The 2nd board index continued its consolidation on Friday, closing 0.08 of a point lower to 107.30 points. As shown on the chart above, the 108.75 remains an important resistance level for it represents the memory of investors involved. This shows that the reliability of chart pattern analysis, for only the chart pattern can outline the emotion of the market.

Nevertheless, the 14, 21, 31 EMA, as indicated by A, is still serving as the dynamic support to the 2nd board index, and other supports are found at 104.6 as well as 98.5 levels.

Although the volume for the 2ndboard market increased slightly, the overall market participation for the 2ndboard market is still low. Therefore, without sufficient participation and sufficient inflow of capital, the 2ndboard index is still weak in breaking the 108.75 resistance line. (Study B)

As circled at C, the Stochastic is still showing a short term bullish signal with the Stochastic remains above the 70% level. Therefore, this is viewed as as temporary correction signal of a possible uptrend. (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