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Technical Analysis - KLSE CI
your feedbackUpdated on Friday March 17, 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
No rally is confirmed yet. Further cut loss point is 920. In case KLSE CI may go down further, 876 is the support level for quick technical rebound (could be a better quality one).
KLSE CI is still below the
greenline (rb rally entry indicator, a modified trendline) and thus no uptrend is confirmed yet. Without breaking above the greenline or 1013, KLSE CI is not confirmed yet to be in rally, though certain stocks may look bullish.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 950KB)
Theoretical discussion on these indicators
Chart pattern: head and shoulders (short-medium term)
Earlier "head & shoulder pattern" is cancelled because KLSE CI managed to rise back above earlier neckline of about 922. Even though the "head & shoulder pattern" with target towards below 900 (target 827-862) is not confirmed yet, the critical level to watch out for is about 920.
