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Disclaimer :We shall not be liable for any direct or consequential loss arising from any use of material contained in this publication. The information contained in this report is based on data obtained from sources believed to be reliable and opinions formed are from belief of the individual author. The Publication should not form basis to be relied upon in decision making. Any future outlook,forecasts or any future interpretation are in no event guaranteed and are merely opinions and views of the author.

Friday, 24 January 2014

KLCI DAILY 24 JAN2014

KLCI INDEX                                                                                                                         Hafiz Rusli
Index Analysis
Based on the daily chart, long term uptrend still intact as the index still hovering above uptrend line. However correction can be seen on the opening of 2014 specify the end of window dressing activities. The artificial rally in November and December lead to heavy profit taking in the month of January. The correction will
lead us to the fundamental value of the index. RSI pointing down heading to oversold territory indicates selling pressure still strong. While on the DMI, the upward momentum of D – (bearish) is not supported by ADX line, it indicate the bull still hold the line. Support at 1800 level believe to be strong and penetration of 1800 psychological level specify that the bear is in control.

Trading strategy
From my point of view, buy on dip is the best strategy for long term investor. Wait until correction phase is over before enter. Use RSI, Volume and candlestick to confirm the rebound.

Projection
Resistance – 1882 (all time high)
Support               
1.       1800 (psychological level) Red line
2.       1780 (significant level of support) Yellow line

3.       1720 (resistance turn support) Peach line
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