Winchart Technical Analysis -
Daily Market analysis
| Learn Technical Analysis and get your credit hours at the same time. WinChart Technical Analysis Training is Accredited by: | |||
 |
 |
||
As indicated by A, the Bollinger Bands Width continue to contract on Friday, and therefore, the 2nd board index consolidation continues, closing 0.16 of a points lower to 107.97 points. The contraction of the Bollinger Bands Width also suggests an unclear market direction as the 2nd board is preparing a new movement. When the Bollinger Bands Width re-open, it shall reveal the new direction, and the direction of the movement shall depend on the price level above or below the Bollinger Middle Band. Nevertheless, the 108.49 Fibonacci Retracement line is still the resistance for the 2nd board index.
Due to the festive holiday, volume for the 2nd board market also declined significantly. However, from a technical point of view, it is considered normal or healthy if the volume should decline during a consolidation or correction stage. If the 2nd board index should return its upward movement, volume must increase and remain above the 40-day VMA level in order to sustain the positive movement. (Study B)
As circled at C, the MACD histogram continue ticking lower, and therefore the rounding top remains in place. The rounding top suggests a weakening of the MACD bullish signal, thus a short term consolidation or correction. The correction is expect to continue until the MACD histogram forms a rounding bottom.
Find this analysis useful? Why not share it with others? Click Here to send this to a friend
 1st Online Training In Malaysia |
 |
 |
 |
| View the Online Training | More Market Analysis | Find out more about WinChart | Upcoming Events |
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