Chartist S N Lock sees the bourse staging a U-shaped recovery

Chartist S N Lock, who gave a presentation titled "Right timing: What do the charts say about the market's direction", at the Edge-Personal Money Investment Forum on the Stock Market 2009, is forecasting the FBM KLCI to rebound to 1,163 to 1,248 point this year. He sees the bourse staging a U-shaped recovery.

During the forum, Chartist had highlight that the index will try to retest a double bottom after rebounding to targeted 1,162 point, although the secound bottom is more likely to surface next year rather than this year. At Friday KLCI close at 1108.08 and just 54 point before the bull run turn around base on Chartist forecasting so if this true we still have 5 months to invest safely in KLCI.

Technical Analyst, SN Lock shares his take on what the charts show of the markets direction and where it may possibly head in the near future.


However base on the action plan taken by government a round the world and included Malaysia, the economic is making a U-shaped recovery in this year 2009 and likely to maintenance the bound up in year 2010 before a bull run start in year 2011 of a fully recovery. Thing may chance after a crisis as we had see economic Malaysia before and after 1997/1998 crisis, so US and China will be difference after this crisis. To continues to make profit in share after this crisis technical analysis also will need to change.

Chartist S N Lock at the forum also adds that the numerical cycles of the index over the last 32 years have shown that the index tends to close higher in the years ending with the numbers 1, 3, 6 and 9.

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