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)