Composite Index 06/01/2012

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On Friday, the KLCI ended flat, losing only 0.3 of a point to close at 1514.13 points. As indicated by A, the 14, 21, 31 EMA as well as the L1 uptrend is still serving as the dynamic support to the KLCI, while the resistance remains unchanged at 1530.

As indicated by B, total market volume fell 12.1%, with volume below the 40-day volume moving average. This suggests that the market is still lightly participated, as it implies that investors are still not feeling very confident about the market.

As indicated by C, the Stochastic failed to stay above 70%. If the Stochastic should stay near 50% level, it suggests a short term neutral signal for the KLCI.

In conclusion, with the KLCI staying above the 14, 21, 31 EMA as well as the L1 uptrend, the uptrend remains intact, and the technical outlook for the KLCI is still positive.

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