As indicated by A, the KLCI was resisted by the 14, 21, 31 EMA dynamic resistance as well as the 1400 psychological resistance level. The KLCI loss 19.61 or 1.41%. Support for the KLCI remains at 1310.

As indicated by B, total market volume fell 42.56%, with volume clearly below the 40-day volume moving average. This suggests that the market is indeed very quiet, and this also implies that investors are still not feeling confident about the market.

As indicated by C, the Stochastic retreated slightly on Monday, and currently still showing a technical rebound signal for the KLCI. If the Stochastic should later break below 30%, it would be a signal suggesting a bearish biased movement for the KLCI.

In conclusion, other than resisted by the 14, 21, 31 EMA dynamic as well as the 1400 psychological level, the KLCI also formed lower-highs on Monday, as this suggests that the downtrend of the KLCI is still intact, and the technical outlook for the KLCI remains negative.

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