Error locating the adsense functions page! Ensure cjt_adsense_functions.php exists, or reinstall the plugin. 4-May KLCI Index, Rebound then … – Technical Analysis

04 May4-May KLCI Index, Rebound then …

4-May KLCI Index, Rebound then …

Date: 4-May-2012

Malaysia KLCI Index: 1591 point


Malaysia KLCI Index Overview

Today KLCI index rise 7 points (0.5%) and close at 1591 points.  For investor who stare on the screen on KLCI index notice that the index is actually report around 1586 points at around 4:30pm and suddenly shoot up to 1591points and close at highest for making a day.

The KLCI index is pretty much follow our previous analysis, it still obey with the moving average trend line.  After breaking through the 20D-MA, the KLCI shift to next support at 1571 points, then looking for the support from 60D-MA and start another rebound.  Yes, rebound but not another raising rally.

In our analysis, we clearly stated the KLCI index moving trend by using standardize stock analysis procedure, we never add in other news effect, such as the 428 assembly, Europe crisis.  We just focus on technical analysis, this make our analysis simple and straight forward.


Below trend chart is Malaysia KLCI index trend chart on 4/May.


4-May Malaysia KLCI Index Analysis Report

4-May Malaysia KLCI Index Analysis Report


Moving Average

Let us look at moving average trend line.  The 60D-MA and 120D-MA are moving up trend whereby 10D & 20D-MA is moving downward.  Further more, the 10D-MA is on the way to crossover 60D-MA.

The moving average trend line already revealed currently KLCI index is facing medium term correction and finding support from long term.  More over, from rebound stand point, 1591 to 1594 points will be the strong resistance.

We need to examine other parameters to conclude future movement.


Volume Analysis

We are not seeing an increase in daily transaction.  It still maintain below 20D-VMA.  We could notice 60D & 20D-VMA is moving downward.

From volume analysis, we could conclude the shrink in volume has seriously affected Malaysia KLCI index and forbid it to move higher.  The only support is from 120D-VMA is still at moving upward.

Whether the low transaction is stabilizing the KLCI index or brings the index to test lower support?  We are going to discuss in separate article in details.  KLCI index requires maintaining at 1.2B transaction as it minimum case.


Stochastic & MACD Indicator

MACD indicator currently is showing an upward rebound pattern, it is not a reversal in pattern.


Malaysia KLCI Index Summary

KLCI index currently is at rebound stage.  Once the rebound is facing resistance, it will go back to it original trend.  The resistance is within the range 1591 to 1594 points.

Any shrink in daily volume below 1.2B is definitely brings worst effect for KLCI index.


Malaysia KLCI Index Trading Strategy

Rebound is the opportunity for investor who having some share in hand to sell off the share and hold cash.  If you haven’t already cashing from stock market, this is the good moment to do so.

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