The 2nd board index corrected 1.16 points or 1.1% on Wednesday, closing at 101.06 points. As shown on the chart above, the 103.36 Fibonacci Retracement remained as the resistance to the 2nd board index. However, as indicated by A, the 2nd board index was precisely supported by the 14, 21, 31 EMA, which is still the dynamic support to the 2nd board index. If the 2nd board index can rebound from the the EMA dynamic support, there is a chance for it to retest the 103.36 resistance. (Study A)

Volume for the 2nd board market declined 19.4%, while staying above the 40-day VMA level. From the technical analysis point of view, the decline of volume during a correction or a consolidation is rather normal. However, if the 2nd board index was to rebound and resume its uptrend, volume must regain and staying above the 40-day VMA level to sustain the bullish sentiment.

As indicated by C, Stochastic %K line fell below the 30% level marginally, and triggered an unconfirmed short-term bearish signal. If the %D line fell below 30% level, it shall confirm the %K signal. Currently, Stochastic is still showing a short-term neutral signal. (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