As shown on the chart above, the Bollinger Bands contracted 48%, and this suggests that the KLCI is still consolidating. The consolidating is expected to carry on until the Bollinger Bands should re-expands.

As indicated by B, total market volume fell 10.66%, but it is still above the 40-day Volume Moving Average, and this suggests that the market is still relatively active, and the market sentiment as a whole is still positive.

As indicated by C, the Stochastic fell slightly, but still remained above the 70% level, in the short term bullish territory. Technically, if the Stochastic should stay above 70%, it suggests that the market movement for the short term is still positive.

In conclusion, the KLCI is still consolidating as suggested by the Bollinger Bands, and the consolidation is expected to continue until the Bollinger Bands should re-expand. By then, we shall be able to determine the new direction of the KLCI by the relative positive of the KLCI above or below the Bollinger Middle Band.

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