Straits Index (M) Sdn Bhd
WinChart Technical Analysis
Daily Market Analysis
Send to a Friend Composite Index 28/04/2011
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As indicated by A, the FBM KLCI rose 5.39 points or 0.35% on Thursday, breaking above the 14, 21, 31 EMA, and forming a Higher-Low. With the KLCI above the 14, 21, 31 EMA, the technical outlook is now turning to positive. The KLCI is expected to test the immediate resistance at 1537.77 WinChart Automatic Fibonacci Retracement while the support is at 1525.67 followed by 1513.56.

Despite the KLCI is showing a minor sign of improving, total market volume remains below the 40-day Volume Moving Average. Not only that it did not increase, in fact, volume fell 19.22%. The lower volume implies that investors are still not regaining their confidence with the market, thus, this is a set back for the market attempt to regain its strength.

As indicated by C, despite the low market volume, the Stochastic breaks above 70%, entering the short term bullish territory. Technically, with the Stochastic staying above 70%, the KLCI short term movement is likely to stay positive.

In conclusion, despite the KLCI is showing a sign of improvement, the lack of volume remains a major set back. Nevertheless, as long as the KLCI should stay above the 14, 21 ,31 EMA, the technical outlook is likely to be positive.

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