On Tuesday, the KLCI gained 3.29 points or 0.22% in the last minutes. As indicated by A, the KLCI is going to re-test the 14, 21, 31 EMA again.

Meanwhile, the Bollinger Bands is still contracting, and this suggests that the KLCI is still consolidating. However, the Bollinger Bands band width is now very narrow, thus it implies that the consolidation is near its end. Nevertheless, resistance for the KLCI remains at 1537.77 WinChart Automatic Fibonacci Retracement while the support is still at 1513.56 WinChart Automatic Fibonacci Retracement.

As indicated by B, total market volume was almost unchanged on Tuesday. As a result, volume remains below the 40-day Volume Moving Average. This means that the market is still quiet, and it also implies that investors confidence is also not strong, thus the market is less likely to pick up its strength, or likely to stay in a consolidating mood.

As indicated by C, the Stochastic is still rising after breaking above 30% on Monday. This suggests a short term improvement for the KLCI. If the Stochastic could break above 70%, it would be a short term bullish biased signal for the KLCI.

In conclusion, the KLCI consolidation remains intact, but with some improvement spotted in the Stochastic. Technically, the KLCI has to break above the 14, 21 ,31 EMA in order to bring its technical outlook to positive. Then, we shall look for other characteristics of improvements, like volume above the 40-day Volume Moving Average, and et cetera.

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