03/09/13: Still resisted by critical Gap Resistance 1730

Date     : 3rd Sept 2013 (Tue)
KLCI   : 1,724 (+7)

Our KLCI moves in a relatively tight range below the critical Gap Resistance 1730 as explained on yesterday. However, it is still failed to cross this level. The KLCI is expected to be moving in a horizontal range before it continues to decline again. The chance for the technical rebound to further is low. This projection is supported by these evidences:

1. Although there is expansion in volume (day to day basis) but it has been shrinking averagely since the technical rebound. The technical rebound is exhausting.
2. The Gap Resistance 1730 has been serving well recently. It is very meaningful and be expected to work.

Critical Levels: Remained the same with previous view.
Resistance : 1730 - 1740 (Gap resistance)
Support     : 1700 (psychological level), 1655 (Long term up trendline)

Technical Indicators:
1. Stochastic : Critical (But bearish biased)

• It's getting clearer when the 80 is approached. 
• Any turning down (as highlighted by red arrow in the chart) will indicate a sell signal that we have been waiting patiently since the technical rebound.

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. Basically, the view remains the same.
4. The situation becomes more critical as it progresses nearer to trading signal soon.
Confidence level: 90%