The 2nd board index retreated after advancing for 5 consecutive days. On Tuesday, the 2ndboard closed at 110.18 points, down 1.35 of a points. As indicated by A, the immediate support for the 2ndboard is the 108.75 level, followed by the rising dynamic support of the 14, 21, 31 EMA. If the 2ndboard index should rebound from the rising dynamic support, the uptrend would resume. (Study A)

Volume for the 2ndboard market on Tuesday declined 16.9%, with volume barely staying at the 40-day VMA level. From a technical analysis stand point, it is generally considered normal to see volume decline during a technical correction. However, if the 2ndboard index should resume its uptrend, volume must increase significantly while continue remains above the 40-day VMA level. (Study B)

As circled at C, both the Stochastic %K fell marginally below the 70% level, while the %D line is still above the 70% level. Therefore, the Stochastic is still showing a short term bullish signal and the market movement for the short term is basically still bullish biased, until the Stochastic falls below the 70% level. (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