Based on the chart and indicators reading, the Dow Jones Industrial Average might be heading for "Big Correction". After few months of speculation, it seems that the Federal Reserve is going to raise the interest-rate in near term.
If we examined the chart the DJIA is creating "Lower High" and "Lower Low". This is really a bad sign and the index also stay below SMA of 20 days, 50 days, 100 days and 200 days. Well prepare for this slaughter. It might be around 10 to 12 percent correction in the process towards 16,300 points (plus minus).
What will happen to Malaysia KLCI index? Right now it is a bit hard to know where our index is heading to due to uncertainties geo political situation surrounding the country. With the world oil prices tumbling and also the ringgit, I didn't see any good outcome in the near term.
Based on the chart if the KLCI managed to cross and stay above 1,736 point, we might have a chance that the index might try to climb towards 1,780 point (200 days SMA) but if we take a closer look, it seems the KLCI is moving side way.
With the DJIA showing more weaknesses, we have to be careful because any sharp drop on the Dow Jones, we might see the KLCI will follow through and move towards south.
No comments:
Post a Comment