Meanwhile, the KLCI is now below the 14, 21, 31 EMA, and the technical outlook is gradually turning to negative. Nevertheless, the KLCI might be forming a Triangular pattern of consolidation, thus the KLCI could prolong its consolidation above 1487.

As indicated by B, total market volume fell 8.2%, with volume below the 40-day Volume Moving Average. Again, this shows that the market was lightly participated, and this also imply that the investors confident is relatively lower.

As indicated by C, the Stochastic remains below 30%, in the short term bearish territory. If the Stochastic should stay below 30%, the market movement for the short term is expected to stay weak.

Despite negative technical reading, the KLCI only fell 0.27 of a point, and this is still too early to call for any bearish trend for the KLCI. The KLCI is expected to consolidate further. Nevertheless, technically, the KLCI would have to return to above the 14, 21, 31 EMA, to regain its positive technical outlook.

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