Meanwhile, the Bollinger Bands is still expanding, but at a minimal rate or 1%. This suggests that the KLCI is likely to continue its consolidation. The KLCI direction is likely to be unclear until the re-expansion of the Bollinger Bands.

As indicated by B, total market volume fell 7.48%, with volume below the 40-day Volume Moving Average. Generally, when the market should consolidate, lower volume is normal. But on the other hand, without sufficient market participation or the inflow of fresh capital, the KLCI is less likely to regain its strength.

As indicated by C, the Stochastic is still rising, breaking above 30% by margin. This suggests a short term technical rebound signal for the KLCI, and the short term movement of the KLCI is not yet resume to bullish, unless the Stochastic could break above 70%.

Despite the rebound, the KLCI is still below the 14, 21, 31 EMA, as well as the Bollinger Middle Band. Therefore, the technical outlook for the KLCI is still weak.

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