The 2nd board index ended lower on Thursday, losing 1.25 points to 99.55 points. As indicated by A, the 2nd board index remains resisted by the falling 14, 21, 31 EMA, and therefore, the 14, 21, 31 EMA shall serve as the dynamic resistance to the 2nd board index.

Provided that the 2nd board index is staying below the dynamic resistance, the outlook for the 2nd board index is likely to stay bearish biased. In addition, since the 2nd board index has broken below the 100.02 Fibonacci Retracement support, the next support is now at 97.32 points.

Volume for the 2nd board market increased 50% on Thursday. However, the increase of volume resulting a decline of the 2nd board index suggests that an increase of selling pressure. (Study B)

The Stochastic %K falls below the 30% level again with the %D line nearly breaking below the 30% level. Therefore, if the Stochastic should remain below the 30% level, the market movement for the short term will be bearish biased. (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