09 Jun8-June KLCI Index, 60D-Moving Average becomes Resistance

8-June KLCI Index, 60D-Moving Average becomes Resistance

Date: 8-June-2012

Malaysia KLCI Index: 1570 point

Malaysia KLCI Index Overview

Today Malaysia KLCI index close at 1570 points, close lower -0.3%.  By looking at the technical analysis chart, we could clearly identify currently Malaysia KLCI index is facing a resistance from 60D moving average.

On 30/May, the KLCI index manage to challenge 60D Moving Average, the index manage to close higher than 60D-MA during the next day, 31/May, however it quickly retract and search for the support from 120D-MA.  On 7/June, the index touching the 60D-MA again, but the next day, the KLCI index quickly retract.

Till now, we know the KLCI index is fluctuate between 60D and 120D-MA.

Below trend chart is Malaysia KLCI index trend chart on 8/June

Moving Average

From the price action, we could clearly see that the KLCI index is fluctuating between 60D and 120D.  For coming movement, we need to examine the volume action to determine movement.

Volume Analysis

KLCI index is facing shrinking in daily transaction volume, the 20D-VMA is moving downward and currently reported at 0.88B.  Currently the daily transaction is recorded at 0.58B.  This is the lowest daily transaction volume within this year.

With the shrinking in daily transaction volume, we should able to conclude the KLCI index is having less participate that very soon the index will move lower.

Stochastic & MACD Indicator

From MACD indicator, we could conclude the existing situation KLCI index is a rebound but not the bull rally.

Malaysia KLCI Index Summary

The investor in KLCI index should let go the share and hold cash.  The KLCI index is not a bull really.

Malaysia KLCI Index Trading Strategy

At this stage, there is no sign for Malaysia KLCI index could continue moving upward.  Investor should be cautious to put long position.