Technical Commentary on 23-Dec-09 (WED) Closing:
Daily KLCI closed marginally positive at 1260.53 (+0.11, +0.01%). But the market traded volume (410.514mil) further decreased by 8.1%. (Counters up=278, down=287) Most investors still choose to stay sideline.
KLCI Daily Technical Analysis:
MACD is resting at the zero line, RSI stays at 44, STC %K stays at 28. KLCI still stays below the daily Bollinger Middle band of 1262. Most technical indicators still show negatives.
KLCI Weekly Technical Analysis:
MACD has formed round top since early Oct-09. RSI has gradually sliding from 85 to 65. STC has reduced from 100 to 50. MOM comes down to almost touching zero line. KLCI still stays below weekly Bollinger middle band of 1265 with the Bollinger band closing at -32%. The market is waiting for the next direction upon Bollinger band re-opening. In order for the market to recover up trending, the KLCI has to resume at least above Bollinger Middle band as shown on the chart attached below. Next one or two weeks is very critical for the next market direction upon Bollinger Band re-opening. UP or DOWN? Let’s stay tune…. and be alert….
Counter to Watch:
Etitech (0118):
As shown on the technical chart, this counter may have a prospect of bullish divergence. It will be more confirming should the price advance over 0.455 and remains above.
The near term resistances are 0.470/0.490. Should the price could break up 0.490 then the next possible resistance are 0.520/0.570, otherwise correction may take place after hitting 0.490.
However should investors take position, please be prepared the capital preservation plan by cutting lost below 0.420. By then, the bullish divergence stand may have to be voided and reviewed again.
