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Saturday, November 12, 2011

Technical Analysis >>> FBMKLCI Weekly

FBM KLCI Weekly Technical Analysis 08 - 11 Nov 2011
For the week ended on the 11th of November, 2011, the KLCI fell a total of 8.76 points or 0.59% with its weekly high of 1490.74 point and the weekly low of 1466.25 points. Total market volume was 9,203,058,000 shares, up 12.95%.
Main Chart:
The KLCI is still testing 1488 Fibonacci, while staying above the 14, 21, 31 EMA dynamic support, and this suggest that the short term uptrend of the KLCI is still intact. Resistance for the KLCI remains at 1488 while other than the 14, 21, 31 EMA dynamic support, the 1453 is the next support for the KLC.

Bollinger Bands:
The Bollinger Bands was contracting, with the KLCI below the Bollinger middle band marginally. The contraction of the Bollinger Bands suggests that the KLCI direction is unclear, and usually implies that the KLCI is consolidating.

As indicated by B, total market volume was strongly above the 40-day volume moving average. This shows that the market is well-participated. Generally, if volume should remains above the 40-day volume moving average, it would help sustain the improvement of the market sentiment.

Despite the KLCI staying in its short term uptrend, the MACD histogram is still falling, suggesting that the KLCI is losing some strength. Nevertheless, the MACD line also crossed the trigger line, suggesting that the KLCI is showing some weakness.

WinChart RSI:
The WinChart RSI is also falling, but not yet broken below 50%. This is a signal suggesting a neutral strength for the KLCI.

The Stochastic has fallen below 70%, ended the short term bullish signal. If the Stochastic should fall below 30%, it would be a short term bearish signal for the KLCI.

In Conclusion:
The KLCI short term uptrend is still intact, with its technical outlook remains positive. However, technical indicators are suggesting some weakness of the KLCI. Overall, the performance of the US and the European market still plays a major catalyst to the global market.

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