Sunday, May 3, 2009

Will Monday The KL Composite Close Higher Than 996.60 Points ?

These two days I have been attending a course to enhance my skill and knowledge more about trading in the share market. I did gain something from that course. Although I know few of the technical analysis and the candlestick reading, still I need to attend in order to guide me and understand more about certain rules ....

During my first two days attending the course, there were about 30 participants attending the course. Many of us are start asking the same question. What would be the next course for KL Composite Index ? What would happen to Dow Jones Industrial Average next week ? These questions are just like a million ringgit question.

If you got it right then you will be making lots of money but if you get it wrong, then everything will turn out like a burning paper. Frankly no one knows the answer, many of them are using charts and tools to anticipate where would be the next level for the KL Composite Index and DJIA.

In my point of view, Monday will be an important level for the KL Composite Index to decide. If the KL Composite Index manages to close above 996.60 points and making new high, the possibility that the trend will continue is very high. Recently we know that the world equity markets are moving up with an anticipation that the DJIA will perform for the next two days beginning from last Thursday and Friday but it didn't. On charts wise most of the world indexes look quite beautiful with many of them are showing positive sign after going for correction or been consolidated for few weeks.

With this sign, they are showing more sign to move even higher and for the Dow Jones Industrial Average, the Friday closing did bring some jeers as it managed to cross the 8,200 points and close above it. But there is one disadvantage when the DJIA crosses its breakout, the volume traded didn't support the breakout and it is likely that the DJIA might not stand at that level for long.

Next week on Thursday the "Stress Tests" report from the banks will be out and the outcome will definitely not be as good as we can think of. A report that should be announce on coming Monday have been postpone towards next Thursday. A delay in the reports will means that the new is not encouraging. So next week DJIA movement will be limited or we can say that they might be moving into a range trading until Thursday "Stress Tests" report come out.


alexlee said...

Higher probability is "Yes" to your question but upside gain is very limited due to technically it should "rest for a while" in order to climb further in near terms.

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