Straits Index (M) Sdn Bhd
WinChart Technical Analysis
Daily Market Analysis
Send to a Friend Composite Index 22/10/2010
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As indicated by A, the KLCI had its daily low touching 1489.52 points, which is where the Bollinger Middle Band is, and the KLCI managed to rebound slightly at this level. Support for the KLCI remains at 1480 while the resistance is at 1500 level.

As shown on the chart above, the Bollinger Bands contracted 7%, suggesting that the KLCI is still consolidating, but with the KLCI still supported by the Bollinger Middle Band, the immediate technical outlook for the KLCI is still on the positive side.

As indicated by B, total market volume fell 14.2%, with volume still above the 40-day volume moving average. Overall market is still well-participated, and therefore, the market sentiment as a whole is likely to stay on the positive side.

As indicated by C, the Stochastic stays at 50%, which is a neutral signal, suggesting that the short term movement of the KLCI is at its consolidation stage. Technically, the Stochastic has to break above 70%, in order to return to the bullish region.

Basically, the overall uptrend for the KLCI remains intact, and the KLCI is now consolidating in a sideways manner, until the re-expansion of the Bollinger Bands.

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