As indicated by A, the KLCI continued its technical correction on Tuesday, closing 10.14 points to 1366.99 points. The KLCI is now testing the 1368 support level as well as the 14, 21, 31 EMA dynamic support level. If the KLCI should rebound from the dynamic support, the uptrend shall remains intact. (Study A)

Total market volume on Tuesday was almost unchanged with around 151 million shares traded. As indicated by B, total market volume is still above the 40-day VMA level, suggesting that the overall market is relatively well-participated. However, if the KLCI should resume its uptrend, more volume is needed to sustain the bullish sentiment. (Study B)

As circled at C, the Stochastic %K line is now at the neutral region with the %D line barely holding up above the 70% level. If the %D line should fall below the 70% level, it shall confirm the %K line signal and 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