#153. KLCI Chart And Elliot Wave Update 2

Following my first article on the discussion of KLCI Chart and Elliot Waves, here is the second update.

If you remember the Elliot Waves of 5 waves up (1-2-3-4-5) and 3 waves down (A-B-C), then you can see that the we might have possibly reached the bottom of C.

As with the technique used in my discussion on gold investment, two red straight lines are drawn to indicate the upward resistance and downward support lines.

KLCI is going up!

Now, the upper red line is important to take notice here. It looks like the KLCI chart is going to breach the upper red line anytime soon. This is exciting! It is indicating an opportunity to make some good profit.

Once the KLCI breaks above 900 points (it closed just a few points shy of 900 at 894.4 on 2 January 2009), we can expect further upward movement. And then a new cycle of upward Elliot Waves will be seen ~ 1-2-3-4-and-5!

From C now to the new wave 1, we can expect around 15% to 20% of upward movement from the 900 points. In other words, if you buy Public Index Fund, you can probably make about 15% of profit within 6 months time.

You would probably make more if you have a greater risk tolerance and go for funds like Public Growth Fund and Public Aggressive Growth Fund.

Of course, here is my disclaimer, I might be wrong with the above analysis. Only time can prove whether we will see the uptrend in the KLCI chart within the next 6 months or so. So, if you dare to take a bit of risk and bet on the funds, I wish you a prosperous new year! And if you make a good profit, don't forget to send some donation my way.

Happy investing.

Updated 5 January 2009:

The KLCI has crossed the 900 level and at 2-month high.