As shown on the chart above, the Bollinger Bands contracted 8%, suggesting that the KLCI is having its technical correction, or the KLCI is entering its consolidation. Provided the KLCI is still above the Bollinger Middle Band, the immediate technical outlook for the KLCI shall stay positive.

As indicated by B, total market volume fell 9.47%, with volume above the 40-day volume moving average. Generally, the market sentiment as a whole remains positive, with volume above the 40-day volume moving average.

As indicated by C, the Stochastic fell below 70%, thus ended the short term bullish signal, and triggered a beginning of a technical correction. The Stochastic has to return to above 70%, in order to resumes its short term bullish signal.

In short, the KLCI is having its technical correction, but this has not violated the uptrend of the KLCI as the KLCI remains supported by the 14, 21, 31 EMA.

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