KL Composite Index Must Stay Above 900 Points Level.

How the KL Composite Index doing now ? Base on the latest data from yesterday close, the KL Composite Index still managed to stay away from the critical points level (Parabolic SAR). Current reading shows that the KL Composite Index needs to avoid touching the 907 points in order to stay on course for the rally to continue.

If the point of 907 being touches, it still didn't pose any alarming stage provided that the KL Composite Index manage to hold on at the current level for few days before any attempt to move higher or even move down. I would expect the KL Composite Index to move sideways (consolidation) until Chinese New Year.

With the world financial market still weak and full of uncertainties. Staying at the sideline would be the best strategies to adopt at this moment.

Whether there will be a rally after this Chinese New Year, it would be another matter. The most important element now is people have been going around talking about the Kuala Terengganu parliamentary by-election on Saturday. Whether this by-election will determine the people choices for Barisan Nasional or Pakatan Rakyat ? Some even mention that if the Barisan Nasional cannot win this by-election then the next general election will be a difficult times for Barisan Nasional.

If Pakatan Rakyat manages to win this by-election it would be a disaster for Barisan Nasional because this by-election is being held in Kuala Terengganu and not in Permatang Pauh. So next week results will likely to have little impacts on whether our Malaysia share market will maintain the current levels or move the other way round.