(Please refer to the Chart below - click to enlarge) All my life, I never see or encounter with today's daily chart point. Lookin likes a `HAMMER' (candlestick), but very very weird. Hope to see a technical rebound toward 1,210 tomorrow. Punters who did cut loses in the morning really kena teruk already. Punters & Remisiers & Traders will start having less sex from today onwards.
Anyway, as for today share prices closed sharply lower, though well off their intraday lows, as investors who missed the previous run-up picked up bargains, helping the benchmark index recover from the day's low of 1,136.01 points.
The two-day sell-off may signal the end of the Malaysian bourse's bull run since late last year. The meltdown on Asian markets will "stop the bull for now and it may take a while for people to come to their senses. In the short-term, investors won't care about the fundamentals, it will be a sentiment-driven market.
The Malaysian stock market will follow regional markets, but (the question is) who will be the leader? The US market used to be the leader but it had followed the China market yesterday. China is recovering today, but the confidence has yet to return.
Meanwhile, Bursa Malaysia chief executive officer Yusli Mohamed Yusoff, in a bid to calm frayed nerves, issued a statement saying the Malaysian bourse's fundamentals remain strong despite the sharp decline. (Exactly the same words as what Anwar Ibrahim said in 1997.. heh heh.. don't worry our fundamental is still strong).
Support at 1150, Resistance at 1210 & 1250.
For 2/28/2007 the KLCI closed at 1,196.4500.
Overall, the bias in prices is: Bearish.
The KLCI is vulnerable to a correction towards 1,185.82.
The projected upper bound is: 1,234.82.
The projected lower bound is: 1,162.40.
The projected close: 1,198.61.
Support at 1120. Resistance at 1250.