Wednesday, March 18, 2009

Where The KL Composite Index Heading To? North Or South?

Where are we now ? Make your own judgement. Will the KL Composite Index make a u-turn or a trend reversal ? It seems that the world equity market still performs quiet nice but I'm doubt about it. Yesterday I have updated the current KL Composite Index charts and compared with 1997 Asian Financial Crisis charts.

Chart A : 1997 Asian Financial Crisis

We need to examine the current charts movement and compare to the previous 1997 Asian Financial Crisis charts. Some may argue that this is totally out of our mind to compare totally two different crisis. No doubt the two crisis are not the same but the comparison between the charts argue very well with so many similarity until now.

Still remember the article that I have posted on Thursday, February 5, 2009 Where Would The World Financial Crisis Heading To ? and on Thursday, February 12, 2009 Bursa Malaysia Exchange. Stay Out For A While.

Chart B : 2008 World Financial Crisis

Look closely on the mark that I have point out. Point 1, 2, 3, 4, 5 and 6. See also the point that I have set for A, B, C, D and E. If we take a look and compare both of the charts, it shows that there are similarities on the way the charts move.

We are now entering the consolidation move after the selling pour in the early month of March. The index is now trying to move up in tandem with the current world equity market technical rebound. Can we call it a technical rebound or a trend reversal ?

Form Chart A, it took nearly 3 months (from point D - beginning from December 1997 until end of March 1998) and for it to finish its technical uptrend and forming its consolidation move before it move down and create new low.

If we take a look at Chart B, the technical uptrend also took about 3 months (from point D - beginning from December 2008 until end of February 2009) for it to complete before the KL Composite Index managed to break out from its Bearish Rising Wedge and moving south. Believe IT or NOT ? Just believe it.

But one thing for sure this is just a guidance and one of my opinion only. We must not treat it that this case study will happen accordingly. It might or it might not happen in the first place, who knows ? Sometimes we need to have some tools to guide us and to show us the proper projections where the low or the bottom would be?


Anonymous said...

hi there..

may i know what chartin prog u using?

thankz a lot =)

Jackie Lee said...

MetaStock version.

Actually you can use others also. it is just whether that charting programs suitable for your needs or not.

Anonymous said...

Actually you could use Advance GET for correct wave count !

Jackie Lee said...

Thank you for your comments.

Actually I know how about Advance GET works but my numbering inside this article is to show that the movement for both charts almost the same by putting the number and to let the readers know what this article all about.

This article got nothing to do with the Wave Count.