Is the Correction over?

After the market hit 1308 points on 21 Jan 10 , it started to correct. This is also a previous high in Apr 09 which is 1305, thus formed strong resistance. From Technical Analysis (TA) view point, there is possibility of KLCI testing a lower point unless it manage to stay above the EMA 50. The reason I suggest this is due to (refer to chart below):

1) Price is below EMA 50
2) MACD is below 0
3) MFI is below 50



If it did go below, next support is expected at 23.6% which is around 1195 and coincidentally meeting EMA 200. However price is still above EMA 200 which is long term indication of the bull is still in tact. Therefore it is good time to accumulate before the next bull run.

The above sharing is for reference purpose and not a recommendation to buy or sell. Kindly check with your broker for advise.