Finally the KL Composite Index takes a rest. Will it be a correction or just a temporary pause ? Well for sure the index won't be going all the way down. The index might be moving up and down before we can confirm that the correction has set in. Dow Jones Industrial Average closed well this morning. Whether the DJIA will help the KL Composite Index to continue their upward this morning would be another question.
Yesterday the KL Composite Index showing an unhealthy sign. In the opening the index jump about 6 points and gain about +13 points and then went down to minus -3 points and managed to closed with a plus of about 4.5 points. According to Candlestick indicator, we call it as a doji (refer here). It is not a good sign but basically the chart want to tell us that the market has already found its top. But this has to be confirm by the today index movement. If the index closes lower than yesterday then the sign should be confirm.
For how long it will consolidate? 1 day, 2 days or maybe 1 week? No one knows? I foreseen there would be another quick play. A contra trading in this few days if the corrections set in. I don't think the KL Composite will go all the way down. Maybe this would be another bandwagon for us to jump in. So beware and have fun during this few trading days because there always an opportunity out there if we dare to take the risk.
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