KLSE MARKET COMMENTS FOR WEDNESDAY (24/12/2014): MARKET TO TONE DOWN FOR THE HOLIDAYS. STAY ASIDE AND TAKE A REST KLCI index gained 5.00 points or 0.29% on Tuesday closing higher at 1749.05. At 1749.04, the KLCI has hit our 38% Fibonacci rebound target. The question now is: “Can the index rise further?” Theoretically, the market can do anything it wants to do. We just have to listen to the market. So what is the market saying through the chart? The fact that it landed at the 38% Fibonacci target means it has completed one phase of its campaign. Based on chart theory, it is expected to test the next two targets, i.e. the 1772 and 1797 level-and it will attempt to climb that mountain a bit further up to reach there. Question here is can it succeed? The answer is, it can, if buyers are still working on overtime today to bid up the market. The record Dow close at 18,024 last Friday may just be the incentive for bulls to come back to work today and drive our blue chips higher. But it is a Christmas eve after all and quite a number of fund managers are already on leave. In other words, unless funds come into the market today to support and drive up shares for year-end window dressing, we expect a FLAT MARKET. Crude oil price has stabilized to 56.70 at time of writing (8:25am, Wed), and Usd/Rgt is 3.4950, which is weak. With such a mix-to-weaker fundamentals for today, I am not sure if our market is going anywhere. MY suggestion is (1) for those who are on contra, please exit the market and do not play contra again!, (2) for those of you who have floating profits, book them and cash out and have a happy holiday, (3) for those who are aggressive and want to maximize this rebound right to 1772 and even 1797, then hold stock but place tight stop loss in case your stocks fall back. Our stock to watch for today remains the same – AIRASIA. So good luck as always and I wish you all good trading and a Merry Christmas for those of you who celebrate, and for others, have a “happy holiday” ! Fred Tam f1traderacademy
Posted on: Wed, 24 Dec 2014 00:38:02 +0000