As shown on the chart, the Bollinger Bands Width expansion is slightly smaller, but the KLCI still ended higher. With the KLCI staying above the Bollinger Middle Band, the expansion of the Bollinger Bands Width would suggests more upside movement, while the contraction of the Bollinger Bands Width would suggest a consolidation for the KLCI. Currently, the Bollinger Middle Band is the immediate dynamic support for the KLCI.

Support for the KLCI is still seen at 1140 WinChart Automatic Fibonacci Retracement line while the resistance is still at 1172 WinChart Automatic Fibonacci Retracement. In addition to that, the 14, 21, 31 EMA should be serving as the dynamic support as well..

As indicated by B, total market volume fell 30.5%, and as a result, the market volume is slightly below the 40-day VMA level. Nonetheless, if volume should return to above the 40-day VMA level, it would be a positive element for the KLCI movement; or else, should volume remain below the 40-day VMA level, the KLCI is less likely to regain its strength.

As circled at C, the Stochastic continue rising, and almost reaching the 100% level. Generally, if the Stochastic should touch 100% level, it would be a sign of an over-heating condition, thus a chance for a technical correction. Nevertheless, provided that the Stochastic could still remain above the 70% level, the market movement for the short term is still 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 1997-2008 Straits Index (M) Sdn Bhd All rights reserved