Technical | Fundamental Analysis Discussion Stocks Listed In Bursa

Thursday, November 13, 2008

KNM 7164 / Composite Index 12/11/2008 / 综合指数 2008年 11月 12日

KNM 7164

Stock Reviews & Commentaries By Zhuge Liang

KNM shares were sold down to extreme lows of 39sen and 41.5sen on 16 and 28 October respectively, before bouncing back to build immediate support above 60sen (IS) this month. In spite of the overbought daily slow stochastics signal, recent strength has improved upside momentum, as reflected by the positive daily MACD indicator. A strong close above the 30-day SMA (80sen) will boost upside towards the immediate downtrend resistance lines at the 90sen immediate target (IT). Next target is RM1.00

Support level IS RM0.67

S1 RM0.60

Stop-Loss Below SL RM0.55

Upside Target IT RM0.90
T1 RM1.00
T2 RM1.15

Buy On Dip for rebound to 90 sen target.


Composite Index Daily Technical Analysis 12/11/2008

On Wednesday, the KLCI ended 4.26 points lower as drag by the negative performance of the Dow Jones and regional markets. As indicated by A, the KLCI is now precisely supported at the Bollinger Middle Band, which is the dynamic support for the KLCI. Resistance for the KLCI is still at 940 Fibonacci Retracement.

As shown on the chart, the Bollinger Bands Width contracted 14%, suggesting the KLCI is still in its consolidation stage, and the market direction is still unclear.

As indicated by B, total market volume declined 33%, but volume is still above the 40-day VMA level. Generally, the overall market participation is still healthy. However, if the KLCI should continue its sideways consolidation, a decline of volume is usually normal.

As circled at C, the Stochastic breaks below 70% level, suggesting an end to the short term bullish movement. If the Stochastic should failed to return to above 70% level, the short term movement for the KLCI is likely to turn weak.

In short, the KLCI is consolidating now, thus the short term bullish movement has ended. At the moment, we are still waiting for the Bollinger Bands Width expansion signal, which would mark a beginning of a new movement, and we shall be able to determine the new direction for the KLCI with its position above or below the Bollinger Middle Band when the Bollinger Bands Width re-expands.

综合指数 2008年 11月 12日


如图所示,布林频带(Bollinger Band)收窄14%,这表示综指目前继续的处于一个横摆巩固的格局里,通常综指将会一直维持在此趋势,直到布林频带再度明显的打开为止。





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