Double Bottom?
Last Monday (12 June) I posted an article stating that there was possible support at the 915 level which was the lower trendline of a rising trend channel from July 2003 but I also stated that the Dow would dictate whether further correction was possible. It was & subsequently the CI fell further. On 14 June I then posted a statement on Chargingbull's blog http://www.thechargingbull.net that there was strong support at the 883 level which was a double bottom but if this was breached then 860 would definitely hold. True to TA, the CI fell to 883 & found its support there on 15 June & the Dow's 2 day uptrend on 14 & 15 June has given the Msian bulls enough strength to rise from the 883 level. This will constitute a very strong double bottom & the market should start to rise again from here.
Also the strengthening of the Ringgit in tandem with the Yuan will bring foreign investors back in. Asian & European markets have also risen in the last 2 days & the CI will now play catch up.
If the CI stays up for 3 days, then I will say that this is a confirmed double bottom & the bulls will take charge again. See chart for the 883 double bottom marked 'X' and 'Y'
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