The gaps refused to be closed. KLCI is moving up higher each day and approaching the 70s region.
Some analyst give a target of 1400 for this year
Well, looking at the monthly chart, this is my outrageous interpretation.
Warning: You are reminded that the eye will see what the mind wants to see. I'm not a professional analyst. This is just an amateur attempt to pass some time.
So looking at the chart, I see a symmetrical triangle formation. The breakout from this triangle occurs about 2/3 from the centre of the triangle. According to the triangle theory, this is a strong break. However, due to rumours, Yen-carry trade and subprime fear, we can see that the index tested the upper resistance/support of the triangle and bounced from it. So the break is valid.
Now, if I consider the start of this triangle which is the low of 300, draw a line to upper resistance of 1200, gives a total difference of 900. According to triangle theory again, the upside projection when the triangle is broken is 1100 + 900 = 2000!
That's it, my prediction for the next 6-18 months, the KLCI value is 2000. When? I don't know. If it didn't reach 2000 in a year or two, nobody will curse me because most of you will have forgotten. Even I would have forgotten :p But if it reaches, maybe someone will remember and think that I'm Bursa God :D.
P.S. If the foreigner keeps pushing due to the appreciation of the Ringgit, this may come true after all.