Kuala Lumpur Composite Index Recovered?

KLCI Daily Chart

KLCI ends +0.19% at 1372.39 in heavy volume with more than 2 billion shares changing hands as bargain hunting on blue chips, government-linked stocks by local funds helped reverse losses. Market breath turned positive at close with gainers edging out decliners 631 to 282. Follow through buying interest may push benchmark to retest all time high of 1392.18 tomorrow.

On the wall street market, the Dow and the S&P 500 surged to all-time intraday highs on Friday after a solid employment report rekindled optimism about the U.S. economy and corporate profits. The S&P 500 also closed at a record high.

Technically from the price chart above we can see that market is trying hardly to retest the previous high at 1392 points. After some moment of the bearish sentiment US market, KLCI take a breath at the fibo level and might to retest all the time high. Daily RSI showing that KLCI in overbought area RSI>70 which I expect that correction will happen this week. Overall look up still uptrend and promising.

Additionally with the Hari Raya holidays around the corner and given the lack of fresh leads on the local front, market observers say the KL Composite Index will likely fall into consolidation mode this week.

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