Together with the positive performance of the regional markets, the KLCI opened gap up on Friday. As indicated by A, the KLCI is testing the 1300 resistance level, and the next immediate resistance is at 1308.52 WinChart Automatic Fibonacci Retracement. The next resistance for the KLCI is seen at 1354 points while the support is now at 1288.66 WinChart Automatic Fibonacci Retracement.

As shown on the chart above, the Bollinger Bands expanded 16%, with the KLCI above the Bollinger Middle Band, thus the bullish signal is now resumed, and the bullish movement is expected to continue until the Bollinger Bands should contract.

As indicated by B, total market volume increased 29.6%, while volume is getting closer to the 40-day VMA level. Technically, if volume should stay above the 40-day VMA level, the market sentiment as a whole is expected to improve.

As indicated by C, the Stochastic rebounded, and remain above 70% level, thus the short term bullish signal remains intact, until the Stochastic should break below 70% level.

In conclusion, the Bollinger Bands is showing a bullish signal again, but the KLCI is capped by the 1300 psychological resistance level. If the Bollinger Bands should continue to expand, the bullish biased movement is expected to carry on, and of course, the performance of the regional market places an important role in leading the KLCI as well.

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 1997-2010 Straits Index (M) Sdn Bhd All rights reserved