Straits Index (M) Sdn Bhd
WinChart Technical Analysis
Daily Market Analysis
Send to a Friend Composite Index 17/03/2011
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As indicated by A, the FBM KLCI had its intra-day low touching 1480.27 points, but as it was supported by the 1474~1480 support, the KLCI rebounded slightly to regain most of its daily losses, closing only 0.35 of a point lower. However, with the KLCI below the 14, 21, 31 EMA dynamic resistance, the technical outlook for the KLCI remains weak.

Meanwhile, the Bollinger Bands expanded 4%, and since the KLCI is still below the Bollinger Middle Band, the immediate technical outlook is still on the negative side.

As indicated by B, total market volume fell 1%, while remains further below the 40-day Volume Moving Average. This suggests that the market is still inactive, and therefore, the KLCI is not likely to pick up any strength right now.

As circled at C, after breaking above the 30% by margin, the Stochastic failed to climb further. Therefore, the break out signal was rather insignificant. Technical the Stochastic has to break above 50% then 70%, in order to show a short term bullish signal for the KLCI.

In short, with the support of 1474~1480 still intact, it helps to keep the KLCI from getting worse, given that the technical outlook is already on the lower side. However, due to low market participation, the KLCI is unlikely to regain its strength for now, and more likely, extending its sideways consolidation.

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