KLCI : Short term and Mid term collision

Short Term and Mid Term collision
Fate of KLCI rests on its MAV lines

The Dow Jones Index rebounded strongly off its October low/support of 7,882 last night, due partly to a positive Home Sales Report. The strong rebound especially off its 7,882 low which gives the impression but not necessarily mean a double October bottom in the Dow, will lead to a global rebound in markets today.
KLCI : Short term and Mid term collision
The KLCI today will rebound following a strong 141 point rebound in the Dow Jones tonight. Essentially, the fate of the KLCI will depend on its short term and mid term MAV lines. Looking at the chart below, the Mid Term MAV line seems to be on a collision course with its Short Term MAV line. This probably means that the KLCI is poised to decide on a major direction soon.
If the KLCI’s Short term MAV line can cut above its Mid Term MAV line, it would be a short term bullish continuation sign. In addition, if the KLCI can break above the Short term resistance of 889 as well as its Mid term resistance of 900, it would signal the continuation of its Bear counter-trend rally.

Strategy : Watching the MAV lines
We’ll be watching the KLCI today to see if it can break above its Short Term and Mid Term MAV resistances today. If the KLCI succeeds in doing so, it could mean a continuation of the bear rally.

HAPPY INVESTING & GOODLUCK2ALL