TECHNICAL ANALYSIS >>> FBM KLCI 06 Oct 2010

FBM KLCI 06 Oct 2010

As indicated by A, despite breaking above the 1479.59 level briefly, the KLCI failed to stay above the 1479.59 level, and this makes the 1479.59 still the immediate resistance for the KLCI, while the support remains at 1436 followed by 1424 Fibonacci line.

As shown on the chart above, the Bollinger Bands expanded 8%, with the KLCI still above the Bollinger Middle Band, and the immediate technical outlook for the KLCI is still on the positive side.

As indicated by B, total market volume declined 3.1%, with volume barely staying above the 40-day Volume moving average line, but generally, the market participation is still 'sufficient', thus the overall market sentiment is still positive.

As indicated by C, the Stochastic stays above 70%, in the short term bullish region, suggesting that the short term movement of the KLCI is still positive.

Overall, the uptrend of the KLCI remains intact, but the break out on Wednesday was not valid as the KLCI failed to stay above 1480. Nevertheless, immediate technical outlook for the KLCI is still positive.

HAPPY TRADING