Despite the fact that the previous week was a down week for the DJIA, our KLCI walk a different way. The KLCI weekly chart formed a bullish harami candle, indicating hidden buying strength.On Friday, the DJIA was down 121 points, but it did not really affect our market yesterday, the CI was down only for five minutes and it recovered very quickly into the positive territory and was going sideway most of the day, and a last five minutes work brought the CI to close at the highest level of the day. Volume traded remained low in the 500 million shares region. Most retailers are still having fear, and the big boys are slowly accumulating quality stock.
The strong plantation and steel sectors has help to move the CI up.With these two sectors remain strong, it is expected that CI may move forward to re-test the 1300 resistance. If it can break and remain above the level, the next target will be the 1340 long term resistance.
As for the DJIA, it has been on a gradual uptrend since March 11, the short term is positive and the medium term MA has also turn upwards indicating the worst of the sub-prime issue is probably over. 12,760 is an important resistance turn support level.Back to our local front, many of the lower liners are also beginning to turn active, indicating the big players has accumulated enough for the short term and is getting ready to push up for unloading, as long as one can read the big boys movement through the chart, we can benefit from their actions.
Some of the stocks to watch: Kencana, Sapcres, Lion, Huaan, Evergrn, Zelan, Masteel, Kinstel, Pmetal......
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 solely your own responsibility. Do consult your dealer before taking any action.
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