Update: KLCI, CI Futures & Plantation Index

1) KLCI - has crossed over the 931 resistance on increased volume tho' volume is still not significant (i.e. it has not exceeded 1 billion shares). This could mean that it is confirmation of the IHS with just 1 shoulder. However, for confirmation I would like to see the index stay above 931 for at least 3 days, then only can we confirm the breakout. If it falls back below 931 then the breakout is false & we may still see one more round of consolidation before the true breakout happens.


2) KLCI Futures - Truly amazing the strength of the CI Futures, it blasted through the potent Doji Evening Star & closed well above it at 929. The margin between the Futures & daily KLCI is now just 5 points. Does the futures have enough legs to cross above the CI? That would be bullish for the CI in the near term. There is a strong resistance at 934, so that may cap it for now. But Daily RSI & MACD are still positive & rising, Weekly MACD is rising but still negative yet to make a golden cross. It will be interesting to see if 934 will stop this baby. Anyone who went long at the bullish engulfing pattern at 877 support on 18 July will be laughing all the way to the bank.


3) Plantation Index - has formed a potential shooting star, so we may see a minor correction. Support is at 3443 the previous strong resistance. With rising palm oil prices I believe that this correction is just to correct the overbought position in plantation stocks & after a correction the rise will continue. This is also based on the fact that the weekly MACD just made a golden cross, weekly RSI at 58 & rising is just in the early trend of rising. Daily MACD is still positive & RSI at 84 is slightly overbought but still has room to move up.