Market Outlook as at March 24, 2008

On March 21st, I have commented that a fat pitch is likely to come our way soon & we may swing for the fences. How far could this market run? I think the immediate resistance would be 1251, which is the high recorded on March 12th. The market may surpass this resistance & close the gap at 1277-80. Thereafter, the market may test the psychological resistance of 1300.

On the downside, I expect support at the psychological 1200 level and thereafter at the recent low of 1157 recorded on March 10th (marked as 'A'). You can see that the KLCI did a 'Test of the Low' on March 18 when it recorded a low of 1167 (marked as 'B'). The failure to make a new low & the subsequently recovery are positive signs for our market. I shall treat the March 10th low as an 'internal' low and hopefully a low that will stand up in the event of subsequent downside retest.


Chart: KLCI's daily chart as at March 24, 2008 (courtesy of Quickcharts)

Note: As at 9.30 am, the KLCI has gained 17 points and stood at 1218.