Monday - 24 March 2008
9.25 a.m. - Malaysia time zone
Last Friday the market open at 3225 and closed at 3330. The highest was at 3409 and the lowest was at 3179.Since I did not make any speculation prior to Friday, I deserve not to make any comment on the matter.
From my observation, I would say that the market is in the period of uncertainty or sideline. In this situation, normally, the startegy used would be the contrarian strategy which means you buy when the chart or grph shows that it is the signal to sell and vise versa.This can be seen clearly for the last 3 days of trading. So I would figure the market is still in the period of uncertainty, unless if the level 3150 is broken down or the level 3490 is broken up.Either or , if these level are broken , the market would show a new direction. It could be today, tomorrow etc...It hards to figure out at this moment. Anyway, I would still like to speculate for today's market ;
1) If the market opens between 3305 and below and then breaks down the level 3290, the market may go down further ( normally in the middle or later part of the trading ) to a certain level and may go up ( rebounce - here look for trendlines before taking any position) and may pass up the opening level. If the market moves further down ( do not rebounce ) and passes the level between 3190 to 3150, the market may even go further down and a black bar could happen at the end of the trading day.
2) If the market opens at 3397 and above and breaks the level between 3414 to 3424, it may go up further but at certain level, the market may fall down ( here look for trendlines before taking any position )and may pass down the opening level. If the market moves further up passing the level between 3470 to 3490 , the market may even go up further and may end a white bar today.
3 ) If the market opens between the two of the above, the market may be choppy unless if it beats down 3305 ( refer to #1 as above) or if beats above 3397 ( then refer to #2 as above).
That's about it. As usual, it is only my speculation, if you are not sure, contact your Associate Prof at UKM ....er I mean your broker or stay out of the market. If you cannot make money today, there are always another day to look forward.
Have a nice trading.