As indicated by A, the KLCI break out from the symmetrical triangle, which is a consolidation pattern. This suggests that the KLCI is likely to continue its uptrend after breaking away from its consolidation. However, the KLCI must break above the 1391.57 resistance with significant volume.

Total market volume increased 1.4% on Friday, with the volume still barely staying above the 40-day VMA level. This suggests that the market still relatively well participated, but if the KLCI should test the 1391.57 resistance, we definitely need more volume than this. (Study B)

On Friday, the Stochastic %K breaks above the 70% level, triggered an unconfirmed short term bullish signal. If the Stochastic %D line should break above the 70% level, it would confirm the %K line signal, and the market movement for the short term would be bullish biased. (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