The KLCI, closed at 859 today, which is above the 200 day moving average This puts the CI on a bullish footing. Look for bullish conditions in the weeks ahead. However a caveat is that it must hold above the 200 day moving average.

Technical Commentary 6/16/2000

The KLCI closed below the 200 day simple moving average indicating further losses ahead. The head and shoulders pattern noted on 17 April panned out quite well, despite attempts by certain parties to "confuse" the technicians.

Indications are that the index could languish below the 200 day moving average for some time.

 

Technical Commentary 6/5/2000

KLCI closes above neckline of 920.0, a good technical sign

The KLCI closed above 920.0 last Friday, negating the bearish head and shoulders pattern. Next week will be crucial. If the weekly close is above 920.0, then bullish conditions are indicated.

The F8 Indicator is also showing signs of flattening out. If it turns up next week, then bullish conditions will return to the KLSE in the next few weeks. (see chart)

 

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.

Technical commentary 12:45pm 17 March 2000

This is an example of the F8 system in action when used in conjunction with other indicators. The following is a 60 minute chart of the futures. The area in question is marked by the rectangle and the "F8 Buy". This signal was generated at 4:00 pm on the 15th of March. March.

Notice the good setup for this trade with the RSI and momentum indicators showing positive divergence. The result was a trade that gave a nice profit of more than 15 pts.

Technical commentary 12:45pm 14 March 2000

Weekly KLCI chart shows the bear trend is in place. The F8 indicator turned down the week ending 25 Feb 2000, where the CI was at 1007.62. Today the CI stands around 919.82 at 12:45 pm. F8 is a reliable indicator for weekly and 60 minute charts. Wait for a turning point for a "buy" signal for stocks. A similar signal was given the week ending 17 Sep 1999 and 22 Oct 1999 where the CI was at 713 and 739 respectively.

The confirmation of the trend will be when F8 cuts above its own 5 week moving average. The last bullish crossing was on the week ending 3 Mar 2000, where the CI was at 948.31. This signalhowever is lagging in nature.

Given this scenario, our view of a further fall to 880 is reinforced. (see previous commentary)

Technical Commentary 3/10/2000

The area delineated by the ellipse shows a key reversal pattern on 3/8/2000. The market reacted to NY fall of 3% but managed to pare losses to close above the previous day's high. This signals the completion of the a wave of the corrective 4th wave pattern. The b wave now should take the CI to the 775 to 785 level with a c wave decline to the 880 region. Low volumes on this rally also signal the possibility of a right shoulder forming, which supports the hypothesis of a medium weakness in the CI. The MACD however has touched zero, giving longer term investors a window to buy and hold blue chips.

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