KLCI is still moving sideways, the Stochastic is expected to stay between the 30% - 70% range. (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