Despite the KLCI rebound, the immediate technical outlook remains on the negative side as it is still below the Bollinger Middle Band. If the Bollinger Bands should begin to contract, it would be a signal suggesting a consolidation for the KLCI.

As indicated by B, total market volume fell 9.4%, with volume below the 40-day volume moving average. In short, the market is quiet. If volume should stay low, the KLCI or the general market sentiment is less likely to pick up any strength.

As indicated by C, the Stochastic rebounded after hitting 0%. But it is still below 30% now, thus suggesting a short term bearish signal for the KLCI. The short term bearish signal shall remains intact, until the Stochastic could break above 30%.

As the KLCI fell below the 14, 21, 31 EMA, the technical outlook for the KLCI is now turning bearish. If the KLCI should form a lower-high, it would be a signal suggesting a downtrend formation. In short, the KLCI has to return to above the 14, 21, 31 EMA in order to avoid further dampen to its technical view.

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