Technical indicators are lagging indicators and therefore I always look back at the previous week for recent market direction into the coming week. In this case I am using WW39 for this week's WW40. I hope this clears the air. For those who find it hard to follow I suggest reading through my previous posting on how I am using technical indicators as a trend seeker.
Relative Strength Indicator (RSI)
Chart Setting: SMA 1, RSI (14, 20), Mar'10 to Sep'10 |
Moving Average Convergence Divergence (MACD)
MACD line just touching 20 though KLCI still far from the centerline and no crossover, it is difficult to know the trend just yet. The government has just unveiled the Economic Transformation Plan (ETP) but investors don't look like buying into any of the plans considering the market's performance. Click HERE to understand more.
Resistance and Support Level
Chart Setting: Mar'10 to Sep'10 (6 months) |
New resistance now set at 1480-1500 points while support level is now at 1440-1420 points (previous lower high still unbroken).
In a Nutshell
Finally I have been vindicated after many weeks. Correction looks plausible unless there are good news to support the points. I would seriously stay on sidelines for now, watching first before pouncing on certain counters that are deemed fairly valued or under valued like PARKSON, BSDREIT or JOBST. I also hope there is opportunity to get F&N but that seems slim until an actual bear takes place.
One Month Trend Chart *Tech indicators are lagging charts |
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