Thursday, October 16, 2014

KLCI : South Pursuit

Well, It has been long while that I did not put up on coverage about our KLCI direction. Today I decided to do some short write up base on what I can see from this few days selling blood bath! 

Yesterday and today we are experiencing high market rout through out the world. This has been long due correction for KLCI progressing uptrend since 3 years ago. Our index has violated the uptrend line after breaking at 1860 in early Aug. Since then the index has weakening day by day and end up to the sell down for the pass 2 weeks. From the chart I can see that we are going to bottom out soon ranging between 175x-176x. Technical rebound is around the corner and I expect index to push up about 50 to 70 points before it decide which direction it plan to go. Let see will this materialize!
After the rebound, what I am concern is that the index might not easily break the strong resistance now set at 1850! It will definitely try few attempt to break this level. Even if it breakout the farther can reach will be 193x-194x than mostly will drop back below 1850! Let see how the index play up. Those who manage to grab and buy your favourite stocks in this few days sell down better to sell your holding when index reaching or almost reaching this 1850 level. Hold only stronger stocks or apply "wait and see" before decide any buying to avoid been trapped. Failure to penetrate or sustaining this critical resistance in short term will sent our index back towards 175x. If this level break we will be going to have cheap sales and lelong lelong to visit the very critical and important support which is at 1650! This level must not be breach. Once breach I would say this will be the end of our market uptrend!!!

That's all what I want to say. Good Luck All and Happy Trading. Cheers!!!