Friday, 25 January 2008

Rebound likely to continue

US markets are likely going into a rebound phase before another leg downwards. For the Dow, the upside should be capped at 13,100. If it goes above, then there is a good chance that 11,600+ was the bottom. Keep a close watch here.

STI rebounded from its 2,775 long term support. It could bounce to about 3,100-3,200 before falling again. 2,775 needs to hold in the longer term.

KLCI saw come support at 1,340. It could eventually fall to 1,287-1,300 after this rebound. 1,400-1,410 is likely the top of this bounce.

Strategy - Sell on strength.

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