I’m getting a lot of press this week about how the mood on KLSE street is still ‘cautious’ - a sentiment which can’t have been helped by our CEO of Bursa Malaysia’s berating of everyone being so negative (which you can read here). However, I can still detect some stirrings in the market which are sniffing at value and my own broker can’t seem to stop talking about how ‘cheap’ prices are now compared to historical levels (an irrelevant fact to traders) and how good this level is to average down.
If you look at this chart, it does seem that KLSE has hits support from Dec 05 levels, and oversold RSIs and upturning stochastics suggesting an overdue bounce.
So am I buying? Yes - but only a bit, because I don’t believe that we have hit capitulation. I think that bears will try to break 880 first and then 860, which is my next line of resistance, over the next few weeks. But I have to admit, my guess right now is probably just as good as yours!
Hope you are all positioned well enough to be able to enjoy this show!
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