As indicated by A, the FBM KLCI opened above the 14, 21, 31 EMA, but it failed to sustain its gains, and at the close, losing 4.69 points or 0.31%, at 1526.33 points, and failed to stay above the 14, 21, 31 EMA.

Meanwhile, the Bollinger Bands has not expanded clearly, thus this suggests that the KLCI is still in a consolidation mood. Nevertheless, resistance for the KLCI is at 1537.77 WinChart Automatic Fibonacci Retracement while the support is at 1513.56 and 1498 or 1500 level.

As indicated by B, total market volume increased 8%, with volume breaking above the 40-day Volume Moving Average by margin. If volume should stay above the 40-day Volume Moving Average, it means that the market participation is at a 'healthy' level, which usually implies an improvement of the market sentiment.

As circled at C, the Stochastic retreated, and back below 30%, and if the Stochastic should stay below 30%, this suggests that the market movement for the short term is likely to be weak.

In short, the KLCI has not formed any new trend. Readers could monitor if the KLCI should later form a higher-low (early characteristic of an uptrend), or a lower-high (an early sign of weakness.)

Find this analysis useful? Why not share it with others? Click Here to send this to a friend

Straits Index (M) Sdn Bhd
No. 16, Jalan LP 1A / 5, Lestari Perdana,
43300 Seri Kembangan, Selangor
Hotline: (03) 8941 6828  (5 lines)   Fax: (03) 8941 9828
Email: info@straitsindex.com
© Copyright 1997-2010 Straits Index (M) Sdn Bhd All rights reserved