890 broken >>> Plantation stocks might be next to lead down-wave

890 broken
Plantation stocks might be next to lead down-wave
Following the negative GDP news in Malaysia and US, the KLCI has finally convincingly
smashed the stubborn 890 support level. With the KLCI’s GMMA starting to show bearish
divergence and the index now being short/mid term bearish, we expect more downside in the next few weeks with the KLCI expected to drift towards the zone supported by the 835 level.

The Dow Jones : Approaching 11-year low

The Dow Jones’ bearishness can be partly blamed for the KLCI’s negativity yesterday as
well as for the coming few days. The Dow bears have been on a tear and have been
exploring new lows. With the Oct 97 low (7,161,1) smashed convincingly yesterday, the
Dow’s will pay a visit to the April 97 low (6,391.6) soon.

KLCI : Plantation to lead next drop?

With the KLCI breaking below the 890 support and also braking below the bear uptrend line, the bears are now in control of the KLCI. To make matters worse, plantation stocks which feature heavily in the KLCI Index, are in the process of establishing lower highs which denotes a downtrend in the making. With such bearishness in the Dow Jones and the KLCI, we see the KLCI been dragged downwards by plantation stocks and dropping to the next major support at 867 very soon.

We see the KLCI breaching the 867 and reaching the next level of support at the 835 level soon. If this level fails to hold, then the bears will be knocking at the doors of the October low of 801 shortly. Local investors are advised to not try to bargain hunt in such a bearish KLCI.

HAPPY INVESTING!!!