KLCI & Futures - IHS confirmed

1) KLCI - The Inverted Head & Shoulders pattern has been confirmed with the CI staying above the 932 resistance & the 928 neckline of the pattern. While a pull back to the neckline in IHS pattern is common, it is not necessary. As the Dow Jones closed higher on Friday & there are no real negative sentiments, CI will likely stay above 932 & then rise to the Target of 976-980. Oil price has also fallen slightly. The only concern is the slowdown in US economy. Will this affect the world economy or is it good because now the Fed will not raise interest rates anymore? Generally it should be viewed positively as there is still growth.


2) CI Futures - Has finally corrected after 8 consecutive days of rises. Support is at 933 & 921. A pullback to 921 will be very healthy. Further support is at 905. Daily RSI & MACD are positive & index is above the 10,21 & 30 day MA, so all indicators are very good. Upside will resume after a mild correction probably to 921 max.