29/08/13 : Gap Resistance 1700 was filled.

Date     : 29th Aug 2013 (Thu)
KLCI   : 1,704(+18)

After the KLCI had recovered from frenzy 1660 on yesterday consistently, it moves upwards further. A full long white candle is form eventually for the first time since the decline from 1801. The critical gap resistance 1690 to 1700 was filled completely and convincingly. However, the traded volume is low relatively.
1. This is just a technical rebound as it had dropped for nearly 150 points in 2 weeks.
2. Low 1660 serves as a temporary trough for this technical rebound.
3. The role of gap resistance is reversed. It serves as a support from 1690 to 1700.


Critical Levels:
Support Level : 1700, 1660 (as mentioned)
Resistance Level : 1730 (refer to earlier gap)


Technical Indicators:
1. Stochastic : Critical (biased to bearish)
     It has exited the bearish territory eventually when it moved above 20.
     The undergoing technical rebound is validated.
2. Bollinger Band : No signal
     The decreasing band width shows the technical rebound has begun.

Conclusion:
1. This is just a technical rebound for a decline.
2. Partial SHORT liquidation is encouraged. However, LONG establishment is still discouraged.
3. Be prepared to SHORT when bearish signal comes

Confidence level : 75% as highlighted by the arrow in the chart.