KLCI : 1,724 (+3)
Our KLCI had been moving tightly for the whole trading day as it did yesterday. Again, Gap resistance 1,730 is emphasized and still served as a very important control point. It is believed that the KLCI is still trapped in 1,700 to 1,730 since the technical rebound before it declines again.
1. The average traded volume is low since the technical rebound.
2. Size (Range) of recent candles are tiny relatively.
Critical Levels: Remained the same with previous view.
Resistance : 1730 - 1740 (Gap resistance)
Support : 1700 (psychological level and long tail)
1655 (Long term up trendline)
Technical Indicators:
1. Stochastic:(Critical but bearish biased)
It had moved into the overbought territory for this technical rebound. The excellent SHORT signal will be formed later when it moves downwards and exits the overbought territory as labeled in the chart.
2. Bollinger Band:
No signal is generated. It's not so meaningful compared to stochastic at the moment. Although the band expands slightly and moving upwards, it's not a convincing bullish trend because it fails to reach the upper band.
Conclusion:
1. No signal is triggered today yet. Continue to stay out is the only option.
2. Be prepared for a short term SHORT, target will be around 1655.
3. Basically, the view is still remaining the same since the technical rebound from 1660.
4. The situation becomes more critical as it progresses nearer to trading signal soon.
Confidence level: 95%
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