CI broke above 935

The CI has broken above the heavily congested area between 920 & 935 levels against pretty strong odd (such as the uncertainties in the Middle East and a sharp selldown of speculative counters in the local bourse). Undoubtedly, the strong performance of the Plantation sector has helped the CI considerably but a closer study revealed that the improvement in the CI may be more broadbased than one may envision.

To re-cap, the CI has gained a total of 14.42 points in tha past 3 days to close at 936.76 yesterday. In the process, the CI has broken above the high of 928 recorded on July 13 as well as the strong horizontal resistance of 935 (which was the high recorded on June 5). The daily MACD has also hooked up to do a positive crossover, thereby giving a bullish sign (see Chart below).

















Chart: CI's daily chart as at July 27