As indicated by A, the FBM KLCI failed to break above the 14, 21, 31 EMA, and on Friday, losing 3.58 points or 0.23%. Since the KLCI is still staying below the 14, 21, 31 EMA, this suggests that the technical outlook is still on the negative side. Resistance for the KLCI is at 1537.77 WinChart Automatic Fibonacci Retracement while the support is at 1513.56 WinChart Automatic Fibonacci Retracement.

As indicated by B, total market volume fell 15.68%, with volume below the 40-day Volume Moving Average. This suggests that the market is lightly participated, and without sufficient inflow of fresh capital, the KLCI or the market as a whole is less likely to regain its strength.

As circled at C, the Stochastic remains below 30%, in the short term bearish territory. Technically, if the Stochastic should stay below 30%, the short term movement of the KLCI is expected to be weak.

In short, the short term weakness of the KLCI remains intact, with the 14, 21, 31 EMA serving as the dynamic resistance. However, despite the short term weakness, the KLCI has not formed a downtrend yet.

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