Filed Under (Finance Help) by Admin on 11-05-2009
Weekly KLCI chart with volume as at 8 May 2009 using NextVIEW Advisor Professional
Technical analysis is under a test. The test is whether history will repeat itself from the price-volume pattern. If it does, KLCI is expected to fall to 650 points. However, the current momentum indicates that the KLCI can go higher. The KLCI is currently near the double bottom chart pattern formation target at 1,040 points. That is the resistance the KLCI has to overcome to continue its bullish momentum and the next resistance is at 1075 points, a Fibonacci 38.2% retracement of the longer term bear trend.
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Filed Under (Finance Help) by Admin on 11-05-2009
The bulls are running amok in the equity markets. Buying was broad-based as investors are becoming more confident in taking higher risk. The market was bullish the whole week. On Thursday, the KLCI opened on a bullish note at 1,031.83 points and went as high as 1037.81 before settling lower at 1023.47 points in the later session. The KLCI nearly tested the 1,040 points resistance level that I have mentioned last week. Trading volume was high at 3.67 billion shares exchanges hands. Equally interesting is the political scene in the state of Perak where a ruckus was created between two opposite political parties both claiming to be the legal government of the day in the state assembly.
Markets in the region have also been very bullish especially in Hong Kong and Taiwan. Even Thailand which is on a political dilemma was up. The KLCI rose 56 points or 5.8 percent on week, the highest since late September 2008. Trading volume continues to surge on week. The average daily volume for last week was 2.3 billion shares, up 35 percent from the previous weeks average volume of 1.7 billion shares. Trading volume on Thursday was exceptionally high, 3.6 billion shares exchanged hands.
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