Despite an attempt in breaking the 108.75 resistance, the 2nd board remains resisted at the 108.75 level. Therefore, the 2nd board index is still in its consolidation. Meanwhile, as indicated by A, the 14, 21, 31 EMA is still serving as the dynamic support to the 2nd board index. Other supports are found at 104.6 points as well as the 98.5 points.

Volume for the 2ndboard market remains below the 40-day VMA level, suggesting that the 2ndboard is still lightly participated as it seems like investors are still staying on the sideline. Nevertheless, the relatively lower volume during a consolidation or a correction is usually normal. However, if the 2ndboard should break above the 108.75 resistance level, volume must increase significantly and maintain above the 40-day VMA level in order to sustain the break out. (Study B)

On Thursday, the Stochastic %D line falls below the 90% level, suggesting a short term technical correction signal. However, the Stochastic is still above the 70% level, which is still the short term bullish region. Therefore, the market movement for the short term is still bullish 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