The KLCI Near The Critical Zone (Major Support) 1,659 Points.

Based on the chart reading, the KLCI is heading to another low as at 14.09.2016. Right now we can see the index just sit on top of the 200 days moving average as we can consider it as a support. Breaking 1,659 points would means that the KLCI might be heading lower.

Right now the Dow Jones is not really doing well after some news pouring out stated that the FEB might raise the interest as in near term. 

Indicators like MACD Histogram now flashing RED color suggest the index is weak and the signal still in selling position. Based on the markets momentum many equities still looks very weak and some even created a new low. 

KLCI Might Be Heading To 1,700 Points.

Seeing from the chart the KLCI have cross over the 1,675 points. It seems that there was no limit until the index reach 1,700 points. The MACD also cross over suggesting that the KLCI will move forward and with the MACD Histogram turning green, the index will have more potential to move higher.

Any Potential For The KLCI To Break Out At 1,675 Points ?

Based from the chart reading, the KLCI now trending at a bit positive upside. It seems that the 1MDB issue didn't bring any effect to the markets. Malaysia people are use to it already. Corruption won't bring any effect to their life. 

 

Last Friday the MACD Histogram changed from Red to Green colour suggested that the market might have some potential to move higher provided the index must stay and cross above 1,668 points and 1,675 points.

If the index manage to stay above 200 days moving average we will see some positive momentum but right now the MACD still at selling signal suggested we need more time to digest or consolidate. 

Don't forget about the Dow Jones index, we might be seeing another records high being create these few days. Any huge movement on the DOW will sure bring positive outcome to the KLCI.

Next Support For The KLCI at 1,644.00 Points.

This week the KLCI closed on a very quiet momentum. From the indicators it appears the KLCI is heading south at these moments with the next supporting lines at 1,644.00 points (50 days moving average). Breaking this point we might be aiming the next target of 1,615.00 points.

The MACD is crossing over indicate the KLCI is weak and the MACD Histogram also flashing RED colour. At these moments we will call it as a correction or consolidating after recent run up but still the index is below 100 days and 200 days moving average.

If the KLCI want to have positive sign and come up from their bear territory, the index need to move higher and close above 1,668.00 points. With so many negative news surrounding the 1MDB issue it is wise able to trade cautiously with careful approach on certain counters which is moving into positive territory.

KLCI Now Look Very Crucial. Maybe 1,600 Points Cannot Hold.

Based on the chart reading, the KLCI have perform the technical rebound. The main resistance was at 200 days moving average which is at around 1,660 points. After touching the main resistance of 200 days moving average the index started to move down. The main support now for the KLCI is around 1,610 points. Breaking this support, we might be heading lower below 1,600 points

 

MACD Histogram indicators showing RED colour stating that the index is weaken with the MACD reading is getting weaker. At these moments the KLCI is trading below 20 days moving average. It is a sign of weakness. Stay out from the equities markets for a while will be a right choice at these moments.   

KLCI Still Below 200 Days Moving Average. Stay At Side Line.

Current KLCI still stay below 200 days moving average. As we can see from the chart, the KLCI has been moving side way for almost 2 weeks. Where was the index is heading to? The indicators are telling us that the momentum is showing strength towards up but the KLCI didn't perform at all.

 

The world equities market especially the world market indexes are moving upwards. Their momentum also showing positive sign with the Dow Jones, Hang Seng and STI also moving up little by little.

 

From here we can see that the KLCI is making a technical rebound but anything can happen in the first place. Stay at the side line before making any decision. As long as the index still trade below 200 days moving average it is advisable to monitor it. 

KLCI Must Stay Above The 200 Days Moving Average.

Based on the Monday closing, the KLCI still stay above the 200 days moving average and still waiting for the 20 days moving average to catch up.

 

At these moments where the KLCI will be heading to ? As long as the KLCI managed to stay above the 200 days (1,670 points) we will still have some chances that the KLCI might be moving higher in near terms but we need more time to analysis the whole trend as well as the world equities market.

 

What do you think??? Do you all think that these markets will move higher??? At the moment the KLCI equities are not moving much. They seems to be laggard and moving side way.

KLCI Need To Stay Above 200 Days Moving Average.

Sometimes when we try to predict where the market is heading to based on the charting but out of sudden the world equities market take a turn and move upwards. At these moments the momentum looks so good with the blue chips counters mostly went up already.

 

As we can see from the chart, the KLCI has surpass the 200 days moving average with an average volume increased. As long as the KLCI manage to stay above the 200 days moving average there is still a chance for the KLCI to move higher but it is still too early to tell but if the KLCI close below the 200 days moving average, it would have a negative impact.

 

Well we still need more times and trading days to determine where the KLCI might be heading to but I'm still not really positive about out political situation in Malaysia with so many foreigner investors still stay away from Malaysia equities market. 

KLCI Might Be Heading South In March???

Judging from the chart scenario, it seems the KLCI might heading towards south due to some political situation (2.6 Billion donation) with the suspension of UMNO deputy president  and the weakness in the world equities markets. 

Last week the KLCI cannot even move much after reaching their 200 days moving average. If we examine most of the equities listed, they are not moving much after they stage a technical rebound for the past few weeks and at these moments they show more bearishness rather than bullish move. 

Right now the MACD Histogram is showing sign of RED color, indicate that the market is weak. Hence a careful approach is needed because I'm expecting the KLCI might be moving side way and move further towards 1,600 points. 

Dow Jones Not Showing Sign Of Continuing Up Trend.

Based on the chart reading the Dow Jones still didn't show any sign of continuing up trend. If we take a look at the chart, each of the high (3 previous high) created for the past two months have not been penetrated.

 

If the last high wasn't taken out, we have to be careful in this new beginning of new year trade. It has been a volatile trading for the past one month with up and down. MACD Histogram just started to flash RED suggesting some weaknesses ahead but it is still early to tell.  

For the KLCI, the indicators reading still look positive. At these moments a correction might set in after some huge surge over the past one week. The resistance of 1,697 need to be taken out before another resistance of 1,727 set in.