Straits Index (M) Sdn Bhd
WinChart Technical Analysis
Daily Market Analysis
Send to a Friend Composite Index 06/12/2010
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As indicated by A, the FBM KLCI rose 0.76 of a point, to close at 1501.74 points. The KLCI is still testing 1500 level while the next hurdle is at 1525 ¨C 1532. Meanwhile,. The Bollinger Bands contracted 7%, and this suggests that the FBM KLCI is consolidating, and the consolidation is expected to carry on until the re-expansion of the Bollinger Bands. If the Bollinger Bands should re-expand with the KLCI above the Bollinger Middle Band, it would be a bullish biased signal.

As indicated by B, total market volume remains below the 40-day volume moving average, and this shows that the market is relatively quiet, and the KLCI is less likely to pick up any strength. The low volume also implies a lower investor confidence.

As indicated by C, the Stochastic stays above 70%, in the short term bullish territory. This suggests that the short term movement of the KLCI is likely to stay positive, until the Stochastic should break below 70%.

With the KLCI above the Bollinger Middle Band, as well as the 14, 21, 31 EMA, the technical outlook remains positive. However, the lower market volume is still the main concern for now.

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