Market Outlook as at July 31, 2007

The KLCI appears to have tested its medium-term uptrend line at the support level of 1340 on July 30. Given the continuing correction on Wall Street, I believe our KLCI could re-test this uptrend line again over the next few days. A break of this uptrend line could see the KLCI testing its reaction low of 1320 recorded on May 25. Thereafter, we can expect support from the psychological level of 1300 as well as the KLCI's reaction high of 1285 recorded on Feb 26.


Chart: KLCI's weekly chart as at July 31 (courtesy of Quickcharts)