Friday, October 27, 2006

Market Outlook for W/E October 27, 2006

The CI has gained 7.27 points to close at 989.90 today (October 27). The volume traded is very big at 906.5 million units, with gainers out-numbering losers by 579 to 229. See Chart 1 below.

















Chart 1: CI's daily chart as at Oct 26

With this strong move, the scenario as described in my earlier post may still happen.

In addition, I wish to point out that the Second Board has also broken above its medium-term downtrend line at the 83.8 level. Its upside move in the coming days will see it testing the immediate horizontal resistance at 87.7 level. On weakness, the Second Board may drift back to find support at its short-term tentative uptrend line at 83.4 level. See Chart 2 below.

















Chart 2: Second Board's daily chart as at Oct 26

It must be pointed out that the Second Board's upside move may be checked in the weeks ahead by its long-term downtrend line (as well as strong horizontal resistance) at 91-94 level. It must surpass this level in order to have a sustained rally ahead. See Chart 3 below.

















Chart 3: Second Board's weekly chart as at Oct 26

In conclusion, I expect a very exciting trading time ahead as the CI, Second Board & Mesdaq Board (see earlier post on the latter) are likely to maintain their respective upside momentum.

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