The week before Chinese New Year – how will KLCI fares?

KLCI 2nd March 2013

Though underperforming our regional peers, our KLCI is still moving within the upward channel, thus the long-term outlook remains intact. But how about its short-term movement? How will KLCI fares this week? Will there be an additional dip or will we see a W-shape recovery?

Honestly, I can’t tell until the market (KLCI) provides me with more information. I was expecting the market to make a clear directional move on last Thursday but both the bulls and bears were equally strong. Until there is a clear winner between the two, I shall not attempt to make any bold directional prediction.

While it is possible that the directional movement occurs on any day of the week, 4th of February (Monday) is definitely a day worth watching because according to Gann wheel, it is one of the many dates that we will see a reversal of price movement, either up or down. Otherwise, the market should move sideway since investors are cashing out for Chinese New Year celebration.

At the meantime, I shall maintain my downward bias since our general election (GE) is around the corner and based on historical trend, a GE announcement would usually send our market to a lower low.

One Response to The week before Chinese New Year – how will KLCI fares?

  1. Deric Yee says:

    Thank you.

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