FBM KLCI already rebounded from the support zone around 1,163 pt (7,571 pt for FBM100). I expect it will stay going up in an attempt to break the current resistance 1,196 pt zone (7,862 pt for FBM100).
However, I think its attempt going to fail, thus the up trend would be very short-lived. That is the last call to clear any positions unless you willing to weather the storm coming. The failure to break 1,196 pt will create a micro double top and this will give another significant technical evidence that a major correction is in order. If somehow the index managed to break the resistance 1,196 pt convincingly, then forget what ever I said in this paragraph for a while. Anticipating a micro double-top is a bold prediction, which mean I can easily be proven wrong, say within days and 30 pt difference is no sweat for the index.
The longer term view is far more important, I am still expecting the whole up trend (end of October 2008 to current) will corrected back at least to 1,050 pt zone (6,800 pt for FBM100). It is a typical standard technical correction reading, any up tend will corrected to a certain extend. It is also in agreement with average market P/E ratio analysis : P/E need to go back to say 12 P/E in order to 'correct' itself.
That is what I mean by a major correction is coming. If the index back to 1,050 I think my positions going to be very severed. EPF and PNB should be able to pass through fine, especially with Bursa Malaysia better outlook next year. With limited capital I am not willing to holding on tight.
below: KLSE FBM100 daily chart:
