KLSE’s move is not clear now, it is doing side-based movements. Some technical indicators are indicating that it is not in a overbought condition. It is moving with 50 day EMA. This is important to see that whether it breaks 50 day EMA.
It’s 100 days EMA is at 1510 level, is acting as good support. If it breaks the 100 day EMA then it will find solid support at 1480, which it has not able to break in last 6 months. But it looks to me that if it comes in 1480 level then it will make a bearish pattern. As you can see it in the chart. Though the pattern has not completed but there is a probability.
Now I want to compare the movement of KLSE with JKSE. JKSE’s movement in April was better in the upside.
As we can see in the chart that JKSE is carrying its up move since mid February 2011. But when I see the KLSE’s chart it is completely different picture.
KLSE is completely under pressure from the beginning of April. It even struggling to break 1530 level now.
Within certain days it will be sure whether KLSE is going to make the bearish pattern or not. Suddenly if there is a change in economic scenarios of the world and markets start to rise again, then eventually we may see a rise in KLSE but there will be resistance around 1560 and better one at 1580. If I have to choose one I will definitely choose the bearish pattern. But sometimes things don’t go in same way as it needs to go.
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