Aimless Drifting

The KLCI was trading around 925 in our previous update. Coincidentally, it is trading at the same level now. Having failed to break above the resilient resistance at 930 as we expected, the index traded down to a low of 910.80 on 8th Mar 06, before rebounding to the current levels.

In my opinion, we would be consolidating here for a while more. We still have a good probability of the index breaking above the 930 barrier after the current consolidation. Hopefully, the unveiling of the 9th Malaysia Plan would provide the necessary impetus to drive the index higher. So, the current technical picture is a neutral one with cautious bullishness.

I will update as soon as possible on subsequent developments. Stay nimble and happy trading and investing!