On Wednesday, the 2ndboard index continued its consolidation, ended the day 0.51 of a point lower to 116.68 points. As shown on the chart above, the 118.93 points remains as the immediate resistance level, while the 14, 21, 31 EMA is still serving as the dynamic support to the 2ndboard index. If the 2ndboard index should rebound from the rising dynamic support, the uptrend would resume. (Study A)

Volume for the 2ndboard market on Wednesday increased 11.5% while remaining above the 40-day VMA level. If the 2ndboard index should rebound above the rising dynamic support with the volume still remains above the 40-day VMA level, the bullish market sentiment is likely to sustain. (Study B)

On Wednesday, the Stochastic %K falls slightly below the 70% level. If the Stochastic %D line should break below the 70% level, it would confirm the %K line signal and ends the short term bullish signal. But if the Stochastic %K should rebound and re-enter above the 70% level with the %D line still staying above the 70% level, the market movement for the short term remains 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