KLCI: Testing the Downtrend Line.

KLCI 25.2.2013
After testing the psychological support for the third time, our local index rose for 3 consecutive days. The low traded volume for the past 2 days indicates declining interest as the index move higher. Moving on, we need to observe whether the downtrend line will be broken. If it does, our index will move up to test the next resistance level at 1635. If you are holding a long position now, you may want to consider closing your position tomorrow as trend tends to get exhausted on its 3rd day. If you do not own a position and are eager to take one, this would be a good opportunity to short the index. Do not initiate a long contract at this juncture because the possibility of reversing is much higher.

 

3 Responses to KLCI: Testing the Downtrend Line.

  1. korok says:

    deric..for me the result of “testing the psychological support” still do not carry the good result as ge13 is around the corner…how your view on klci after ge?

    (still new)

    • Deric Yee says:

      I have to agree with you. I’m still bearish in the medium term in fact. My view in this post is on the immediate development of our CI and while the chances are low, it is not impossible for the CI to break the downtrendline thus it is worth mentioning so as to get ourselves more prepared in the event if it really happens.

      • korok says:

        definitely u are great analysts deric as today klci up 10++ point..i’m interested to learn from u….please keep posting your view!

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