Straits Index (M) Sdn Bhd
WinChart Technical Analysis
Daily Market Analysis
Send to a Friend Composite Index 20/10/2010
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As indicated by A, the KLCI opened lower on Wednesday, as affected by the overnight losses of the US markets. However, the KLCI managed to regain most of the losses, and closing at 1486.78 points, losing only 1.87 points. Resistance for the KLCI remains at 1500 level while the support is at 1480.

Meanwhile, the Bollinger Bands contracted 21%, suggesting that the KLCI is consolidating, until the re-expansion of the Bollinger Bands.

As indicated by B, total market volume fell 0.7%, but still above the 40-day volume moving average. This suggests that the overall market is still actively participated, and as long as volume could remain above the 40-day volume moving average, the market sentimen in generally is likely to stay positive.

As indicated by C, the Stochastic fell slightly, while still below 50%. This suggests that the short term movement of the KLCI has not picked up any strenght yet. If the Stochastic should fall below 30%, it would be a short term bearish signal for the KLCI.

With the KLCI below the Bollinger Middle Band, immediate technical outlook turns slightly negative. However, with the Bollinger Bands contracting, the KLCI is likely to move in a sideways manner.

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