On Tuesday, the KLCI rebounded 8.77 points to close at 1373.14 points. As shown on the chart above, the 1391.57 level is the resistance for the KLCI while, as indicated by A, the 14, 21, 31 EMA is now serving as the dynamic support to the KLCI. Until the KLCI can break above the 1391.57 resistance, the KLCI is expected to be trading in a sideways movement.

Total market volume on Tuesday increased 26.1%. As indicated by B, total market volume managed to break above the 40-day VMA level, suggesting an increasing market participation. If the volume should remains above the 40-day VMA level, it would improve the market sentiment thus increase the investors confident. (Study B)

As circled at C, the Stochastic %K line continued rising and now situated in the neutral region. If the %D line should break above the 30% level, it would 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