Next Stop : 1165With significant and credible buying volume coming in yesterday, it is obvious that the bulls are in full control of the proverbial steering wheel while the bears take a back seat and witness the current bullish fireworks.
Where is the next major resistance for the KLCI?
The next major resistance stands at the 1,165 level which is formed out of thelows of March 08 and the highs of July 08. However, it should be noted that it is harder to gauge resistance levels now that the previous KLCI’s 100 stocks index has morphed into the current FBM-KLCI’s 30 stocks index with different sectoral weightages.
Optimism prevails that our FBM-KLCI will reach this 1,165 target level in the shortto mid-term (1-3 months).
Strategy : Bullish but looking for entries at weakness
We are bullish of the KLCI but are concerned that the Dow Jones may be
marginally overbought (7-Day RSI :70%) in the short term. We advice traders to take a more opportunistic stance and look for trading entries at weaknesses or marginal market corrections.
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