KLSE Brief - Resistance Testing Week?

klse-CISince my last  blog post on klse trend channels on 28 May 09 , there's still no sign of weakness. The sign of lesser volume in the last 2 weeks just showed the fund managers were taking a breather, consider that as the 'correction' or a 'break' itself. KLSE composite index still strong within those trend channels. (see the chart). The narrow plotted trend channels are actually easy to break (down) in many case (to get fast signal) but CI still managed to trending up within, steadily. 

Isn't the current up trend nearly at 45 degree kind of angle? W.D. Gann would be jumping with joy if he see the current KLCI chart . And in physic, they say an object will go furthest when thrown at 45% angle (you learn that from your javelin throwing coach). 

The immediate st resistance (also a fibonacci target) is at 1,110 pt.  The index is at about that level now, means it is testing the resistance. As at time of writing (1,092 pt), the CI still slightly hesitating of breaking out.  Let's see today, how it's going. If it manage to break 1,110 then let's look forward to at least 1,170 pt. Note that these are the short-term targets, there are other much higher longer-term target, but  I expect corrections first before we can look forward to much higher target.