To Accumulate Or Not ? Dow Jones Eyeing Profit Taking ?

Watching from this morning share market behaviour, I think that our Malaysia share market are behaving just like how they behave during their recently run up in the month of April, May and June.

They look so strong even the FBM-KLCI experiencing some profit taking activities. Usually when the FBM-KLCI is resting or consolidating, second liners and the third liners counters will take over the share market performance. Right now is the hardest part to consider whether to build up our position or not?

As we can see based on the Dow Jones Industrial Average chart, the DJIA has gone up for 6 days (about +700 points). Even though the DJIA is already moving up from their lowest point, still we need to monitor these few days whether the main resistance can be taken out in order for the DJIA to sustain and stay above 9,000 points level and higher towards the 9,600 points. Usually whenever they reach the resistance level, they will take a pause before any new attempt to breaks the hurdle.

Profit taking activities will emerge after recently strong run-up but with the volume build up for the DJIA, there is a possibility that the profit taking activities will be well absorb. How our FBM-KLCI will fare it if the profit taking activities emerge? Was it a right time to accumulate? Whether it is a right time to accumulate or not, selection of the right counters will be the main priority.