Straits Index (M) Sdn Bhd
WinChart Technical Analysis
Daily Market Analysis
Send to a Friend Composite Index 09/12/2010
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As indicated by A, the Bollinger Bands expanded 33%, with the KLCI above the Bollinger Middle Band, thus showing a positive signal for the KLCI. The KLCI gained 11.23 points or 0.74%, to close at 1521.29 points. Resistance for the KLCI remains at 1525 followed by 1532 while the support is still at 1500. Meanwhile, the 14, 21, 31 EMA is still supporting the KLCI, as a long term dynamic support. This shows that the technical outlook for the KLCI remains positive.

As indicated by B, total market volume gained 40.66%, with volume breaking above the 40-day Volume Moving Average. This suggests some improvement is the market participation, and if volume should stay above the 40-day Volume Moving Average, the market sentiment is likely to improve.

As indicated by C, the MACD line crosses above the trigger line, and suggesting a positive signal for the KLCI. The positive signal suggests that the KLCI is regaining some strength, and the improvement of the KLCI is expected to carry on until the MACD histogram should form a Rounding Top.

In conclusion, the re-expansion of the Bollinger Bands suggests that the KLCI is breaking away from its consolidation, and with the KLCI above the Bollinger Middle Band, as well as the 14, 21, 31 EMA, the KLCI has a chance to resume its uptrend, and set to test the resistance.

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