KLCI dropped 17 points to 1230 at 4.00 p.m.

Our KLCI, which has been going up in a very steep uptrend, has finally succumbed to profit-taking today. The sell-off was probably brought on by a sharp 3%-drop in Shanghai Stock Exchange's SSECI in the morning session. Ironically, the SSECI has made a strong recovery in the afternoon to register a gain of 1.1% at 3.00 a.m. ET (see Chart 1 below). The same cannot be said about the rest of the regional markets, which were mostly down by about 0.7-1.0%.


Chart 1: SSECI's intra-day chart for Mar 28


For our KLCI, the immediate uptrend line support at 1235/40 was broken. I see horizontal supports at 1220 & 1215 as well as at the important psychological 1200 level (see Chart 2 below).


Chart 2: KLCI's daily chart as at Mar 27