KLCI Index Upward Momentum to Continue?

Hi all readers, this is my first post for the year 2012. Well, time is moving really fast like a blink of an eye. I particular like the poster above, it truly shows the 1 Malaysia spirit. Anyway, I do not want to comment much about it, as my main topic here is where will KLCI Index Upward Momentum to Continue?

Long Term Chart Analysis

It has been more than 1 years plus that I did not trade in Bursa Malaysia, as I have move all my resources/bullets to the NYSE and Nasdaq Market.

Even though I am now trading in the oversea market, however, I have not forgotten the my local market KLCI as it has make me very rich once before. I am continuing to get in touch and analyse the local market chart.

As per the KLCI Index above, based on the Long Term Chart Analysis, above, most of the technical indicators such as MACD, Stochastic Bollinger Band and the rest didn't really indicate a strong signal whether KLCI is moving up or down. However, looking at the starting point of 840 (March 2009) to the current point of 1,520 (Jan 2011), it looks like a fast upward surge to me. Well, honestly I have miss this speeding train and I am quite regret about it.

Short Term Chart Analysis

Based on the Short Term Chart Analysis, KLCI upward trend looks strong and may continue to test the strong resistance at 1,600 level. Whether it will break the 1,600, only gods know. Based on the MACD and Stochastic Indicators, it does indicates that KLCI may head to test the 1,600 resistance in the near future.

Well, if you ask me whether what stocks should you buy now, my answer is better wait in the sideline if you are already out of the market. If you are still in the market, then you can wait for the KLCI to test the 1,600, if it break the level, then you stay on, but if it fail to breach the level, you should sell out and stay in the sideline. 

As for me, I am currently not in Bursa Malaysia. I am currently trading in the NYSE and Nasdaq market. I believe the risk is very at this level for KLCI and it is not worth the risk for me. What goes up fast may come down fast as well. 

Well, this post marks my come back in blogging about Bursa Malaysia. I hope that my future analysis will help all the traders in making their trading decision.

All the Best and Happy 2012 and may your profit double from here!