As indicated by A, the FBM KLCI remains above the Bollinger Middle Band and the Bollinger Bands Width also expanded 46%, and therefore, the KLCI gained another 11.68 points, closing the day at 1202.07 points. Despite the KLCI managed to close slightly above the 1200 level, the current resistance remains at 1200 psychological level, unless the KLCI could sustain above the 1200 level in the coming days.

The 14, 21, 31 EMA is still supporting the KLCI, and therefore, the KLCI uptrend remains intact, and the 14, 21, 31 EMA shall continue serving as the dynamic support for the KLCI. In other words, provided that the KLCI is supported by this dynamic support, the outlook for the KLCI is still positive.

As indicated by B, total market volume increased 11.6%, while getting closer to the 40-day VMA level. In short, volume above the 40-day VMA level is imperative if the KLCI should maintain its healthy uptrend.

As circled at C, the MACD histogram is testing the zero level, and it is likely to break into the positive region. This suggests that the KLCI is still gaining strength until the MACD histogram should form a Rounding Top.

With the Bollinger Bands Width still expanding, the bullish biased movement of the KLCI is expected to continue until the Bollinger Bands Width should contract. Meanwhile, the 1200 resistance is still a hurdle for the KLCI and if the KLCI should successfully break above this important resistance level, more upside room is likely for the KLCI.

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 1997-2009 Straits Index (M) Sdn Bhd All rights reserved