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Friday, January 8, 2010

TECHNICAL ANALYSIS >>> Composite Index 08/01/2010 / 综合指数 2010年 01月 08日

Composite Index 08/01/2010
As indicated by A, the FBM KLCI were mostly lower on Friday, but it ended with a gain of 1.56 points at the close. The resistance for the KLCI remains at 1300 level while the support is at 1265 Fibonacci Retracement.

As shown on the chart above, the Bollinger Bands contracted only 1%, and if the Bollinger Bands should continue to contract, the KLCI is likely to consolidate or to have its technical correction. If the KLCI should have a technical correction, the Bollinger Middle Band shall be its first target.

As indicated by B, total market volume continue to decline, falling 29.7%, but it is still above the 40-day VMA level. The lower volume during a consolidation is rather healthy, for investors take taking profit while others are waiting on the sidelines cautiously.
Generally, with volume above the 40-day VMA level, the market is well-participated, and it is likely to help sustaining the positive market sentiment.

As circled at C, the Stochastic rebounded slightly while still staying above the 70% level, therefore, this suggests that the market movement for the short term is still bullish bias.

Basically, a technical correction or a consolidation for the KLCI is rather healthy, and the first target of the correction is usually the Bollinger Middle Band. If the KLCI should rebound from the Bollinger Middle Band, there is a chance that the KLCI to resume its current uptrend. Other wise, the KLCI might turn weaker.

综合指数 2010年 01月 08日

如图所示,布林频带(Bollinger Bands)打开的幅度只有1%,所以综指的涨势亦迅速的缓慢下来,若布林频带接下来开始收窄的话,那将是综指形成技术调整的讯号,届时布林中频带(Bollinger Middle Band)将是综指调整的第一目标,也是综指的动态支持线。




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