Monday, January 21, 2008

Triple Knock Out

KLCI ends down 2.2% at 1408.60 led by declines in foreign-favored plantation, banking and construction stocks, say dealers. Decliners trounced gainers 767 to 99 as concerns over impact of a possible recession in the U.S. prompted capitulation by some foreign funds. The sharp decline posted by Asian markets today is a clear indication that foreign funds are exiting Asian assets. The benchmark expected to trade in 1390-1410 range tomorrow. KLCI's technical indicators also bearish; daily charts indicate benchmark broke out of uptrend channel dating back to mid-August and now poised to breach 1400 psychological support. MACD, Stochastic turned bearish late last week while volume traded has been contracting. Next support at 1378 (100-day moving average).

As for myself no new position tomorrow. Still holding Integra bought at RM1.13 today.

Good Luck!

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