FBM KLCI Technical Analysis, 07/07/2011, by Straits Index (M) Sdn Bhd

As indicated by A, the KLCI had its intra-day high reaching 159 5.87 points, but as profit taking takes place, the KLCI pullback slightly, and ended the day at 1590.24 points, down 1.1 points. However, as shown on the chart above, the 14, 21, 31 EMA is still serving as the dynamic support to the KLCI while the L1 uptrend remains intact.

As indicated by B, total market volume increased 14.4%, with volume above the 40-day Volume Moving Average. This suggests that the market is well-participated, and generally, will help lift the market sentiment as a whole.

As indicated by C, the Stochastic retreated slightly on Thursday, but managed to stay above 70%, in the short term bullish territory. This suggests that the KLCI short term movement is still positive.

In conclusion, the technical outlook for the KLCI is still positive. Since breaking new high, the KLCI has not really shown any major retreat, and therefore, we can't find any reliable resistance for the KLCI for now. However, as the KLCI is approaching a round number, it usually has some effect, as it creates attentions from investors. Therefore, we would like to state a temporary resistance at 1600.

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