Although the KLCI made another multi-year new high, the 2nd board index ended mixed. As shown by the arrow A, the 2nd board index retested the 14 days EMA dynamic support on Friday, ended 0.32 of a point to 96.46 points.

At the moment, the 14, 21, 31 EMA is still serving as the dynamic support to the 2nd board index, and provided that the 2nd board index could maintain above the rising dynamic support, the uptrend is still intact. However, in order to sustain the uptrend, the 2nd board must first break above the 97.69 resistance and this should come with an increase of volume above the 40 days VMA level.

Volume for the 2nd board market on Friday was lower, this is usually seen as a normal sign for the 2nd board was still consolidating. However, if the 2nd board index was to rebound and resume its uptrend, we must have the volume standing above the 40 days VMA level. (Study B)

As shown by the C circle, Stochastic %D fell below the 70% level on Friday, confirming the %K signal. Therefore, based on the Stochastic reading, the short-term market movement for the 2nd board index is currently at neutral. (Study C)

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 1997-2007 Straits Index (M) Sdn Bhd All rights reserved