Will FBM-KLCI Form A Second Time W Patten?
Since beginning of March 09 bull rally, FBM-KLCI form a W patten before jump more higher to 1190 level, however during that time KLCI 100 index also change to FBM-KLCI which only count base on 30 share and this W patten form in a month time. Now look like FBM-KLCI is also forming a second W patten but will the index jump high again?
I think likely the index will jump up again after forming a double bottom or W patten but the level will not been that high like the first W patten and likely will drop back if the index hits 1200 level due to doubt about the sustainability of global economic recovery. Due to the same reason investors may seek refuge in gold by changing they investment in share into gold.
By yesterday US gold futures hit a six-month high of US$1,000 (RM3,500) and spot gold also rose to six-month high yesterday as the dollar’s weakness, concerns about the sustainability of the global economic recovery and worries about inflation underpinned sentiment. Along with currencies, analysts were watching stock markets to gauge gold’s direction. A sell-off in equities on concerns about the economy could boost gold’s safe-haven appeal.
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