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Monday, September 10, 2012

Technical Analysis : FBMKLCI 10-09-2012 / 富时大马综合指数 2012-09-10

FBM KLCI 10 Sept 2012
As indicated by A, the FBM KLCI had its early gains up to 4.64 points, but due to the strong selling pressure in blue chips, the KLCI was pulled down, thus unable to break above the 1625 level, closing at 1621.04 points, downed 3.51 points. Therefore, the immediate resistance for the KLCI is at 1625 while the 14, 21, 31 EMA is serving as the dynamic resistance. Next support is at 1600 psychological level.
As indicated by B, total market volume fell 23.81%, with volume clearly below the 40-day Volume Moving Average. This suggests that the market is quiet, as investors are unwilling to take up new positions. Generally, it is normal to have lower volume when the market in a whole is falling, but of course, without sufficient participation, the market is less likely to pick up its strength.
As circled at C, the Stochastic remains below 30%, despite rebounding from 0% last week. This suggests that the short-term movement of the KLCI is negative.
In conclusion, after falling below the 14, 21, 31 EMA, the uptrend of the KLCI was temporary interrupted. Although the KLCI pulled back and rebounded a little after its short-term over-sold condition last week, the strong selling pressure is preventing the KLCI from rising further. Nevertheless, we have yet to see the formation of a downtrend.
富时大马综合指数 2012-09-10

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