KLCI: Strong Push by The Foreign Funds

KLCI (3)
It has been some time since we last seen our index soar by more than 15 points. After closing lower than its opening for 2 days on high volume, the local index rose by 17 points and stopped near the immediate resistance of 1645. The hike in our index was caused mainly by the aggressive acquisition by foreign funds. They had, according to statistic, made a net purchase of 326million shares today. If the index manages to break above 1645 again, then the low created on the 18th of March would be the cycle low, and we would see the index forming an arc in the next one and a half-month. As long as the index stay above the trendline, the arc should be a bullish arc, meaning the end of the arc would form a higher low compared to the beginning of the arc. Looking at the current situation, it is definitely risk-on for investors although the ratio of gainers to losers for the past few days are not satisfying.

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