Straits Index (M) Sdn Bhd
Winchart Technical Analysis - Daily Market analysis
PDF Send to a Friend 2nd Board Index 09/01/2007
2nd Board Index Daily Technical Analysis 09/01/2007

On Tuesday, the 2nd board index tested the T1 dynamic resistance of the symmetrical triangle, ended the day 0.65 of a point higher to 93.06 points.(Study A) If the 2nd board index could break above the T1 successfully, the 14, 21, 31 EMA dynamic support shall continue serving as the rising dynamic support to the 2nd board index. If the 2nd board index failed to break out the symmetrical triangle, T2 shall be the dynamic support.

Although the 2nd board index tested its resistance at T1, volume, on the other hand, only increase 13.4% and failed to break above the 40 days VMA level. This suggested that the overall market participation of the 2nd board market was still relatively insufficient. Thus, if the 2nd board index broke out without a significant increase of volume, the break out would not be reliable. (Study B)

MACD histogram ticked higher on Tuesday suggested a continuation of the bullish signal. The bullish signal shall continue until the MACD histogram formed a rounding top, which would be the technical correction signal. (Study C)

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