Saturday, May 15, 2010

KLCI Update


KLCI has been holding well even though Europe has caused stock markets world wide to embark on a correction mode.

The index is facing resistance at 1350 level. It has tested this level 3 times for the past 1.5 months and has not been able to break through.

The –DI is now above +DI indicating weakness in the price action. However with ADX below 20 levels, there is no sign of a strong downtrend developing.

MACD indicator is just slightly below its signal line which is a bearish signal.

Gathering the evidences painted by the charts, index looks set to weaken next week. However possibility of a strong downtrend developing is still not present. The next support level is around 1310

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