Straits Index (M) Sdn Bhd
WinChart Technical Analysis
Daily Market Analysis
Send to a Friend Composite Index 15/12/2010
We are an approved 
Securities Industry Development Corporation (SIDC)-CPE Training Provider.
the training and development arm of the Securities Commission Malaysia (SC). 
As indicated by A, the FBM KLCI ended slightly lower, but stopped declining at the Bollinger Middle Band. Coincidentally, this is also the level of the 14-day Exponential Moving Average line. The KLCI rebounded and regained some of its early loss, and as a result, the KLCI is still above the Bollinger Middle Band, as well as the 14, 21, 31 EMA.

In additional, the 1500 is also the support for the KLCI and the resistance is still at 1525 to 1532. Meanwhile, the Bollinger Bands stopped contracting, and this suggests that the KLCI is still consolidating in a sideways manner.

As indicated by B, total market volume fell 4.62%, with volume below the 40-day Volume Moving Average. This again suggests that the market is relatively quiet, and the investors confidence is not strong. Generally, with volume staying low, the broader market is less likely to pick up its strength.

As indicated by C, the Stochastic fell below 70% by margin. If the Stochastic should fail to return to above 70%, it would be an end to the short term bullish signal. If the Stochastic should break below 30%, it would be a short term bearish signal for the KLCI.

Technically, with the KLCI above the 14, 21, 31 EMA, the technical outlook for the KLCI shall remains positive, and the uptrend is unaffected yet. However, the lack of participation is still a major set back to the KLCI performance.

Find this analysis useful? Why not share it with others? Click Here to send this to a friend


1st Online Training In Malaysia
View the Online Training More Market Analysis Find out more about WinChart Upcoming Events

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