As indicated by A, the KLCI continues its sideways movement while the direction is still unclear, closing 0.6% lower to 877.65 points. Therefore, the 887 WinChart Automatic Fibonacci Retracement is still the resistance for the KLCI while the 800 mark is still the support level for the KLCI.

As shown on the chart, the Bollinger middle band is still the dynamic resistance for the KLCI, and as long as the KLCI is still below the Bollinger Middle Band, the immediate outlook is still bearish biased. Meanwhile, the Bollinger Bands Width is likely to expand, and therefore, the is certainly a risk for the KLCI.

Nevertheless, we still need to wait until the Bollinger Bands Width expands in order to determine the KLCI movement. If the KLCI should remain below the Bollinger Middle Band as the Bollinger Bands Width expands, it would be a bearish signal for the KLCI.

As indicated by B, total market volume increased 4.7%, but still remain below the 40-day VMA level, suggesting that the overall market is still relatively quiet. But still, it is rather normal to have relatively lower volume during the sideways consolidation.

As circled at C, the Stochastic is still below 30% level, which is the short term bearish signal. As long as the Stochastic is still below 30% level, the market movement for the short term 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