As indicated by A, the KLCI was supported by the 14, 21, 31 EMA on Friday, gaining 5.3 points or 0.3%. The 14, 21, 31 EMA is still serving as the dynamic support to the KLCI while the resistance remains unchanged at 1566.

As indicated by B, total market volume increased 12.3%, but still below the 40-day Volume Moving Average. This shows that the market is quiet, as investors are still not feeling confident about the local market. Meanwhile, the lower volume also suggests that inflow of fresh capital is too.

As indicated by C, the Stochastic ticked up on Friday, but not yet breaking above 70%. If the Stochastic could break above 70%, it would be a short term bullish signal for the KLCI.

In conclusion, despite the KLCI not able to take out the 1566 resistance, the technical outlook remains positive, as long as the KLCI could stay above 14, 21, 31 EMA or the L1 line. Of course, ideally, if volume could increased and stay above the 40-day Volume Moving Average, it would help lift the market sentiment and the KLCI would be more likely to re-test the 1566 resistance.

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