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Saturday, November 1, 2008

Composite Index 31/10/2008 综合指数 2008年 10月 31日

Composite Index Daily Technical Analysis 31/10/2008 By Zhuge Liang

As indicated by A, the KLCI continues its technical rebound on Friday and precisely resisted at T2 line. This shows that the T2 line is temporary the resistance for the KLCI. Meanwhile, the 887 Fibonacci Retracement is the next resistance for the KLCI, while support remains at the 800 mark.

As shown on the chart, the Bollinger Bands Width contracted 14%, suggesting the KLCI is consolidating, and the first target of the technical rebound is usually at the Bollinger Middle Band. In other words, the KLCI has to break above the Bollinger Middle Band in order to break away from the bearish region.

As indicated by B, total market volume declined 16.7%, but still above the 40-day VMA level, therefore, suggesting the overall market is still relatively active. Generally, if the KLCI should rebound with strong volume, it is a positive sign.

As circled at C, the Stochastic is now reaching 50% level after breaking above the 30% level, suggesting a continuation of its technical rebound. If the Stochastic should break above 70% level, it would be a short term bullish signal for the KLCI.

To sum up, the KLCI is now testing the T2 line as well as the Bollinger Middle Band dynamic resistance, and therefore, with the market sentiment remain weak, the outlook for the KLCI would still be bearish biased if the KLCI should fail to break above these resistance lines.

综合指数 2008年 10月 31日 By Zhuge Liang


如图所示,布林频带(Bollinger Band)收窄14%,所以综指继续从之前的跌势反过来出现技术反弹。综指目前接近布林中频带(Bollinger Middle Band),这是综指技术反弹的第一个目标以及动态阻力线,换句话说,综指必须先上扬突破布林中频带,综指才有望持续出现转强的走势。





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