Monday, January 5, 2009

KLCI Update

KLCI closed at the high of 920.66. The next resistance is at 926.65 and 970 respectively.

The technical charts continue to show a bullish bias. The MACD line is currently above its signal line indicating a bullish market.

+DI is still above –DI. However ADX will need to go above 30 soon in order to have a sustainable rally.

RSI is approaching overbought levels. Unless there is a sustainable rally, market will not stay in overbought level for long. In this market, it is best to be nimble and take profit when a danger sign appears. For example the appearance of a graveyard doji, hanging man etc.

All eyes will be on US market tonight to see whether last week’s breakout is a false dawn.

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