As shown on the chart above, the Bollinger Bands contracted 8%, and this suggests that the KLCI is still consolidating. With the KLCI above the Bollinger Middle Band, the immediate technical outlook for the KLCI is positive.

As indicated by B, total market volume fell 8.61%, but firmly above the 40-day Volume Moving Average. The market is still actively participated, with investor confidence staying positive too, and as a result, as long as volume could stay above the 40-day Volume Moving Average, the positive market sentiment is likely to remain intact.

As indicated by C, the Stochastic rebounded slightly, while staying above 70%, in the short term bullish territory. Therefore, this suggests that the short term movement of the KLCI is still bullish bias, until the Stochastic should break below 70%.

In conclusion, the KLCI is still consolidating with positive technical outlook. If the Bollinger Bands should re-expand with the KLCI staying above the Bollinger Middle Band, the more upside movement is expected for the KLCI.

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