As indicated by A, the KLCI fell 12.05 points or 0.78% on Monday, breaking below the 14, 21, 31 EMA. Resistance for the KLCI is at 1537.77 WinChart Automatic Fibonacci Retracement while the support is at 1525.67 WinChart Automatic Fibonacci Retracement.

As indicated by B, total market volume inched up 0.15%, and as a result, volume stays below the 40-day Volume Moving Average. This shows that the market is still lightly participated, and the investors confidence is still low.

As indicated by C, the Stochastic fell below 70% and 50% respectively, ended the short term bullish biased signal. However, since the Stochastic has not broken below 30%, there is no short term bearish biased signal yet.

In conclusion, the KLCI remains in a consolidating mood, despite breaking below the 40-day Volume Moving Average. The KLCI has not formed a downtrend, not until it shows a Lower-high or break below the 1500 psychological level.

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