Thursday, July 21, 2016
KLCI : Bearish
Learning Corner : Stochastic
KLCI as shown this morning to my trading-group as I sold most of my holdings. As it gapped down, stochastic will be bearish.
KLCI closed below 1660 level, minus 12 points. As stochastic is above 80, we considered that as OVERBOUGHT and when it crossed, we called it bearish-crossover.
It is not what these indicators showing ... it is WHAT we do is more important. So ... it is not knowledge in technical-analysis, it is our actions.
Now ... holding cash, what is next? Wait ... wait for 1620 again? That is our strong support.
With the 1MDB coming back to haunt us, it will be safer to hold cash and wait.