Thursday, June 5, 2008

KLCI Update

KLCI closed 1253.12 points on Wednesday. With the Government removing the subsidy on fuel, the market reacted negatively in Thursday morning trade down more than 37 points or 3.02%.

The index is now sitting at the pivot low of 1216.38 set on 7 Apr 08. If this support cannot hold, the next one will be at 1166.

The indicators do not look good either. The –DI is now above the +DI and ADX is increasing. MACD indicator is also showing bearish signs. The RSI indicator is indicating that the market is approaching oversold level. But if a downtrend develops and the ADX goes above 20, then the market may remain oversold for a longer period of time.

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