KLCI Update

The market turmoil continues.

KLCI is now at 859 levels. It looks likely for the index to test the next support at 817.


The technical charts for KCLI are not looking good. The MACD line is still below its 9 day signal line showing a bearish bias. There is no divergence in the MACD with respect to price movement, so it is not logical to expect a sustainable a rebound at this point.

ADX is at value of 55 and with –DI above +DI, it indicates a continuation of the down trend.

RSI is oversold at this level but in a downward trending market, oversold market tends to become more oversold.

KLCI Update

US market tried to overcome from market weakness on Friday. However at the close, it succumbed to market forces and Dow was down 127 points.

At one point, the Dow index managed to put on a gain of nearly 300 points. The optimism could not hold and the index gave back all the gains plus some extra losses to end at 8852.

The KLCI index dropped 14 points on Friday in anticipation of further weakness in the US market. The index gave up all the gains made on the first 2 days of the week.

The index has broken through the 62% re-tracement level and is now heading towards the low of 615 set in March 2003.

The support level is at 860 and 817.