Thursday, January 28, 2010

technical rebound expected

yesterday, Bursa Malaysia closed lower at 1264 on 28/1/2010. Based on 30 minute chart, it is hovering at 1261-1258 support. Resistance is at the 50% retracement of 1285, and the 61.8% at 1290. Stochastic indicator is showing a small hook-up, indicating a rebound.

RSI is still weak at 35. Today's range is between 1258 and 1268. Following the breach of the key 1286 support earlier, thesupport is lowered to the 1248 low of 30/11/09, with the immediate resistance at 1290

Reference:
from wiki, stochastics oscillator is a momentum indicator that uses support and resistance levels. It attempts to predict price turning points by comparing the closing price of a security to its price range.
The indicator is usually calculated as:
%K = 100 \frac{\text{closing price} - \text{price low}}{\text{price high} - \text{price low}}
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