Saturday, July 5, 2008

KL Composite Index showing sign of Strength ?


Yesterday the KL Composite Index went down as low as -33.75 points to 1,119.97 points (day low). Within one hours of evening trading, the index manage to crawl back to -15.67 points at 1,138.03 points (day high) before close at -19.56 points at 1,134.14 points.

The index has falls for six trading days since 1,209.11 points (index closing on 25.06.2008 ) to 1,134.14 points (index closing on 04.07.2008). A drop of -74.97 points. From the last high of 1,302.83 points (16.05.2008) to yesterday low of 1,119.97 points. A drop of -182.86 points.

The charts of KL Composite Index show that the Index has been oversold. A rebound for the Index is getting a clearer picture with recommendation of short term play. Whenever the indicator of RSI index (relative strength index) crosses to an oversold position and with exact timing, chances for making money is there.

A review on the KL Composite Index charts shows that from the 4 circle drawn on it, a rebound is likely to happen. If we look at all of the active listed company share prices, they had fallen to an oversold position. To the conclusion based on the chart, there is a very low possibility for all the counter to go down further with an upside percentage of going up is very high (rebound – short term play).


Latest development : Private Investigator P. Balasubramaniam decided to withdraw most of what he had said about Datuk Seri Najib Tun Razak links to Altantuya Shaariibuu. He withdraw his first statutory of declaration about Datuk Seri Najib and make a second statutory declaration to clear Datuk Seri Najib that he didn’t even involve in any of this allegation during his 10 days as a private investigator to Razak Baginda. What a setback to Datuk Seri Anwar Ibrahim.

An indication to support further for the KL Composite Index to stage another rebound ? Well we will know when the market open on Monday and whether the index can sustain at this level or not or maybe it will further create another new low in the coming weeks ?

Photo : U-Nee or Lee Hye-ryeon.

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