Straits Index (M) Sdn Bhd
WinChart Technical Analysis
Daily Market Analysis
Send to a Friend Composite Index 03/06/2011
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As indicated by A, the FBM KLCI was trading at a narrow range on Friday, closing 1.81 points or 0.1%. Therefore, the immediate resistance for the KLCI remains at 1566 while the supports are at the 14, 21, 31 EMA dynamic support as well as the L1 ascending line.

As indicated by B, total market volume fell 18.8% on Friday, and as a result, volume is still below the 40-day Volume Moving Average. This shows that the market is indeed quiet. This suggests that investors are being cautious. Technically, volume has to stay above the 40-day Volume Moving Average in order to lift the market sentiment, especially when the KLCI is attempting to take out its resistance.

As circled at C, the Stochastic stays above 70% in the short term bullish territory. This suggests that the short term movement of the KLCI is still positive, until the Stochastic should break below 70%,

In conclusion, despite being resisted by the 1566, the immediate technical outlook for the KLCI is still positive, provided that the KLCI could stay above the 14, 21, 31 EMA or the L1 ascending line. However, the main concern is still the low market volume.

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