Tuesday, April 28, 2009

Market Outlook as at April 28, 2009

As at 2.40 pm, the KLCI was down 8 points to 972. If this bearish market persists for the rest of the second session, we shall have a loss of at least 8 points for today. If so, we would be sighting a highly reliable bearish reversal pattern known as "three outside down".

Up to this morning, what we have sighted is the bearish engulfing pattern (here) & (here), where further weakness is normally required for bearish confirmation of this reversal pattern. That further confirmation could be considered as satisfied if the KLCI were to lose 8 points or more today.

With this reversal pattern, we can expect the market to slide lower over the next few days.


Chart: KLCI's daily chart as at 27/4/2009_12.30 noon (Source: Quickcharts)

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