Today, KLCI broke out of its yesterday high of 1579 to close at 1582 with a volume of 801 million shares. It has been decreased compared to yesterday which recorded 947 million of shares traded. Although it’s on uptrend but I believe that it may change direction or go into sideway if there’s no higher volume of at least 1 billion shares in the following days to set the firm uptrend.
I can see that not all the counters traded at their high. Lately, there’re few counters such as MAS, MUHIBAH, MAA, MYEG all tumbling to their lowest after having experience of a roller coaster ride. Thus, most of the time our KLCI was led higher by finance and plantation stocks.
Our market is being pushed by the U.S stock market. But, we still do not clear whether it’s a big bull or just a small cow hanging around the farm. But, based on my technical analysis, there are higher possibilities that market may retrace next week to continue for the hike.
The reason is our stochastic was higher which broke 90, it indicates a short term overbought, and a pullback is expected soon. This is because the heavy profit-taking activity is likely to take place which will probably capped the immediate upside of the benchmark index.