Monday, March 7, 2011

KLCI Likely To Be In Trading Range

KLCI index rebounded off its lower Bollinger band on 28 Feb.  The index is now above its 20 day moving average and is set to test its upper Bollinger band at around 1539 level.

Technically the index looks bullish.  The MACD indicator just made a bullish crossover with its signal line.  The +DI is now above its –DI line.  However the ADX indicator is still low at current levels and that means that we do not expect a strong uptrend.   2 day RSI is reaching overbought levels and we will most likely see a pullback.  The index looks set to remain in trading range between 1476 and 1539 levels.

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