Friday, September 16, 2005

Weekly Analysis

Weekly Chart: Weekly MACD turns negative! While weekly EMA still negative. Now the negative MACD worries me. I have gone through the chart and history shows that when it turns negative, more downward move is going to happen.

Daily Chart: Downtrend channel broken in daily chart. Daily EMA lines show that they probably won't converge and diverge! If they don't do this, then my analysis shows that any up move will not be strong. Daily RSI is slightly below 60. However daily MACD is positive.

Conclusion: Patriotic fund managers are pushing up the index for Hari Malaysia. Any up move will not be strong as the weekly MACD is contradicting with the daily MACD. Maybe a correction first for the next strong move.

Now, my Elliot Wave knowledge is not that good. But IF I am correct, we may see the end of wave 2 and more agressive wave 3 selling. Maybe I'm wrong kua.

Disclaimer: This is a non-professional opinion only, please do your own analysis before making any decision.

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