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Technical Commentary 4/17/2000


Head and shoulders points to 820 target
The 600 point fall in the Dow brought the head and shoulders pattern on the KL Composite Index to come to fruition. Repeated attempts by stock players to hold the 920 support has failed, showing that in the end fighting technical patterns such as the head and shoulders is doomed to failure. The target is 820, where long term investors will do well to buy around 830 to 840, well before that level. longer term weekly charts show no sign of turnng however. The above scenario would be less probable if in the next few trading sessions, the index can close above the 920 level.