As indicated by A, the KLCI gained 5 points on Wednesday, with the KLCI above the 14, 21, 31 EMA. Resistance for the KLCI remains at 1552.34 followed by the 1566 recent high, while the support is at 1525.4 WinChart Automatic Fibonacci Retracement.

As indicated by B, total market volume gained 22.4%, but still below the 40-day Volume Moving Average. This suggests that the market participation is still low, and implying that investors' confidence about the local market is not yet recovered.

As circled at C, the Stochastic stays above 70%, suggesting that the short term bullish biased signal for the KLCI remains intact. Technically, this implies that the short term movement of the KLCI is still improving, until the Stochastic should break below 70%.

In short, with the KLCI above the 14, 21, 31 EMA, the technical outlook for the KLCI is on the positive side. However, since the KLCI is not yet forming a higher-low, we don't see a sign of an uptrend forming. It is possible that the KLCI is still only consolidating.

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