Kl Composite Index - Bearish Reversal expected

The KLCI was trading sideways in the past few weeks although regional markets have been rallying upwards until last week. The KLCI closed at 1232.84 as at 12.30 noon, falling 13.95 points from Friday's clos because of the decline in the US Dow Jones Industrial Average. The KLCI is near the short term down trend line (I use 30 day moving average for the short term trend) and also near a down trend line that has developed since early this year.

With KLCI near resistance level, a bearish reversal is expected and therefore the KLCI is expected to be bearish this week and should find support at 1,200 points level. by Benny Lee