Market Outlook as at September 4

Looking at the chart below, I come to the conclusion that our market is poised to commence on its upward movement very soon. This is based on the following observations:

1. The MACD indicator, which had done a positive crossover earlier, has now crossed above the 'zero' line, where uptrend would normally pick up the pace;
2. The stochastic indicator has entered the 80 level, where again uptrend would normally pick up the pace; and
   
3. The index has broken to the upside of the short-term downtrend line (marked as 'a1-a1').

Two more signals may be needed to confirm the beginning of the next uptrend. There maybe provided by the end of today's trading. These would be the surpassing of the current rebound reaction high of 1292 recorded on August 27 (marked as 'A1') as well as the crossover of the slower 20-day SMA by the faster 10-day SMA. At the time of posting this piece (about 10.50 am), the KLCI is at 1293 level. Today could be a very interesting day.

Chart : KLCI's daily chart as at September 4 (courtesy of Quickcharts)