On Wednesday, the 2nd board index rose 0.77 of a point after precisely supported by the 14, 21, 31 EMA dynamic support. If the 2nd board index can continue staying above the dynamic support, it may resume its uptrend and retest the 103.36 Fibonacci resistance. (Study A)

Although the 2nd board index has not shown a clear direction, volume increased 151.2% on Wednesday. The increase of volume suggests an increase of market participation and also capital inflow. If the volume could remain above the 40-day VMA level, the market sentiment for the 2nd board might improve, and chances for the 2nd board in testing the 103.36 resistance would be higher. (Study B)

As indicated by C, %K broke above the 70% level on Wednesday and triggered an unconfirmed short term bullish region. If the %D should break above the 70% level, it would confirm the %K signal and the market movement for the 2nd board index would turn from neutral to bullish. (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