Dow Jones Fighting Its Strongest Resistance Level?

Dow Jones Industrial Average has reaches it strongest resistance level of 11,200 points. This time around it is very important to monitor their movement.

Based on the chart indicators it seems that few of the indicators are showing some sign of divergence movement. For me this is not a good sign and we have to be a bit alert. Right now we can assume that the double top was in the making. If the Dow Jones Industrial Average can break their strongest resistance level, it will be a good sign.

How about the FBM-KLCI doing right now? Basically our share market looks quite strong and sometimes no matter how bad the Dow Jones performance is, the FBM-KLCI still managed to show some darling performance. At these moment if we still can make some profit out of this market but for me the volume or the turnover done still not up to my expectation of achieving 2 billions shares per day.

Most of the index link counters are not moving any where right now. Many of them are just hovering around. No doubt we are seeing some new high created every week for the FBM-KLCI but we can see that it is not an easy market to play with. For those who choose to play contra, they will face lots of difficulty because as we can see that many speculation counters are moving rotationally. Most of the time they are moving sector by sector (i.e finance, plantation, oil & gas, etc)

Playing contra will not generate more income because sometimes we win and sometimes we can lose also. Picking up shares will be a good idea to consider at these moments. Remember : any big changes from the Dow Jones will indicate that our technique of trade in Malaysian share market will have to change also (if the Dow Jones having a sharp falls)

Dow Jones Is Reaching Near Their Strongest Resistance At 11,200 Points.

Well ..... the Malaysian share market (second and third liners) finally make its move this week. Overall the sentiment is getting better and better with the National budget announcement just around the corner. The second and the third liners are showing more progress as well with the blue chips shares are in the mode of consolidating.

Turnover or the volume done still looks not big enough. I was looking at around 2 billion shares traded for a day. With the big turnover done, we might have a big Bull Run around the corner. At these moments there isn't any major negative news might occur but a precautions measure needs to be implement towards the Dow Jones Industrial Average.

No doubt the Dow Jones Industrial Average looks very nice but their index is reaching near their strongest hurdle or resistance at 11,200 points. If the Dow Jones manage to cross over that level with huge turnover done then we might have Bullish sentiment around the world equities market. This might help the Malaysian share market to move and break the New All Time High of 1,524.69 points set in 14th January 2008.

If the Dow cannot break that level of 11,200 points then we have to use a different approach to trade with this share market. Hopefully the Dow Jones didn't create a Double Top as there are few indicators showing weakening sign. To cancel that weakening sign the Dow Jones must move higher and higher.

Market Total Turnover Still Not Enough. Lack Of Interest ??????

Well as we can see the Malaysian share market still looks very strong. Even though the index or the FBM-KLCI has consolidated, we still can see the overall share market sentiment still not in a bullish note yet. As long as the FBM-KLCI can stay above 1,441 points, we still have more opportunity to trade. A break from this level, we would have to reconsider our trading method.

VOLUME or the TURNOVER for the overall share market need to be increase in order for the whole sentiments to pick up what has been left out when the FBM-KLCI power up their move for the past few weeks back. With the total volume and the turnover done right now, it shows that our share market was lack of interest from most of the players.

A Billion turnover or volume done still didn't picture that the Malaysian share market was a good market to trade with. We might make some gains out of it but the gains were minimal. For those who manage to hold on to their shares, they are the one who can really make the profit out of it but remember, not every counter is moving up.

If we look closely, some of the counters still moving downtrend even though our FBM-KLCI is moving upwards - the technology stocks were moving against the trend (uptrend). Choosing a right counter will still poised a very important element to survive.

At this moment I like UEMLAND and MRCB as they have the potential to become our new leader in order to bring the whole sentiment and turn the whole share market sentiment into a bullish environment.