Wednesday, February 21, 2007

Market Outlook as at February 21, 2007

Today, the market put in an awesome performance, with the CI gaining 16.13 points to close at 1278.22. With volume traded of 4.7 billion (another record), the market finished the day with gainers outnumbering losers 975 to 131.

A look at the monthly chart below shows that the CI is now at the February 1997 high of 1278/79 level. If the CI can surpass this level, it may revisit the January 1994 high of 1332. However, I believe the 1278/79 level will be a strong resistance & the market may not be able to breakthrough this resistance on the first attempt. A failure to do so could set the stage for a correction of the market's recent sharp run-up.


Chart: CI's monthly chart as at Feb 16
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2 comments:

  1. limandpgWednesday, February 21, 2007 10:52:00 PM

    Dear Alex, Thanks for your hard work to publish your good investment ideas on your blogspot. I am benifited a lot. As Maybank result[within my expectation] was released tonight, do U think that market may use maybank [push up RM 0.50-0.60] to breakout from 1280 at single attempt?

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  2. Alex LuFriday, February 23, 2007 3:43:00 PM

    Sorry, I did not post any comment in reply. A good news that moves up the share price of a heavyweight, such as Maybank, may have a temporary effect on the market. I do not, however, believe that the effect can change the course of a market. Certainly, not a market with trading volume such as now.

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