Since I came back from my trip to Huangshan the market has not been performing well. Short term players has been selling ahead of the national election on 8 Mac 2008. The overall market trend has turned bearish with a broke down on the neckline of the Head-and- Shoulder chart pattern. Daily volume traded has shrunk to an average of 600 million shares which indicates lack of interest in the market. On the moving averages, the short term 30 days MA is pointing south, and the CI is closed below the long term 240 days MA indicating strong bearishness. In view of that, the CI may move further down to test the 1300 psychological support, if breach, it may visit the important the 61.8% Fibonacci retracement level at 1287.The general direction of the KLCI will be very much influence by the performance of the DJIA, which is probably in the base forming stage. The 12,000 mark is a critical support for the DJIA, if breach, DJIA may plunge another 360 points down to the 11640 level.
Despite the bearish market sentiment, there are a few counters that are showing support by the market, perhaps one can look at them from longer term perspective, they are Proton, Maybulk, BJLand, BJcorp.
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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