Straits Index (M) Sdn Bhd
WinChart Technical Analysis
Daily Market Analysis
Send to a Friend Composite Index 28/12/2010
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As indicated by A, the KLCI tested the T1 descending line on Tuesday, but it has failed to break out from the T1 line, thus the Triangular consolidating pattern remains intact. The KLCI gained 5.72 points or 0.38% to close at 1517.44 points. Other than the T1 line, resistance is at 1532 while the support is at 1500 followed by the T2 line.

As shown on the chart above, the Bollinger Bands expanded 9%, with the KLCI above the Bollinger Middle Band. This is a positive signal for the KLCI ,and if the Bollinger Bands should continue to expand, while the KLCI stays above the Bollinger Middle Band, more upside movement for the KLCI is likely.

As indicated by B, total market volume increased 6.42%, but still below the 40-day Volume Moving Average. Overall market is relatively quiet, and generally, the rally is harder to sustain if volume should stay low.

As indicated by C, the Stochastic breaks above 70%, re-entering the short term bullish territory. If the Stochastic should stay above 70%, the short term movement for the KLCI is expected to stay positive.

For the moment, the KLCI has not broken away from its Triangle Consolidation pattern. Nevertheless, if the KLCI could break above the T1 line with positive Bollinger Bands signal, the technical outlook for the KLCI is expected to stay positive.

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