ZLBT looks at the week ahead >>> The FKLI

Weekly Technicals To Keep Bulls Rangebound
For the week ended on the 25th of March, 2011, the FKLI rebounded a total of 18.5 points, with a weekly high of 1518.5 and a weekly low of 1501.5 last Monday, total market volume traded was 26224 contracts versus 40310 previous week.

Weekly Chart : The FKLI Spot once hit 1501.0 but remain above the1500 psychological support amid negative impact from the radiation fallouts in Japan and Arabs uprisings in the Middle East & North Africa. he KLCI is still resisted 1530.5 & 1536.0 weekly resistance. The technical outlook for the FKLI uptrend remains positive in tandem with the cash market. The 1500 therefroe remains as an important support.
Bollinger Bands: The Bollinger Bands is basically not showing any signal right now, for the expansion was rather unpersuasive. Meanwhile, the FKLI closed above the Bollinger Middle Band, and as long as the FKLI stays above the Bollinger Middle Band, the immediate technical outlook for the FKLI shall remains optimistically positive.
MACD: The FKLI weekly MACD histogram is still in Rond Bottom formation now, but with the MACD line above the zero level, it suggests that the mid to longer term view of the FKLI is now on the postive side until the weekly MACD goes below the trigger or zero line.
RSI: After breaking above 50%, the weekly RSI stays mostly around but above the 50%, and therefore, unable to show any significant signals. It suggests that the FKLI mid term strength is at neutral.
Stochastic: Last week, the Stochastic still remains below 30%. This is the 3rd week the RSI have failed to breakaway from the "weak zone," leaving the short term outlook bearish. If the Stochastic could break above 30% into the 50% level it would be a short term neutral signal for the weekly FKLI. Until the weekly FKLI stochastic enters the 50% territory, keep bullishness at the back of your mind.

General Outlook for week ahead: Secondary indicators are showing conflicting signals, but Primary indicators still suggests neutral/weakness for the FKLI. Nevertheless, with latest weekly volume being way below previous week, we could assume that buyers are less aggresive and reluctant to take up new Long positions, and this implies that the market sentiments and future trader's confidence are neutral at best.

Nevertheless the price & volume negative divergence does not augurs well for the coming weeks and if there is no improvement in follow through buying, the FKLI will probably stay sideway or slightly downside bias.

HAPPY TRADING & GOODLUCK2ALL