Friday, July 24, 2009

Weekly Summary

What a week! It's like launching a rocket into space. KLCI pretty overbought now. Look for support at 1100. Currently, it is at the door step of resistance level 1160. Next resistance could be at 1300 level. Looking at the KLCI weekly chart, no bearish divergence in the RSI. However, MACD looks weak - a red flag. Anyhow, there is a gap at 1190 level, will it be closed?

KLCI Weekly Chart

The summary for the rest of the sectors:
Malaysia Longterm Midterm Shorterm Note
KLCI Up Up Up Overbought.
Finance Up Up Up Overbought.
Construction Up Up Up Should have more room up.
Plantation Up Up Up Should make big move soon.
Property Up Up Up Waiting for big move
FBM Mesdaq Up Up (+) Up (+) Will challenge the previous high
FBM 2nd Board Up Up Up Going into overbought zone

Finance is the strongest of all the sectors. Maybe next week is contruction, plantation and property play.

As fast I have sold out, I had to buy back (some at higher price) because the set up was just too good and cannot be ignored. Some have not move yet. So, I'm keeping my fingers crossed.

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