As with other stock market worldwide, the KLCI index has made impressive gains in recent week making it a great start to the year of the water dragon.
The bulls have managed to push the index above its 50 day and 200 day moving averages. The bullish move is confirmed in the GMMA chart with the bullish indication in both the short term traders chart and long term investor charts.
With MACD about to make a bullish crossover pattern, expect the index to show continue strength. Note that ADX indicator is still at below 30 showing that the bullish move is not strong enough for a sustainable trend. So traders do need to be nimble in taking profit and not to be too aggressive to add on to their positions.