Based on the charts, the KL Composite Index still managed to hold on the supporting level of 963.29 points when the index close yesterday at 970.19 points eventhough the index created new low at 959.49 points.
If we take a look on the charts and based on my drawing, it seems to be the Index is near to the bottom and might start to rebound.
Take a look at Point A, Point B and Point C. Please watch number 1 and 2. Any similarity ? Whenever there is a sharp drop in KL Composite Index during that time(refer Point B,1) the index will recover for few days before went down again.
After a period about two weeks when the index reach the bottom (refer Point B,2) it will start to climb back again but now, where is the bottom ? The index might either go down a little bit more (refer Point C,2) or stay sideway before the index start to climb up again. Don't be surprised if the index might touch 1,000 points again.
As I use to mention, this is just my own points of views. It cannot be consider accurate. It was based on my charts reading method. But lately the market react so negatively until what ever tools you use on the charts to find any rebound, the answer still the same - the market still heading south until we lost our confident towards the market.
Further because of global financial crisis, anything can happen in the overnight like what happen in Iceland country. Their country might be the first national country to declare bankruptcy if they cannot obtain any loan from Russia.
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