Straits Index (M) Sdn Bhd
WinChart Technical Analysis
Daily Market Analysis
Send to a Friend Composite Index 08/09/2010
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Despite the falling of regional markets, the KLCI only fell 0.13 point, to close at 1434.14 points, and therefore, the immediate resistance for the KLCI still at 1436 while the support is at 1400 level. The 1436 is the level of the Right Shoulder of the Head and Shoulder Top pattern in 2008.

As shown on the chart above, the Bollinger Bands is still contracting, suggesting that the KLCI is consolidating, but the Bollinger Middle Band is the dynamic support for the KLCI, thus the immediate technical outlook is still on the positive side.

As indicated by B, total market volume fell another 5.4%, with volume below the 40-day VMA level. This shows that the market is relatively quiet as it is consolidating; investors are mostly on the sidelines.

As indicated by C, the Stochastic remains above 70%, in the short term bullish region. Thus suggesting that the short term movement of the KLCI is still bullish biased, unless the Stochastic should break below 70%.

In conclusion, the KLCI is still well-supported by blue chips component, despite technical correction is taking place in regional markets. Technically, provided that the KLCI is still above the Bollinger Middle Band, and the 14, 21, 31 EMA, the uptrend shall remain intact.

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