The KL Composite index (KLCI) is forming a saucer shape. This is indication of a bullish trend. However the up trend could just a technical rebound as 20 days Moving Average, (Blue-Medium Term) and 50 days Moving Average (Yellow, Intermediate Medium Term) are still above the price.

The next resistance will be approximate. 1157. However a gap down was seen in this level on 3^rd July. Therefore foreseeing some selling pressure before KLCI could break through 1157.

Since Down Jones dropped 1.14% to close @ 11000, I’ll expect KLCI to drop in the morning but slowly recover if the market is strong. KLCI needs high volume on Monday (above 5 days Moving Average on Volume) in order to break out the resistance. Else it will retrace to support level of 1132 / 1126.

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