As shown on the chart above, the Bollinger Bands contracted 1%, suggesting that the KLCI might be consolidating after rising for a few days, but immediate technical outlook remains positive as the KLCI is still above the Bollinger Middle Band.

As indicated by B, total market volume increased 33.4%, breaking above the 40-day VMA level, suggesting that the market is relatively active again. Generally, market sentiment shall remains positive if total market volume should stay above the 40-day VMA level.

As indicated by C, despite the %K line crosses below the %D line, the Stochastic remains above 70%, thus suggesting that the short term bullish signal is still intact. If the Stochastic should break below 70%, it would be a signal suggesting a beginning of a technical correction.

In short, the KLCI uptrend remains intact, as the 14, 21, 31 EMA is still serving as the dynamic support for the KLCI. With the Bollinger Bands started to contract, the KLCI is expected to consolidate for now, with positive technical outlook.

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