Sunday, August 21, 2005


Looks like the BMCI (KLCI) index is rebounding as shown by the 14-day RSI (where the RSI downtrend channel has been broken). If the uptrend continues, then the next target will be >960 (predicted using Elliot Wave - wave no. 5). Is this the pre-budget rally? The strategy is to sell into this rally as prolong downtrend is expected until Nov-Dec period.

If it is only a small bounce, then 930 will be a resistance and may be the point of continuation of downtrend.

Let's see what will happen next week.

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