Straits Index (M) Sdn Bhd
WinChart Technical Analysis
Daily Market Analysis
Send to a Friend Composite Index 17/01/2011
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As indicated by A, the FBM KLCI gained 4.6 points to close at 1574.49 points, making yet another historical new high. Support for the KLCI is at 1552.66 while the resistance is at 1576.95. As shown on the chart above, the Bollinger Bands contracted 32%, and this suggests that the KLCI is still consolidating, until the re-expansion of the Bollinger Bands.

As indicated by B, total market volume fell 11.05%, but remain above the 40-day Volume Moving Average. This shows that the market is still active, while investors' confidence is still on the positive side.

As indicated by C, the Stochastic breaks above 90%, and this suggests that the short term movement of the KLCI is strong, but getting slightly over-heated. Nevertheless, with the Stochastic above 70%, the short term market movement for the KLCI is expected to be positive.

In conclusion, the KLCI is still consolidating, with positive technical outlook. At the same time, the long term view of the KLCI remains positive as the 14, 21, 31 EMA is still serving as the dynamic support. If the Bollinger Bands should re-expand with the KLCI above the Bollinger Middle Band, more upside movement for the KLCI is likely.

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