Market Outlook as at March 8, 2010

FBM-KLCI gained 22.73 points to touch 1322.51 as at 12.00 noon. We can see from the daily chart that the market may be charting the course of its next upleg soon. Some indicators which have turned positive are:
1) MACD hooking up;
2) RSI entering into the overbought zone; and
3) +DMI swinging upward coupled with -DMI swinging downward. ADX has turned upward.

FBM-KLCI may however face some resistance at the level of 1325-30, as the market will attempt to break out of the expanding triangle ('ABCD').


Chart: FBM-KLCI's daily chart as at Mar 8, 2010_11.40am (Source: Quickcharts)

Based on the above, our market outlook should be bullish.