As indicated by A, the KLCI had an intra-day high of 1555.49 but right before the market close, the KLCI started falling, and losing 0.9% at the close. However, the KLCI remains above the 14, 21, 31 EMA dynamic support as well as the L1 ascending line.

As indicated by B, total market volume fell 18.2%, with volume still staying below the 40-day Volume Moving Average. This suggests that the market is still quiet, and at the same time, implying that investors are not feeling confident about the local market as inflow of fresh capital is low.

As indicated by C, the Stochastic is still falling, breaking below 50%. Therefore, no bullish signal for the KLCI yet. In fact, if the Stochastic should break below 30%, it would be a short term bearish signal for the KLCI.

In conclusion, the KLCI is now consolidating in a sideways manner. Although it has not broken above the resistance, the technical outlook shall remain positive, unless the KLCI should fall below the 14, 21, 31 EMA or the L1 line. As for whether the KLCI would form a downtrend, it will be too soon to call for now, unless the KLCI forms a Lower-High.

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