KLCI closed lower last week to settle at 907.75 points or 0.8% lower compared to previous week's close. As pointed by A, KLCI fell below the T2 support trend line; hence KLCI had broke away from the Up Trend-Channel formed by T1 and T2. KLCI immediate support level lies at 905 Fibonacci and 900 psychology support.

Bollinger Band (BB) expanded 17% on last Friday while KLCI was already situated below the Bollinger Middle Band (BMB); hence KLCI up coming trend is still not looking good, unless KLCI break about the BMB resistance.

Technical Indicators

Volume
As pointed by B, volume traded in Bursa Malaysia maintain a the level of  40 days Volume Moving Average (VMA); if volume fall below 40 days average, it is very difficult for KLCI to soar.

MACD
As pointed by C, MACD fell below zero last week, there for KLCI mid term trend is in weakness, until MACD surface to positive again.

RSI
RSI moved around 30% to 50% last week, this indicates that KLCI mid term trend is weak too (below 50%); normally KLCI will only be turn stronger when RSI break the 70%.

STC
Short term indicator like STC had already fell below 70% last week, it is now below 30%, this indicator KLCI's short term was on down trend, until STC break above the 30% mark.

In a nut shell
Because KLCI broke below the Bollinger Middle Band, there for users should be cautious about KLCI up coming trend. Another words, if KLCI unable to break the BMB in short time, KLCI will be turned into down trend.

Copyright 1997-2004 Straits Index (M) Sdn. Bhd.