KLCI DAILY 18 NOV2013

KLCI Index                                                                                                                                Hafiz Rusli

Index analysis

Based on the daily chart, uptrend is still intact as the price managed to stay above uptrend line. RSI hooking up indicates that the buying pressure overwhelmed selling pressure. MACD shows a positive sign as the valley turning  green from red. Based on these indicators, I believe that short term rebound is

imminent. In addition, piercing line candle can be noticed on the latest trading backing my statement on the rebound. However, trader need to be extra cautious due to the existence of volume divergence that may initiate the pullback before year end window dressing activities. Failure to stay above support zone of 1770 level will lead the index to test another support at 1760 (38.2% Fibonacci retracement level).

Trading strategy

Since short term rebound is imminent, investor may ride the rebound cautiously with tight stop loss. Swing trader may start accumulating as the year-end rally (window dressing activities) just around the corner.

Price projection

Short term          Resistance 1822 (previous high)

                         Support       1780 (immediate support level)

Medium term    Resistance 1900 (psychological resistance level)

                        Support  1760 (38.2% Fibonacci retracement level)