Market Outlook- Uptrend recommencing...

Yesterday, I had posted that the market uptrend might continue if the KLCI can surpass the 1380-90 level with good volume (say, 1.5-2.0 billion units). The 1380-90 level was chosen because the overhead resistance (see the blue line) was approximately there, and if this level is taken out, the KLCI's daily MACD would likely to have achieved a positive crossover & the 20-d SMA would likely to 'bounce off' the 30-d SMA (instead of doing a crossunder).

Well, as if on a cue, the KLCI put in a very positive performance today by gaining 9.5 points to close at 1386, with a total volume of 1.8 billion units traded. While the MACD crossover is not very clear just yet & the same may apply to the interaction of the 20-d SMA & 30-d SMA, I believe that, in due course, both of these will likely to take place & confirm the start of the uptrend for the market. With this, I believe it is timely now to increase our exposure to equity again.


Chart: KLCI's daily chart as at June 20 (courtesy of Tradesignum.com)