Straits Index (M) Sdn Bhd
WinChart Technical Analysis
Daily Market Analysis
Send to a Friend Composite Index 16/03/2011
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As indicated by A, the FBM KLCI managed to stay above its support of 1474~1480, and rebounded 8.30 points or 0.56% on Wednesday. However, the technical outlook for the KLCI remains weak as the KLCI is still being resisted by the 14, 21, 31 EMA dynamic resistance.

Meanwhile, the Bollinger Bands expanded 5%, with the KLCI below the Bollinger Middle Band, thus the immediate technical outlook for the KLCI is negative.

As indicated by B, total market volume fell 35.87%, with volume below the 40-day Volume Moving Average. This suggests that the market is indeed quiet, coupled with the worries of the nuclear meltdown in Japan, it seems like investors are reluctant to take up new position at this moment. In short, without sufficient inflow of capital, the market is less likely to regain its strength.

As circled at C, the Stochastic rebounded and now testing 30%. If the Stochastic could break away from the 30% level, it would break away from the short term bearish territory.

In conclusion, the technical outlook for the KLCI remains weak despite the support at 1474~1480.

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