Sunday, January 26, 2014

Which Way The Market Now

Last Friday, the KLCI closed at 1,802.5 with a small doji. The low of the day was 1,798.57. If the opening price is lower than 1,798.57 which is likely, come Monday morning, the signal is one of extreme bearishness. 

The MACD is looming to go lower as displayed in the chart.  Sentiment in America, notably the Dow index, is extremely  bearish with the latest drop of 318 points placing it at below the psychology level of 16,000. 

For the KLCI index, some support is likely to come in at the 1,792 and at 1780. I believe that they will be breached within the next 30 days. This is just a forecast based on the bearish display of the chart. 

You listen to me at your own risk.