In our previous article dated 31 August 2018 (Read
more here), a histogram of weekly KLCI closing price was discussed. This week, we shall look at KLCI histogram
using daily closing price data.
Weekly data are useful for studying long term trend while daily
data are preferred when investor would like to examine the short-term behaviour
of the underlying.
Chart 1 below shows the volume weighted histogram of daily
closing price of KLCI from May 2010 till September 2018. Clearly from the
chart, 1630 is a strong support line, which is similar to weekly histogram results.
At the time this article was written, KLCI was trading at 1800, the immediate
support based on the histogram are between 1780 – 1790. The next resistance line for KLCI is at 1820. This again proven the strength of histogram
as KLCI touched 1826 on previous week then started to trend backward to restest
1790 resistance.
No comments:
Post a Comment