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Thursday, September 13, 2012

Technical Analysis : FBMKLCI12-09-2012 / 富时大马综合指数 2012-09-12

富时大马综合指数 2012-09-12
FBM KLCI 12 Sept 2012
On Wednesday, the KLCI had some early gains, but the strong selling pressure in blue chips pushes the KLCI lower, especially AIRASIA and UEMLAND. At the close, the KLCI fell 0.46 of a point to 1613.78 points. As indicated by A, the 14, 21, 31 EMA is serving as the dynamic resistance. Immediate resistance for the KLCI is at 1625 and the support is at 1600 mark.
As indicated by B, total market volume fell 16.3%, with volume below the 40-day Volume Moving Average. This shows that the market is indeed quiet, as investors are being very cautious, while reluctant to take up positions. Generally, without sufficient participation, the market as a whole is less likely to pick up its strength.
As circled at C, the Stochastic remains below 30%, in the short-term bearish territory. This suggests that the short-term movement of the KLCI is still on the weaker side. If the Stochastic should break above 30%, it would be a signal suggesting a technical rebound.
In conclusion, after precisely rebounding from 1600, the KLCI was fluctuating in a narrow range on Wednesday. However, the score board is showing some improvement with gainers outnumbering loser, 409 to 292. However, this minor improvement is not yet reflected in the KLCI performance. Nonetheless, it is still too early to call for any bearish or downtrend movement for the KLCI.

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