As indicated by A, the FBM KLCI tested the 1297 WinChart Automatic Fibonacci Retracement, gaining 2.49 points or 0.2% to close at 1297 points. 1297, which is the 50% Retracement line, is still the resistance for the KLCI while the support is at 1284.38 WinChart Automatic Fibonacci Retracement.

As shown on the chart above, the Bollinger Bands contracted 24%, which suggests that the KLCI is still consolidating, until the re-expansion of the Bollinger Bands.

As indicated by B, total market volume increased only 0.1%, with volume still below the 40-day VMA level. This shows that the market is indeed quiet, as inflow of fresh capital is still low. Therefore, the KLCI is less likely to pick up its strength.

As indicated by C, the Stochastic remains above 70%, in the short term bullish territory. Therefore, this suggests that the short term bullish movement of the KLCI is still intact, until the Stochastic should break below 70%.

In conclusion, the KLCI has not broken above the 14, 21, 31 EMA, and therefore, the overall trend is still on the weaker side. For the mean time, the KLCI consolidation is expected to carry on, until the re-expansion of the Bollinger Bands.

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