As indicated by A, the FBM KLCI rose 2.66 points, to close at 1315.14 points. Support for the KLCI is at 1308.39 which is the 23.6% Fibonacci Retracement line, and the resistance is at 1334.34 WinChart Automatic Fibonacci Retracement.

As shown on the chart above, the Bollinger Bands contracted 15%, suggesting that the KLCI is still consolidating while preparing for a new movement. However, the immediate technical outlook is positive as the KLCI is now above the Bollinger Middle Band.

As indicated by B, total market volume increased only 0.5%, but still firmly above the 40-day VMA level, suggesting that the market is still well-participated. This is a positive element which would help lift the market sentiment.

As indicated by C, the Stochastic touched 100% level, suggesting that the short term movement of the KLCI is indeed bullish but over-heated. Nevertheless, provided that the Stochastic is still above 70%, the short term bullishness of the KLCI shall remains intact.

In conclusion, the KLCI is still consolidating while preparing for a new movement, and we shall wait for the re-expansion of the Bollinger Bands, then to determined the new direction with the guidance of the Bollinger Middle Band.

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