After consolidating for a week, the 2nd board index started declining on Monday. As indicated by A, the Bollinger Bands Width started expanding with the 2nd board index staying below the Bollinger Middle Band. Therefore, this suggests a bearish movement of the 2nd board index. If the Bollinger Bands Width should continue expanding with the 2nd board index staying below the Bollinger Middle Band, the bearish movement shall continue. Nevertheless, 101.09 Fibonacci Retracement level is the next support for the 2nd board index.

As indicated by B, volume for the 2nd board market is still staying below the 40-day VMA level. Therefore, this suggests that the participation of the 2nd board market is still insufficient. In other words, the lower volume suggests a lack of fresh capital inflow, thus the sentiment for the 2nd board market is likely to remains weak.

As circled by C, the Stochastic %D line falls marginally below the 30% level on Monday. If the Stochastic %D should stay below the 30% level, it would confirm the %K line signal, and the market movement for the short term is at bearish biased.

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