Straits Index (M) Sdn Bhd
WinChart Technical Analysis
Daily Market Analysis
Send to a Friend Composite Index 18/02/2011
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As indicated by A, the FBM KLCI rebounded on Friday but it is testing the Bollinger Middle Band, closing at 1517.56 points, up 9 points or 0.6%. Immediate support for the KLCI is now at 1513 WinChart Automatic Fibonacci Retracement while the resistance is at 1525.

As shown on the chart above, the Bollinger Bands stopped expanding, and the consolidation of the KLCI is likely to continue. However, the immediate technical outlook for the KLCI remains on the negative side as the KLCI is still below the Bollinger Middle Band.

As indicated by B, total market volume fell 13.75%, with volume below the 40-day Volume Moving Average. This suggests that the market is getting quiet, while investors confidence is also getting lower as investors choose to stay on the sidelines.

As indicated by C, the Stochastic continued to rise and breaks above 30%, triggered a technical rebound signal for the KLCI. But the Stochastic has to break above 70%, in order to suggests a short term bullish signal.

Despite the technical rebound of the KLCI, the downtrend remains intact, and the technical outlook is still negative, given that the KLCI is still below the T1 line as well as the 14, 21, 31 EMA.

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