KLCI index closed at 1159 on Friday, up 18 points for the week. The technical indicators are looking better for the index.
The index has broken the upper channel line of the down trend line and there was a positive divergence between price and its 14 day RSI indicator.
The index has to stay above a low of 1089 in order to make a higher low. And if the index moved above 1163, then we will have a case of higher high and higher low which according to Dow’s theory is a bullish sign.
The ADX is also decreasing showing that the Bearish trend is weakening. The +DI is now slightly above the –DI another bullish sign.
The index has broken the upper channel line of the down trend line and there was a positive divergence between price and its 14 day RSI indicator.
The index has to stay above a low of 1089 in order to make a higher low. And if the index moved above 1163, then we will have a case of higher high and higher low which according to Dow’s theory is a bullish sign.
The ADX is also decreasing showing that the Bearish trend is weakening. The +DI is now slightly above the –DI another bullish sign.
