|
|Home|Sitemap| > Technical analysis > KLSE CI 15/3/00 |
Disclaimer: The information has been obtained from sources which the writer believes to be reliable and analysis are done in such a way deemed proper by the writer. The writer does not guarantee the accuracy or completeness or reliability of any information and analysis in this website. No liability can be accepted for any loss arising from direct or indirect use of this website. All opinions, estimates and analysis expressed herein reflect the writer's judgement as of this date and are subject to change without notice. This website is for the information of surfers and subscribers only and should not be construed as an offer or solicitation for the purchase or sale of any security or futures contracts. The writer may have an interest in the securities or futures contracts or the markets mentioned herein. By visiting this website, you are deemed to have read the above disclaimer.
Technical Analysis - KLSE CI
your feedbackUpdated on Wednesday March 15, 2000
see also statistics on klse ci's past ralliesTrendline studies
There is no sign yet that KLSE's bull market from 1/9/98 at about 260 has ended. Longterm upward trendline is still not broken to the downside yet. For information, STI (Singapore's Straits Times Index) has
broken its longterm upward trendline to the downside. STI is much bearish in longterm view, but in medium and short term view it could still be attractive enough for long position players. In view of the fact that KLSE market had in these few years always lagged behind leading Asian markets like Singapore, Hong Kong and Japan markets, it is worrying that KLSE may one day follow STI. This is warranted by fundamentals as the momentum of interest rates now is upward.Internet stocks may be not join this possible bearishness because firstly, internet stocks rely on capital market to raise fund more than bank loans or anything else, secondly world's number of internet users could be increasing at an accelerating rate and so are the level of innovativeness. More and
more companies see e-commerce as a neccessity rather than a choice and they just can't wait to jump into it.While major index had been a good reference for general market's movement, recently there had been a
great divergence of movement direction between technology/internet stocks and conventional stocks, e.g. Dow Jones had been showing weaknesses for more than a month but Nasdaq kept on recording new high.
Writer's own customised indicators
Cut loss point of 922 is broken to the downside. Downtrend is further reconfirmed for the broad market with the exception of a handful of red-hot internet/technology/telecommunications stocks. The broad market may move along with KLSE CI towards below 900 level. Support level for quick technical rebound (suspected to be a better quality technical rebound) is about 876.
KLSE CI is still below the
greenline (rb rally entry indicator, a modified trendline) and thus no uptrend is confirmed yet. The above bearish count will be looked at with suspicion if KLSE CI manages to break above 922.While major index had been a good reference for general market's movement, recently there had been
a great divergence of movement direction between technology/internet stocks and conventional stocks, e.g. Dow Jones had been showing weaknesses for more than a month but Nasdaq kept on hitting new historical high.Download auto-calculation spreadsheet programme incorporated with these indicators (about 1MB))
Theoretical discussion on these indicators
Chart pattern: head and shoulders (short-medium term)
"Head and shoulders" neckline at 922 had been broken to the downside and this confirms the pattern. The downside target is 831-865, unless KLSE CI rises back above 922 again then this pattern will be negated/cancelled. The broad market may be bearish except some red-hot "new economy" stocks.
