Sep29

Earlier Market Commentary July 2nd Week Posted in Millionpreneur

Market Commentary

06/07/2011 July 2nd Week

chart banner gold Earlier Market Commentary July 2nd Week Posted in Millionpreneur

July Trend Forecast

Bursa tends to act “abnormally” where it breaks a new high of 1580 points. Many countries’ index experience profit taking except Malaysia going side way in the month of June, while Bursa Index sidewaying, most of its shares retraces.

When looking at the ‘Big Brother’ of the West, the Dow Jones Index rebounded to test the May high of 12800. Again looking at the ‘Big Brother’ of the East, the Hang Seng Index, it also tested the previous high of 23708, and both did not break new high.

That’s why we said Bursa Index a bit like abnormal because of not following the main “big brother” trend performance.Basically, July can go higher for about two weeks after the correction in June, where during June month end it rebounded sharply as what we forecasted.

In other words, when Hang Seng and Dow Jones index will rebound and approach the previous high, the risk of sharp retracement is still exist.Bursa has broken new high but to me it is a technical “rebound” only, because 1580 – 1620 is very critical resistance level (using master code secret numbers to anlayst) and the break new high could be just another “trap”unless we see a proof where by index close on 1633 level in mid July.

Meaning to say, in order to confirm the trend to go higher, it must breakthrough and break above 1633, then only it is a confirmed uptrend and will be reaching 1700 level.Index Futures 1580-1616 could setup Short trade, once it is above 1625, get ready to setup Long trade.

China Press Reader Ask:

MSM has shot up! What is the fortune-future for this stock? Could go higher?

MSM goes high from RM 4.40, based on ‘Millionpreneur Forecasting Software, we can forecast in advance the next resistance level, i.e. the East West Line, RM 5.01 and Zi Wu line, RM 5.82.

First thing first, its trend cannot break below the previous low of RM 4.40. When it breaks below RM 4.40, it signifies trend will be changed – from up to down trend.

There is room for it to go higher, the buy price level is between RM 4.70 – RM 5.08, and profit taking near the Zi Wu price of RM 5.82, it will experience strong resistance and shall see retracement first.

Mid and long term wise, as long as it does not break below RM 4.40, the potential for this stock is RM 6.50 – RM 7.30 level.

All the above is based on the hidden laws of the financial market, making prior forecast and judgment call. When Western indicators can’t be applied to new stock analysis, it will reveal the wisdom of the Oriental Investment Forecasting and its preciousness.