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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Filed Under (Finance Help) by Admin on 10-05-2009
This currency pair has been caught in a wide trading range for the past three weeks, in between the high of May 6th at 1.3581 and the low of May 22nd at 1.2885.
From March 19th to May 30th this market moved down and sideways within channel lines. Many traders see this as a flag pattern formation. In my view the formation is certainly not ideal since the internal waves are not quite normal for a flag. Generally, with an ideal flag, the break out would be in the direction of the so-called flag pole, which in this case would be up, but so far the break out above the upper channel line has been less than enthusiastic.
It seems that the best thing to do is identify levels of resistance and support with probable near term targets if on or the other level is exceeded.
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Filed Under (Finance Help) by Admin on 07-05-2009
Oil has developed a trading and conciliation band behaviour. This is clearly observed on the NYMEX (New York Mercantile Exchange) Crude Oil weekly chart. The width of the band is now defined by the resistance level that developed near $53.00. This is a little distance below the historical resistance level near $56.00. The lower edge of the trading band is near $33.00.
Towards the end of 2000 oil developed an equilateral triangle pattern. This is a pattern of indecision. The breakout from this pattern has a 50% probability of moving up or down. The important development of this pattern has been the price behaviour in relation to the middle point of this pattern. The middle point or apex, of this triangle pattern is located near $42.00.
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