As shown on the chart above, the 2ndboard index remains supported by the 108.75 level, and therefore, the 2ndboard bullish sentiment remains intact. Meanwhile, as indicated by A, the 14, 21, 31 EMA remains rising while continue serving as the dynamic support to the 2ndboard index. Therefore, as long as the 2ndboard index should stay above the rising dynamic support, the outlook for the 2ndboard index is still bullish biased. (Study A)

Volume for the 2ndboard market declined while barely staying above the 40-day VMA level. As mentioned repeatedly in our previous analysis, the volume must stay above the 40-day VMA level to sustain the bullish sentiment, or the uptrend would seem rather weak without sufficient inflow of fresh capital or market participation. (Study B)

As circled at C, the short term bullish signal of the Stochastic remains intact. Therefore, the market movement for the short term is still bullish biased, until the Stochastic falls below the 70% level. However, the Stochastic %D line is getting closer to the 90% level. If the %D line should break above the 90% level, it would be a short term over-bought signal, suggesting a risk for a short term technical correction. (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