KLCI closed at 1292.98 (+1.56, +0.12%). Today is the third day of further reduction in trading volume by 29% to 1.036bil shares from the peak of 1.86bil shares. However it is still above 40 days VMA (820mil). We observed that the traded volume largely increased during the last one hour of trading. That may signal next week’s trading momentum may be good. (Read weekly analysis in the following).
There are 326 up counters and 367 down counters. The RSI is slightly below 70 level thresholds closed at 67, STC stays at %K at 83 and %D at 86. The MACD is slowing down but still indicating on the uptrend direction without forming a rounding top yet. The Bollinger band is slightly expended by 1% compare to Thursday. This shows that the market has yet to correct or consolidate further.
In short, all daily indicators show that KLCI short-term still not bearish biased. KLCI nearest resistance level is at 1300. The support level is at 1288, the nearest broke out peak, and the next support level is at the Bollinger mid-band around 1280.
In KLCI weekly analysis, MACD’s histogram has indicates round bottom. RSI stays above 70-level at 71, STC%K at 90 and %D at 70, momentum hooks up above zero line. The weekly trading has improved drastically by 222% to 7.1bil shares. The Bollinger band has expended by 41%. All weekly indicators show the market is trending upward, bullish biased. The possible upside resistance is 1300-1305 and then 1353. The possible support levels are 1288 (previous broke out peak) and 1276 (Bollinger middle band).
Stock to Watch:
Proton (5304):
As shown in the chart details, we are observing this counter to break out of the triangle. If the break up took place, the nearest possible resistances are 4.10 / 4.24 /4.50 / 4.60. Should all these resistances were broken likelihood we are observing the formation of Elliot wave 5 toward may be 5.60. However, should it break downward, the cut lost price could be around or below 3.90.
Penta (7160):
This counter has been consolidating for almost 9 months until today it broke up above 0.210 and 0.235 and finally closed at 0.240. We are observing for the nearest possible resistance at 0.330 and 0.360. The support levels are 0.235 and 0.210.
