Meanwhile, if the Bollinger Bands could continue to expand, while the KLCI stays above the Bollinger Middle Band, more upside movement is likely for the KLCI.

As indicated by B, total market volume increased 10.40%, but volume is still below the 40-day Volume Moving Average. Therefore, this shows that the market is indeed quiet, and this also imply that investors confidence is relatively low too.

As indicated by C, the Stochastic stays above 70%, in the short term bullish territory. Therefore, as long as the Stochastic could stay above 70%, this suggests that the short term movement of the KLCI is still bullish bias.

In conclusion, the KLCI is breaking above the T1 and T2 triangle, and set to test the 1532 resistance. However, market volume remains low, and therefore, the sustainability of the positive KLCI movement is questionable. Nevertheless, immediate technical outlook is positive, and the KLCI has a chance to break this historical new high.

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