KL Futures, CI & CI Head & Shoulders

Futures
For those trading CI Futures & for a bearing on the CI itself its interesting to study the movement of KLCF. Today's low of 876 has fallen to the strong support level of 870-876. This level has shown strong support for the last 2 years (see circles on chart) & the Index should again bounce back from here. This will also lend support to the CI. Futures traders may want to go long from here, with a cut loss below 870.



CI
The CI itself found support at the 900 level today & as shown in the Chart below, the 900-906 level has provided strong support over the last 2 years. The downside risk is 883, the previous double bottom support. If the CI breaches 900 & falls to 883, that level will be a very strong support for the market to restart its bull run. However, 900 may hold up the market. I would start nibbling quality stocks from this point on & buy strongly if it falls to 885 or so.


Inverted Head & Shoulders?
The last point is whether we will be seeing an Inverted Head & Shoulders formation soon. Certainly there is a possibility of that formation now that it has fallen to 900. From the chart below we can see that today's fall can give us S2 the second 'shoulder' of the IHS. If prices rise to 925 & breakout from that point on high volume (X), we have a neckline (A-B) breakout & prices can rise to 976 (C) which will take it to a strong resistance & complete the IHS move. This is very interesting & we will probably see confirmation soon so keep an eye out for it. Plenty of money to be made if this comes true.