Friday, May 23, 2008

KLCI Update


Some danger sign is appearing on the KLCI index. The rebound from 18 Mar has taken us from a low of 1166 to a high of 1305. The rally looks to be running out of steam.

The MACD cut below its signal line on 20 May 08. This suggests weakness in the short term.

The +DI has cut below the –DI line. The last time this happened on 20 Feb 08, the index went down from 1414 to 1173.

The index is also very near the base of the Bollinger Band. If it breaks below 1271, it will be bearish.

Let’s see whether the index can gather enough momentum to break through 1303. If the Bulls are able to push through this level, there will be another rally towards 1437

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