As shown on the chart above, the Bollinger Bands expanded 24%, with the KLCI above the Bollinger Middle Band, thus the Bollinger Bands is suggesting a bullish signal.

As indicated by B, total market volume fell 13.1%, with volume still above the 40-day volume moving average. Therefore, this suggests that the overall market is still well-participated, as the market sentiment as a whole is still on the positive side.

As indicated by C, the Stochastic retreated slightly, but still above 70%, in the short term bullish region. This suggests that the market movement for the short term is still bullish bias.

In conclusion, the immediate technical outlook for the KLCI remains bullish bias, as the Bollinger Bands re-expands with the KLCI above the Bollinger Middle Band. For the time being, technical readings of the KLCI are showing positive signals. If the Stochastic should break below 70%, it would be a signal suggesting a beginning of a technical correction for the KLCI.

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