Tech Talk Bursa Malaysia WW37

I totally forgot that I am still on holiday where else Bursa already resume trading haha. First, recap on the previous week's tech talk.

1. RSI continues to trend at overbought signals but seeing some profit taking at the end of the week. Still no swing test and no divergence signal. 40-50 support line still unbroken. 
2. MACD start to show profit taking but not big enough to constitute a correction. KLCI not performing anywhere near centerline & no crossover expected.
3. Resistance set at 1450-1470 points while support level is at 1410-1400 points.

Relative Strength Indicator (RSI)

Chart Setting: SMA 1, RSI (14, 20), Mar'10 to Sep'10

Last week we see investors trading at sidelines with gainers as much as losers. Nevertheless no swing test or divergence signal is expected in coming week but investors are beginning to unwind just before the long Raya holidays.

Moving Average Convergence Divergence (MACD)

Chart Setting: EMA 12, EMA 26, MACD (26, 12, 9), Mar'10 to Sep'10

Losing momentum as MACD line is trending towards 20. KLCI still far from the centerline and thus crossover is not expected for the coming week.

Resistance and Support Level

Chart Setting: Mar'10 to Sep'10 (6 months)

New resistance now set at 1460-1480 points while support level is now at 1420-1400 points (the KLCI psychological barrier).

In a Nutshell

Market did not consolidate a lot but KLCI did encounter resistance to go up one notch like in the previous three weeks. From time of writing I know Bursa is now at 1457 points up by 20 points in a single trading day with blue chips soaring higher & our dear Najib's announcement that ringgit might be made tradable offshore again. Nevermind that, my resistance and support levels still stand as above.

My technical skills sucks? Maybe, perhaps, you be the judge but I am only using technical to observe key events such as crossovers and swing tests to see how the overall market is heading. Technical still shows bullish signs but my fundamental calculations in some of the blue chip stocks show the word 'expensive' well except Parkson.