Friday, April 24, 2009

Weekly Analysis

The expected correction has not arrive yet. Today, the volume is amazing! Stocks that you thought are already dead jump to life! Let's us not get into the euphoria...yet!

KLCI Daily Chart

From the KLCI daily chart, 14-day RSI at 81! Very bullish indeed. The further the index go without correction, the harder it will fall. Any possible correction may go to 930 (the breakout point).

KLCI Weekly Chart

From the weekly chart, we can see that this could be the beginning of a new bull market. Possibly the 1st wave based on Elliott wave principle. Based on economic fundamentals, I still think that this is a bear market rally. If this is just big bear market rebound, then a 38% Fibonacci retracement will give the next possible target at 1070. However, the intermediate horizontal resistance is at around 1020. So, watch out at these levels. Don't get too carried away. The rate of ascent is too fast.

Plantation Sector Weekly Chart

The plantation sector weekly chart shows that we have cleared the resistance at 5000. The next one is at around 5300. The chart is bullish. Since I'm mostly long in plantation counters, I do hope that it can hit the downtrend line :p

Finance Sector Weekly Chart

Finance is also bullish, you can see a bullish divergence in this chart. The next resistance is at around 7900, about 300 points away.

Construction Sector Weekly Chart

Construction is also bullish, but it is almost at the resistance line now. The next resistance is at around 210.

Property Sector Weekly Chart

Finally, the property sector. Same bullish story. Next resistance at around 650.

The summary for all the sectors are:
Malaysia Longterm Midterm Shorterm
KLCI Down Up Up
Finance Down Up (+) Up
Construction Neutral Up Up
Plantation Down Up Up
Property Down Up Up
Mesdaq Down Neutral Up
2nd Board Down Neutral Up

My conclusions are:
1. Market is very overbought.
2. Wait for correction to happen.
3. Then, a possible buy because it can go up further.

By the way, I'm not playing penny shares or small capital stocks at the moment. I'm concentrating on CW of bluechips. So, if you are looking for "ideas" in penny shares or small capital stock, this is not the blog for you.

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