KLSE

It is difficult for me to be optimistic about the market at the moment. One might think that the market is improving since November fall last year. Many are hailing recovery!! Honestly, would recovery be that easy when we just have a half year of bear after more than 3 good years?


Fig. 1 KLSE Weekly chart

Looking at the KLSE chart, a top formation is completed (Shoulder-Head-Shoulder), it broke and has since retraced to the neckline. It is now hovering between trend resistance and the neck line support. RSI and Stochastic are diverging indicating a continuation towards Singapore.Should it fulfill the SHS prophecy, its target is 675. Present resistance is 1,078.

Malaysia is at the moment very chaotic. The ruling coalition is trying hard to hold on to power while the opposition is struggling to stay together. No one is actually focusing on improving the economical situation. It will not be surprise that the SHS objective be achieved.