02/09/13: Still Resisted by the Gap, 1730

Date     : 2nd Sep 2013 (Mon)
KLCI   : 1718 (-10)

After 2 consecutive big rising days, the technical rebound seemed to be weakened when it was interrupted by black candle. The momentum is reduced sharply. The Gap Resistance, 1730  is expected to be strong and it seems to be able to halt the technical rebound. This estimation is supported by
1. The drastically shrinking volume. The ability to further rally is low.

2. Immediate retreat when R=1730 is approached. This resistance is very significant.
3. More ever, it has been working quite well for recent days.

Critical Levels:
Support : 1700 (psychological level), 1655 (Long term up trendline)
Resistance : 1730 - 1740 (Gap level)

Technical Indicators:
1. Stochastic : Critical (But bearish biased)
    Any turning down will indicate a sell signal.
2. Bollinger Band: No signal.

Conclusion:
1. No signal is triggered today. Continue to stay out.
2. Be prepared for a short term short, target will be around 1655.
3. This technical rebound won't last long. It will be ended very soon (about a week).
Confidence level: 90%