Market Outlook as at July 31st, 2008

Our KLCI has tested its immediate downtrend line resistance at the 1165 level. The latter is also a strong horizontal resistance. In a present listless market, it is likely to fail on this first attempt and it may then enter into a short & shallow correction. I believe the KLCI would be well-supported at the 1148-50 level. If this level is violated, then the next support would be at 1120.


Chart: KLCI's daily chart as at July 31st (source: Quickcharts)