Ever since the 2ndboard index touched the 108.75 resistance, it has been consolidating in a sideways movement. As of Tuesday, the 2ndboard index remains in its consolidation. As indicated by A, the 14, 21, 31 EMA is still serving as the dynamic support to the 2ndboard index. If the 2ndboard should rebound from the dynamic support, it is likely to resume the uptrend. (Study A)

On Tuesday, the volume of the 2ndboard market declined 35.5% and stayed below the 40-day VMA level. This suggests that the participation of the 2ndboard market is indeed low, and therefore, without the sufficient market participation, which also implies the inflow of fresh capital, the 2ndboard index is less likely to break above the 108.75 resistance. (Study B)

As indicated by C, the MACD histogram remains falling, suggesting the weakening of the MACD bullish signal. Meanwhile, the MACD histogram is still showing a rounding top signal suggesting a consolidation signal. If the MACD histogram should rise and forms a rounding bottom, it would suggests an end to the consolidation. (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