Tuesday, July 08, 2008

Market may have hit a temporary bottom

The KLCI was trending lower since May 20th. This downtrend took a sharp turn for the worse in early July- coinciding with a political crisis locally. The market is now deeply oversold & a short-term rebound rally could take place. It is too early to say whether we have seen the worst, which I have serious doubt, but we could well have seen a temporary bottom. A decent rebound could send the KLCI to 1200 level. Along the way, it would encounter resistance at the recent gap-down level of 1145 as well as the previous March low of 1157.


Chart: KLCI's daily chart as at July 7th (source: Quickcharts)
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2 comments:

  1. WYWednesday, July 09, 2008 2:19:00 AM

    Hi,

    Just found your blog. I am a budding investor (whose professional practice has nothing to do with the stock market).... thanks for the nice short insights. Your trend chart from quickchart is certainly handy. is it a free service?

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  2. Alex LuWednesday, July 09, 2008 8:57:00 AM

    Hi wy kam,

    Quickcharts is not free. For free web-based charting, you may like to check out Tradesignum (go to http://www.tradesignum.com/PublicChart.aspx).

    ReplyDelete