09/09/13 : The Gap Resistance was taken down!

Date : 9th Sept 2013
KLCI : 1,747 (+23)

Our KLCI is really strong and resilient. It soared forcefully despite of uncertainty that shadowed the global market. The gap resistance 1,730 to 1,740 was exceeded eventually after a week. The role of resistance is reversed as support. It shows the ability of the bull to launch counter attack isn't weak. However, this soar is still classified as a technical rebound, rather than an uptrend. This is because
1. The average traded volume is relatively low compare to previous decline.
2. Still traded below the down trendline (Red colour) that serves as the back bone for this decline.

Critical Levels:
Resistance : 1,784 (Down trendline)
Support : 1,740 (Gap Support), 1735 (Up trendline)

Technical Indicators:
1. Stochastic: Critical (but still bearish biased)
    Although it continues to move upwards, but SHORT signal will still happen IF it drops out from the overbought region. Don't worry, be patient.
2. Bollinger Band : (critical)
    No signal is triggered. The price is still failed to reach the upper band.

Conclusion:
1. Continued to stay out as no signal is triggered. Patience is very important in trading.
2. This is just a technical rebound. However, the recent strong surge indicated the bearish strength will not be as strong as expected earlier.
3. Be prepared for SHORT establishment when either Stochastic or Bollinger Band gives sell signal.

Confidence Level : 80%