The KLCI continued its consolidation on Wednesday, closing 2.01 points higher to 1374.39 points. As indicated by A, the KLCI remains supported by the rising 14, 21, 31 EMA, which is still serving as the dynamic support for the KLCI. If the KLCI can rebound successfully from the dynamic support, it would test the resistance at the all time high at 1392.18 points.

As indicated by B, total market volume increased 10.1% on Wednesday, with the volume remains higher above the 40-day VMA level. This shows that the overall market is still resilient and with volume staying above the 40-day VMA level, it would help to sustain the positive market sentiment. Nevertheless, if the KLCI should break above the all time high, volume must increase significantly to confirm the break out.

As indicated by C, the Stochastic %K line rebounded while staying below the 70% level. Meanwhile, the Stochastic %D line remains above the 70% level, which is the short term bullish region. If the Stochastic %K line should return to above the 70% level, it would be another short term bullish region, and the KLCI short term movement would be bullish biased.

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