Déjà vu?

From Wikipedia, we learn that the term "déjà vu" describes the experience of feeling that one has witnessed or experienced a new situation previously (go here). From the 2 charts below, we can see why one may experience this compelling sense of familiarity today.

What we have just witnessed today is the breaking of the immediate uptrend line as well as the 10-day SMA at the 1310 level. On the past 2 occasions that we have witnessed these twin events, the market experienced a nasty bout of correction. The only saving grace for today is that the KLCI has managed to recover & close marginally below the breakdown level. This makes tomorrow a very crucial day indeed.


Chart 1: KLCI's daily chart as at April 19 (overlaid with uptrend lines)



Chart 2: KLCI's daily chart as at April 19 (overlaid with 10-, 20-, 30- & 50-day SMA)

If the KLCI were to break below 1310 as well as the important psychological 1300 level, you may have to reduce your position at bad prices or face the prospect of even worse prices in the days ahead.