Tuesday, June 2, 2009

KL Composite Index Touches Its Critical Level. Any Correction ?

Well this morning the index touches the major resistance level. The index touches the 1,072.07 points, so it is advisable to monitor closely whether the index have the capabilities to build it strength to cross over that level (1,067 points to 1,077 points). Maybe the index will be hovering around a little bit low from that level then trying to build it base before any attempt to move higher.

This will be a crucial time as the index already went up about 38 %. The market will not likely to fall drastically or tumble because the sentiment was very strong. A small correction was likely to happen after the index run up for so many days. But you will never know what would happen to this market after yesterday our BIG BOSS - the Dow Jones Industrial Average break its resistance level of 8,600 points.

Right now we need to monitor closely as our KL Composite Index reaches its hurdle. It maybe good or it maybe bad as well. But base on the current trend and the share prices, it is still look very healthy.

3 comments:

John said...

think we are just faking up for another drop on the market....yes a bull trap.

that guy over at www.forecastfortomorrow.com has been spot on with all of this.

Kingsmen said...

its not only happening in msia...but the whole wide world...this equity mkt run....fund managers are pressing the panic buy button....they are just underperforming the benchmarks now (for the 1st time)...and their investors are calling for their blood.....better to put into fixed income if these fund managers dont do something.

Kingsmen said...

over in msia we are seeing lots of rotational play.....lots of laggards are making a run despite poor quarterly results.....but then some are also chalking up good results too....some of the hkong stocks are about only 20% from their lows.....they are desperately making big waves just to go to the 60% off their lows....look at anton oilfield, hutchtel, golden meditech...just to name a few....lots of good companies with very very low PE in HK....i think its time to hit big in hkong....

hk down 600pts yesterday...and cvm up 50%...1 hkd to 1.50 and today it hit 2 hkd...now thats double wow wow