Straits Index (M) Sdn Bhd
WinChart Technical Analysis
Daily Market Analysis
Send to a Friend Composite Index 01/04/2011
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As indicated by A, the KLCI gap up again on Friday, gaining another 10.25 points or 0.66%, and breaks above the 1552 WinChart Automatic Fibonacci Retracement resistance. Next resistance for the KLCI is at 1576 all time high, while the support is at 1537 WinChart Automatic Fibonacci Retracement as well as the 14, 21, 31 EMA dynamic support.

As indicated by B, total market volume declined 22.1%, with volume testing the 40-day Volume Moving Average level. If volume should fall below the 40-day Volume Moving Average, it suggests that the market is back to quiet, and this would affect the sustainability of the recent positive movement.

As indicated by C, the Stochastic stays above 90%, this suggests that the short term movement of the KLCI is indeed strong, but it is over-heated. Therefore, a technical correction or a pullback is likely to take place. But with the Stochastic still above 70%, the short term bullish signal remains intact.

In conclusion, the KLCI has gained 39.83 points or 2.63% in a week, and the technical outlook is still positive, with the KLCI above the 14, 21, 31 EMA. However, short term movement of the KLCI is now over-heated, thus a pullback is likely.

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