FBM KLCI 15 March 2011
Situation of the nuclear power plant meltdown continue to dampen the market condition across Asia, and Malaysian market is no exception. However, as indicated by A, the KLCI managed to stay above the 1474~1480 support. The 14, 21, 31 EMA still serving as the dynamic resistance to the KLCI, and the other resistance is at 1513.
Meanwhile, the Bollinger Bands expanded 9%, with the KLCI below the Bollinger Middle Band. Therefore, the immediate technical outlook for the KLCI is still on the negative side.
As indicated by B, total market volume increased 81%, but volume is still below the 40-day Volume Moving Average. Although volume increased 81%, there were 812 counters end on red, while only 126 gainers. Therefore, the increased of volume suggests that the selling pressure is still dominant.
In conclusion, the sell down of the KLCI, by comparing to most Asian markets, was considered mild, but this does not change the negative technical outlook of the KLCI, for it is still staying below the 14, 21, 31 EMA as well as the Bollinger Middle Band. If the KLCI should break below 1474, it would be making an near 6 months new low.