KLCI Daily ChartBearish divergence detected in the daily chart. This is due to the financial sector which shows the same behavior. Property sector is very overbought but should be able to go up further after a correction (current reading at 950, next resistance at around 1100). Construction sector is also very overbought and should correct before challenging the next resistance (current reading at 270, next resistance at around 285). Plantation rallied a lot last week and now is also in the very overbought zone (current reading at 7400, next resistance at 8000).
Based on the monthly chart, only the financial sector is in the very overbought zone. Plantation, property and construction will have to do some catching up.
Summary:
| Malaysia | Monthly | Weekly | Daily |
| FBM KLCI | Up | Up | Up |
| Finance | Up | Up | Up |
| Construction | Up | Up | Up |
| Plantation | Up | Up | Up |
| Property | Up | Up | Up |
6 comments:
Hi Swifz,
When you mentioned overbought on a particular indice, how do we identify it on the chart?
regards
Hard to identify from the chart.
From bottom row:
1. Volume
2. Stochastic
3. MACD histogram
4. RSI
Usually, I rely on RSI. Overbought is over 70. Oversold is under 30.
What stockchart software do you use to see the candlestick, RSI, MACD, stochastic as shown on the picture? Is this a free software I could get from anywhere?
I'm using Metastock.
Hi,
What does the function of RSI, MACD and stochastic help in my analysis? In what situation should I use them?
regards
Give me sometime to reply on that question. I cannot explain it with a few sentences. Need examples to show you what I meant. It will be written as entries in my blog.
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