Tuesday, March 31, 2009

KLCI Update


The rally finally came to a stop yesterday. KCLI has broken through its 50 day moving average. It is now sitting at the support level of 867.

Bearish signals include a down sloping 20 day and 50 day moving average. Stochastic has made a bearish crossover and RSI is coming down from overbought levels.

MACD indicator is still above its signal line. If the index is able to bounce off from 857 which is the 61.8% retracement level, there is a chance for the index to test its recent high of 890. And penetration of the 890 level will set us the first Fibonacci objective of 911.

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