Bursa Malaysia Stock Exchange: Profit Taking Is Over?

Last Friday, after about two weeks of profit-taking mode, Kuala Lumpur Composite Index shows a weak  sign  of re-bouncing at the pivot zone around 1,235 pt (see chart below). However, I don't think it strong enough to say that profit taking mode is over. This time it is stronger than previous correction. I expect KLCI will stay in correction mode for more days.

On longer term outlook,`it's still too early to say past days correction as  the beginning for a major bearish trend. We need to wait at least to 1,200 pt level level which is more suitable level to watch for early signal  (1,170 is more significant).  A break down of these pivot/support  level, then we can be very suspecting of.a longer bearish trend.

Much more significant sign is when the current profit-taking is over and how will KLCI climb back, trying to break the resistance of 1270 pt. That high is within significant Fibonacci cluster zone (around 1245). Will it be a lame attempt? Will it be just a short,  weak dead-cat-bounce? Failure to break 1270.44 pt will be a significant signal for persistence bearish trend.

Below: FBM KLCI daily chart FBM-klci
KLSE Construction Stocks in play throughout 2010?