CI may be testing its short-term uptrend line at 1087 & its 10- & 20-day SMAs at 1085 & 1066, respectively. At 3.00 p.m., the CI is at 1089.5.
Chart 1: CI's daily chart as at Dec 11
Second Board has broken below its short-term uptrend line at 91.5 & its 10- & 20-day SMAs at 92.3 & 91.2, respectively. At 3.00 p.m., the Second Board is at 90.9.
Chart 2: Second Board's daily chart as at Dec 11
Mesdaq has broken below its short-term uptrend line at 118.5 & its 10- & 20-day SMAs at 118.5 & 119.0, respectively. At 3.00 p.m., the Mesdaq is at 117.5.
Chart 2: Mesdaq's daily chart as at Dec 11
Based on the above, I would advise caution in the days ahead as the market may need more time to digest the excess of the past few weeks.
Note: Wait & see whether the CI can hold above the 1087 level. If it can do so, the chance of a rebounce is higher. Otherwise, the consolidation can drag on much longer... (updated at 4.20 p.m.)
3 comments:
Hi Alex, what if the above 1087 level is maintained by artificial means? You know the last minute "magic" push up that we have seen so many times in the past.
Yes, that may happen for a short while but on the long term, this force cannot maintain the market artificially. After seeing the break of the uptrend line in Second Board & Mesdaq, the breakdown of CI is likely to follow.
Thanks. You're absolutely right judging from today's further retreat of KLCI.
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