On Thursday, the FBM KLCI is still fluctuating at a narrow range, while waiting for more fresh lead. As indicated by A, the KLCI had its intra-day low touching the Bollinger Middle Band, and rebounded. This suggests that the Bollinger Middle Band is still the support for the KLCI. Meanwhile, the 1248 WinChart Automatic Fibonacci Retracement is also the support for the KLCI, while the resistance is at 1270 WinChart Automatic Fibonacci Retracement.

As shown on the chart above, the Bollinger Bands contracted only 3%, suggesting that the Bollinger Bands might be re-expanding soon, and the KLCI is about to begin a new movement. If the KLCI should stay above the Bollinger Middle Band as the Bollinger Bands re-expands, it would be a bullish biased signal for the KLCI.

As indicated by B, total market volume increased 21.2%, while volume is still firmly above the 40-day VMA level. This shows that the market is still actively participated. However, most of the actively traded stocks are low-priced counters. Nonetheless, generally, if volume should remain above 40-day VMA level, the market sentiment is usually positive.

As circled at C, the Stochastic is staying above 50% level, giving some slight implication that the KLCI short term movement is still slightly bullish biased. This is an unconfirmed, early implication of a bullish biased signal. By right, the Stochastic has to break above 70% level, in order to signal a bullish short term movement for the KLCI.

In short, the KLCI is still holding up well despite negative performance across regional markets. If the regional markets should rebound, the KLCI is likely to regain some strength.

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