KLSE Composite Index - support & resistance chart (click the image for enlarge)KLSE Composite Index has successfully broke 915 pt level, an important short-term bullish breakout signal. Fresh lead provided by 2 billion entry into Malaysia capital market spurred more buying interest in the market, widely spread into secondary counter as well. The interest by retail investor is encouraging and alive. I expect this trend to continue well. As the indicator, 930 pt C.I is the main hurdle now.
Just remember that the force of the trend now is more of technical and sentiment rather than what so called fundamental. So far, most financial analysts gave neural outlook. In general most financial analysts just give a better outlook for the second second half of the year - maybe to allow time for the economy to unfold. Although the market is expected to take a breather, I think that will be minor.For this week, trading range is expected between 915-930 pt. Anyway, I expect the index will make another attempt to break 930 resistance level.
Warning signal to watch: 915 point as the main support level. Any correction is expected to rebound at this level. If violated, take that as a short-term bearish signal.
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