Winchart Technical Analysis
Daily Market analysis
On Thursday, the KLCI fell a total of 44.21 points. The KLCI also breaks below the 50% Fibonacci Retracement support line at the 1241 level. At the moment, the KLCI is supported by the 1205 Fibonacci Retracement line, and if the KLCI should rebound from this level, it is likely to consolidate at this level.
Meanwhile, as circled at A, the KLCI has fallen below the 20-day Bollinger Lower Band, and therefore, suggesting that the KLCI is now at an over-sold situation. Therefore, the KLCI is likely to have a technical rebound. However, if the KLCI should remains below the falling 14, 21, 31 EMA, the immediate outlook shall remains bearish biased.
Total market volume on Thursday increased 26.8%. However, the increase of volume as the KLCI fall sharply could imply an increase of selling intensity. Unless the KLCI could rebound with sustainable volume above the 40-day VMA level, or the market sentiment should remains bearish biased. (Study B)
On Thursday, the Stochastic is still showing a bearish signal. As circled at C, the Stochastic is now slightly below the 10% level, which is the short term over-sold region. Therefore, there is a chance for the KLCI to rebound in the near term. However, if the Stochastic should remains below the 30% level after the technical rebound, the market movement for the short shall remains bearish biased. (Study C)
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