For the week ended on the 20th of August, 2010, the KLCI lost a total of 34.87 of a points, with weekly high of 1395.03 points and a weekly low of 1358.95 points, total volume was 4,902,271,200 shares, upped 24.4%.Main Chart: The KLCI continued its rally after being supported by the 14, 21, 31 EMA, breaking above 1370.52 resistance. The next resistance for the KLCI is at 1400 points while the support is at 1354 and 1340.63 WinChart Automatic Fibonacci Retracement.
Volume: As indicated by B, total market volume was above the 40-day VMA level, this shows that the market is well-participated as the market sentiment as a whole was still positive. Generally, if volume should remain above the 40-day VMA level, it is likely to have a positive effect for the market.
Bollinger Bands: The Bollinger Bands re-expanded last week, with the KLCI above the Bollinger Middle Band, thus the KLCI started its rally. The rally of the KLCI is likely to continue until the contraction of the Bollinger Bands or the expansion rate decreases.
MACD: The MACD histogram ticked higher, suggesting that the KLCI movement is improving. The improvement of the KLCI is likely to carry on as long as the MACD histogram is still rising.
WinChart RSI: The WinChart RSI stays above 70%, thus suggesting that the mid term movement of the KLCI is still on the bullish side.
Stochastic: The Stochastic is touching 100%, suggesting that the short term movement of the KLCI is indeed bullish, but it is now over-heated, thus a pull back is likely to take place in the near future. If the Stochastic should break below 70%, it would be a signal suggesting a beginning of a technical correction.In a Nut Shell: Uptrend of the KLCI remains intact as long as the KLCI is still above the rising 14, 21, 31 EMA, as the immediate technical outlook is still bullish biased. However, short term over-heated is in-sight, and therefore, we shall expect some sort of a pull back, while not affecting the uptrend.
Following are more readings of its technical indicators:-
Moving Averages: The FBM KLCI stayed firmly above all its 10-, 20-, 30-, 50-, 100- and 200-day moving averages.
Momentum Index: Its short-term momentum index stayed above the support of its neutral reference line on Friday.
On Balance Volume (OBV): Its short-term OBV trend continued to stay above the support of its 10-day exponential moving averages.
Relative Strength Index: Its 14-day RSI stood at the 78.35 per cent level on Friday.
Momentum Index: Its short-term momentum index stayed above the support of its neutral reference line on Friday.
On Balance Volume (OBV): Its short-term OBV trend continued to stay above the support of its 10-day exponential moving averages.
Relative Strength Index: Its 14-day RSI stood at the 78.35 per cent level on Friday.
Outlook
Initial mild pullbacks on Monday sent the FBM KLCI to its intra-week low of 1,358.95 on Monday, just above this column's envisaged support zone (1,324 to 1,356 levels).
Subsequent persistent rebounds sent the FBM KLCI to its intra-day high of 1,395.03 on Friday, moving into the confines of this column's envisaged resistance zone (1,364 to 1,398 levels).
A quick glance at the performance of the FBM KLCI's 30 components, its gainers overwhelmed losers by 24 to 4.
BAT, Genting, Maybank and CIMB's combined gains of 64 sen, 43 sen, 41 sen and 39 sen helped the FBM KLCI in tracing out a week-on-week gain of 34.8 points, or 2.56 per cent. Axiata remained the top performing component with a total year-to-date gain of RM1.30, or 42.62 per cent.
Initial mild pullbacks on Monday sent the FBM KLCI to its intra-week low of 1,358.95 on Monday, just above this column's envisaged support zone (1,324 to 1,356 levels).
Subsequent persistent rebounds sent the FBM KLCI to its intra-day high of 1,395.03 on Friday, moving into the confines of this column's envisaged resistance zone (1,364 to 1,398 levels).
A quick glance at the performance of the FBM KLCI's 30 components, its gainers overwhelmed losers by 24 to 4.
BAT, Genting, Maybank and CIMB's combined gains of 64 sen, 43 sen, 41 sen and 39 sen helped the FBM KLCI in tracing out a week-on-week gain of 34.8 points, or 2.56 per cent. Axiata remained the top performing component with a total year-to-date gain of RM1.30, or 42.62 per cent.
The FBM KLCI's weekly chart continued to stay above its immediate downside support (See FBM KLCI's weekly chart - A3:A4) at the market close on Friday. Also, it continued to stay below the support of its intermediate-term uptrend (A5:A6).Chartwise, the FBM KLCI's daily trend staged a successful re-test of the support of its intermediate-term uptrend (See FBM KLCI's daily chart - B1:B2) on August 12 before staging continuing rebound yesterday. It continued to stay above its intermediate-term downtrend (B3:B4).
The FBM KLCI's daily, weekly and monthly fast MACDs (moving average convergence divergence) stayed above their respective slow MACDs on Friday.
The FBM KLCI's 14-day RSI stayed at 78.35 per cent level on Friday. Its 14-week and 14-month RSI stayed at 70.65 and 68.26 per cent levels respectively.
Last week, this column commented that the FBM KLCI was likely to build another base for the next rebound. It did. The base was short and swift before unleashing a week-on-week gain of 34.87 points.
Last week, this column commented that the FBM KLCI was likely to build another base for the next rebound. It did. The base was short and swift before unleashing a week-on-week gain of 34.87 points.
The FBM KLCI is poised to overcome its psychological resistance of 1,400 with the announcement of some quarterly results by some heavyweight components of the FBM KLCI. Second and third liners will continue to provide the market momentum.
Next week, the FBM KLCI's envisaged resistance zone remains at the 1,399 to 1,433 levels while its immediate downside support is at the 1,357 to 1,291 levels.
HAPPY TRADING
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