Chart: KLCI's daily chart as at April 10
Tuesday, April 10, 2007
Market Outlook as at April 10, 2007
Looking at the chart below, I believe our market is likely to take a short breather very soon. The important question is whether the mild correction will happen after the KLCI has crossed the 1300 psychological level or before. If it is the former, we can expect the 1300 level to act as a support. If the latter scenario panned out, the correction will likely to be a bit sharper, with the KLCI testing its 10-day SMA at the 1265/70 level. Nevertheless, I expect this level to hold & the KLCI to test the all-time high of 1332 on its next upswing. Whether the KLCI can overcome that all-time high level will be something that we will look at later.
Chart: KLCI's daily chart as at April 10
Chart: KLCI's daily chart as at April 10
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2 comments:
I do not understand why you say "The important question is whether the mild correction will happen after the KLCI has crossed the 1300 psychological level or before."
when the index has already closed above 1300.
If the KLCI has crossed the 1300 level convincingly, then that level will turn from a resistance to a support. At the close of yesterday's trading, the KLCI was pushed up by last minutes' blue chips buying. This artificial move will be put to the test today & we will see whether it can hold above that level or otherwise.
My feeling is that the current overbought market is likely to have sufficient momentum to push the KLCI above the 1300 level by 10-20 points before a mild correction will occur.
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