Straits Index (M) Sdn Bhd
WinChart Technical Analysis
Daily Market Analysis
Send to a Friend Composite Index 18/11/2010
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As indicated by A, the FBM KLCI fell 6.89 points or 0.46% on Thursday, to close at 1496.65 points, breaking below the 1500 level by margin, but it managed to stay above the 1487.17 WinChart Automatic Fibonacci Retracement, which is the support for the KLCI, while the resistance is at 1500 followed by 1532.

As shown on the chart above, the Bollinger Bands expanded 11%, with the KLCI below the Bollinger Middle Band, thus immediate technical outlook for the KLCI is slightly negative. If the KLCI should continue to expand while the KLCI stays below the Bollinger Middle Band, more downside movement is expected for the KLCI.

As indicated by B, total market volume fell 15.2%, with volume below the 40-day volume moving average. This shows that the market participation has reduced, and it is a sign of lack of confidence as investors stay on the sidelines.

As indicated by C, the Stochastic breaks below 30%, entering the short term bearish region, and if the Stochastic should stay below 30%, the market movement for the short term is likely to stay bearish bias.

In conclusion, immediate technical outlook for the KLCI is slightly on the negative side, but the KLCI has not formed a downtrend yet, for the 14, 21, 31 EMA is still supporting the KLCI.

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