The KLCI continue to fall on Thursday, closing 16.20 lower to 1196.39. As indicated by A, the 14, 21, 31 EMA is still serving as the dynamic resistance for the KLCI. Therefore, provided that the dynamic resistance is still falling while the KLCI is still below the dynamic resistance, the bearish biased view is still intact. Support for the KLCI is at 1157 Fibonacci Retracement line.

As indicated by B, total market volume increased 5.3%, and the increase of volume was also resulted a loss in the KLCI, which suggested some increase of selling pressure. If the volume should increase significantly as the KLCI falls, it would further dampen the market sentiment.

As circled at C, the Stochastic remains below the 30% level short term bearish region, suggesting the short term market movement for the KLCI is still bearish 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 1997-2008 Straits Index (M) Sdn Bhd All rights reserved