On Wednesday, the FBM KLCI gained 1.90 points to close at 1290.08 points. Support for the KLCI remains at 1284 (38.2% Fibonacci Retracement Line) while the resistance is at 1297 to 1300 level.

The Bollinger Bands expanded 4%, which is still insignificant, and meanwhile the 14, 21, 31 EMA is still serving as the dynamic resistance for the KLCI, as indicated by A, therefore, the KLCI is still consolidating.

As indicated by B, total market volume increased 20.9%, but still below the 40-day VMA level, despite that the 40-day VMA line is falling. In short, the market is still quiet, thus the KLCI or the market is less likely to pick up any strength.

As indicated by C, the Stochastic stays above 70%, thus suggesting that the short term movement of the KLCI is still on the positive side. Generally, the short term bullish biased movement is expected to carry on until the Stochastic should break below 70%.

In short, the KLCI movement is still unclear while still consolidating below the 14, 21, 31 EMA. Also, the Bollinger Bands has not expanded clearly, thus the is likely to stay trendless for now.

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