As shown on the chart, the Bollinger Bands expanded 27%, with the KLCI below the Bollinger Middle Band, thus the KLCI ended lower, losing 7.94 points to close at 1299.50 points. Support for the KLCI remains at 1297 ~ 1300 level, while the resistance is at 1309 WinChart Automatic Fibonacci Retracement.

Meanwhile, the KLCI fell below 14, 21, 31 EMA, thus suggesting that the KLCI is has failed to stay in its uptrend, and the technical outlook is turning negative.

As indicated by B, total market volume fell 28.2%, with volume further below the 40-day VMA level. This shows that the market is quiet, thus the investors' confidence is also low. Therefore, the KLCI is less likely to pick up any strength.

As indicated by C, the Stochastic breaks below 10%, suggesting that the KLCI short term movement is still weakening. Generally, with the Stochastic below 30%, the short term movement of the KLCI is expected to be on the bearish side, until the Stochastic could break above 30%.

With the KLCI breaking below the Bollinger Middle Band as well as the 14, 21, 31 EMA, the technical picture of the KLCI is now bearish biased, and the negative performance of foreign markets remain a catalyst for 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