ZLBT Chats

Saturday, November 3, 2012

FBMKLCI Technical Analysis : Change In Polarity Principles >>> When Support Turn Resistance

FBMKLCI 02 Nov 2012
Despite the US markets rebounded strongly, and the Asian markets mostly higher, the KLCI started falling right at the start of Friday's trading. Selling were mostly stronger on Friday, especially on Telco, in which Axiata, TM, Digi, contributed most of the losses of the KLCI. At the close, the KLCI fell 19.56 points, a biggest fall since 20th of September this year, to close at 1656.13 points. As indicated by A, the KLCI fell below 1668, and even below the 31-day EMA dynamic support. Resistance for the KLCI are now at 1668 & 1680.
As indicated by B, total market volume fell 19.43%, but still above the 40-day Volume Moving Average. This shows that the market is still actively participated. But with the KLCI falling sharply, together with losers outnumbering gainers, the active trading actually suggests stronger selling activities.
As indicated by C, the Stochastic breaks below 70%, 50%, and 30% all at once, reaching down to 0%. This is because the KLCI ended sharply lower, and fluctuate more than its usual movement. Nevertheless, if the Stochastic should stay below 30%, it suggests that the short-term movement of the KLCI is now weakening.
In conclusion, the KLCI failed to break its 1680 resistance. Although the KLCI ended sharply lower, this does not necessary means that the KLCI is turning to a downtrend immediately. Technically, the KLCI could just be having its technical correction, as for whether the KLCI would form a downtrend, it would take a little more time, and further validation is required.
富时大马综合指数 2012-11-02

No comments:

Post a Comment