Straits Index (M) Sdn Bhd
WinChart Technical Analysis
Daily Market Analysis
Send to a Friend Composite Index 02/03/2011
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As indicated by A, the FBM KLCI opened lower on Wednesday, due to the over night losses in the US and European Markets. However, the KLCI managed to regain most of its losses, by losing only 2.96 points or 0.2%, closing at 1499.28 points. For now, the KLCI is testing the T1 downtrend line as well as the 1500 psychological resistance. Support for the KLCI is at 1480 followed by 1474 WinChart Automatic Fibonacci Retracement.

Meanwhile, the Bollinger Bands expanded a little, but it is still insignificant to show any signal. Nevertheless, with the KLCI still below the Bollinger Middle Band, the immediate technical outlook is still on the negative side.

As indicated by B, total market volume increased 22.01%, but volume remains below the 40-day Volume Moving Average. This shows that the market is still quiet, and the investors confidence in general is still low.

As indicated by C, the Stochastic failed to break above 70%, and therefore, there is no improvement signal for the KLCI short term movement just yet. If the Stochastic should break below 30% again, it would be a short term bearish signal for the KLCI.

In short, the downtrend channel of the KLCI remains intact, and further more, the 14, 21, 31 EMA is still serving as the dynamic resistance to the KLCI, thus the technical outlook is still weak.

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