As lead by the positive performance of markets across the globe, the KLCI opened gap up on Friday. However, the KLCI only managed to close marginally higher after the its opening, forming a narrow candle stick, as circled at A. Support for the KLCI is still at 1248 WinChart Automatic Fibonacci Retracement while the resistance is at 1270 WinChart Automatic Fibonacci Retracement.

As shown on the chart above, the Bollinger Bands expanded only 2%, but still, it implies that the Bollinger Bands is re-expanding. If the Bollinger Bands should continue to expand, with the KLCI above the Bollinger Middle Band, the KLCI is likely to test the 1270 resistance level.

As indicated by B, total market volume declined 6.2%, but still firmly above the 40-day VMA level. In short, overall market is still well-participated, and the relatively high volume is suggesting that the market sentiment is still positive.

As circled at C, the Stochastic breaks above 70% level, entering the short term bullish territory. If the Stochastic could remain above 70%, the market movement for the short term is expected to be bullish biased.

With the KLCI above the Bollinger Middle Band, the immediate outlook for the KLCI is on the positive side, while waiting for the Bollinger Bands expansion to confirm a bullish signal, and the bullish signal shall carry on until the Bollinger Bands should contract again.

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