KLCI index closed at 1184 points on Friday, the highest since June 30, 2008. The question now is whether this uptrend will continue or will we see a down swing that will take out the lows made in March 2009.
The index is now above its 50, 100 and 200 day moving average. And all three moving averages are increasing. This shows the strength of the current up move.
The MACD indicator is moving down and looks set to cut its signal line. If the crossover occurs, it will mean weakness in the short term. However, given the fact that the index is still above its up trend support line, “Bullish” investors are still in safe territory.