What Is Happening To Bursa?

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.

1. First Attempt on Tech Analysis Part 1
2. First Attempt on Tech Analysis Part 2

A single chart should sum it up. Bursa is expected to go into some interesting activity in the coming days. First, the 40-50 support line is finally broken and with the MACD divergence approaching centerline crossover further solidifies it. Add on to it, the 12-day EMA has approached the 26-day EMA (bearish > bullish)


What does this all mean?? It means that Bursa should be testing the swing test again. The last test was conducted in June 2010. It the swing fails, Bursa could correct by 100 points (1350 to 1250 last time) and sling back into bullish mode (1240 points to above 1500). If the swing passes, then it is a major correction in sight as I see no trouble in the global front to pin down Bursa into the extremes.

So guys and girls, it will be an interesting day tomorrow and more towards the week ahead. Will the swing test pass or fail? God knows. Cross your fingers if you have been speculating, rest assured if you are a value investor as this is just another emotion driven sell off. Read this interesting article as well: He/She had an interesting chart comparison post CNY.