Monday, May 18, 2009

Waiting to Short Future Index

Date: 20090517 Still Waiting and Watching
I am still waiting for the KLCI to close below the moving average both the high (Green Line) and the low (Purple Line). Both Daily Stochastic and Weekly Stochastic are now down. Shorting seems to be a better chance of making big buck. However, if the price keeps going up and breaking the recent high, I will turn long again. I am using KLCI as reference to decide on my long and short actions of Future Index

The bull have been strong up till now. There no sign of weakening except that Daily Stochastic and Weekly Stochastic (refer to KLSE Daily and Weekly chart). And also index hold well above the moving average (the high and the low).
I will base on the KLSE composite index as reference for my future shorting action. If index breaks below the recent daily low of 1013 registered on 12 May 2009, there is high chance that the trend will turn down. I will short future index. A piece of FKLI chart is attached for reference.
Of course, this action of shorting has to be temporary as the overall trend is still up. A close stop loss should be used.

No comments:

Post a Comment