KLCI & Futures

KLCI - rose as expected Thurs, but is now reaching the strong resistance of 970 same as the Futures. Indicators are still positive, its riding the upper Bollinger Band channel, above the 7,14 & 30-day MAV, MACD is also +ve & there is no candle reversal pattern. On the -ve side there is strong resistance at 970 & the possibility of a double top if it cannot penetrate the 970 decisively. Again at this stage we have to be rather cautious as it has reached decision time, to cross 970 or fall back.


FKLI- Futures are same as CI, indicators positive but reaching strong resistance at 970 too. Its certainly toppish.


We'll have to see what happens Fri. Are there any drivers that can help push it even higher today or is sentiment weak & a fall back is the most likely outcome. Dow dropped 100 pts (expected as it was rather toppish) & oil prices rose (but still within very comfortable range). But Thailand seems to have resolved itself & there is no otherwise negative news around. Impossible to make a call other than to advise caution.