Update

On last Friday, the KLCI opened on fear as a result of DJI's fall of 33 points, the fear lasted for only a brief 5 minutes and the index quickly rebounded, showing good resilience and closed the day near the day's high at 1402.25, forming a hammer. The price action of the KLCI showed that the market is not in a state of great fear, and in fact, the smart-money were buying at the day's low, probably in preparation for a run later in the future. The immediate strong support of KLCI is found at the 1380 level. If this level can't hold, one may see the KLCI going down to test 1360. However, from the broader picture, our KLCI's uptrend is still very much intact.
The HSI was showing good support at the 28500 points level, the recent correction was a healthy one despite the hefty fall. I think our local investor must learn to get used to HSI's volatility. The longer term uptrend was intact.




The DJI was not looking good on the short term under the pressure of the subprime loan issue and the high oil price that is approaching USD100. From the chart, DJI had on last Friday closed below the long term 200 day's MA, the immediate support to keep the long term trend of the DJI intact is at the 12950 level, if this level is not defended, bye-bye, and sayonara DJI.


Back to our local market, the plantation sector was performing very well, some of the stocks that are worth watching are CEPAT and TDM. Other stocks like BHIC, TCHONG, JAKS and MPCorp, the uptrend are still intact.












Disclaimer: The above is not a recommendation to buy or sell, all suggestions mentioned are purely for academic study purposes for our trend trader club members only, and the author may have personal interest and position in some of the examples mentioned. Any losses incurred if you were to trade base on the study examples above is sole your own responsibility. Do consult your dealer before taking any action.