Tag Archives: gann wheel

KLCI: An Up Thursday Maybe?

KLCI

While the short-term trend is still bearish, as indicated by the downward slopping trendline that connects all recent highs, KLCI may rebound slightly tomorrow and the day after. This prediction is not without a basis since a hammer with high volume is formed and risk-taking activities can be seen in a number of shares (I shall share some of the shares with bullish signal in another post). From a market anomalies perspective, Wednesday has proven to be a day with high possibility of reversal, especially if the direction of the price movement are the same from Monday to Wednesday. A green bar is not impossible since 20th of February is also one of the reversal dates according to Gann’s wheel.

Despite the bullishness in the immediate term, we have to be wary of the announcement of the dissolution of parliament as it could potentially send our market down towards the 15xx region. The continuation of the downtrend of our major telcos (Axiata, Maxis, Digi) could also offset any gains in other KLCI constituents, thereby dragging the CI down as they are among the top 7 companies by index sensitivity.

To conclude, its a 2-days GO for day-trader but a WAIT for others. If you are planning to take a position, make sure you keep your stop loss tight.

Chinese New Year Rally? Probably Not.

KLCI - 4.2.2013
4th of February is an up day for Malaysia!  So will there be a Chinese New Year rally? Let’s look deeper and see whether the rally is possible and if it is, whether it’s sustainable.

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.