KLCI may reach 1000 points

DO you believe what this analyst said, It based on pure TA, I don't believe them or should I? Let be careful of another sell down on JUNE. Enjoy this rally while you can.
'KLCI rally may last 2 more months' (ext: BT)

THE rally that pushed Malaysia’s key stock index to a six-month high may last another two months and push the gauge past the 1,000 level for the first time since October, Maybank Investment Bank Bhd. said.

The index is “tracing out a five-legged upward rebound move of the larger scale fourth leg” from a low of 801.27, Lee Cheng Hooi, an analyst at Maybank, said in a report today. “We expect a minimum rise towards 954.19 and 1,008.25 on this Wave 4C move towards its Fibonacci retracement levels.”

The Kuala Lumpur Composite Index rose 2.5 per cent in the past five days to 930.27, the fourth weekly gain, set to cap the longest winning streak since January 11, 2008. Stocks were buoyed by a smooth leadership transition when Datuk Seri Najib Razak became Prime Minister last week. Yesterday, he announced his new Cabinet as he seeks to resurrect support for the ruling coalition.

Maybank raised its technical view to a medium-term “trading buy” from “neutral,” saying political uncertainty has been removed. The index is poised to “punch above” the 936.63 level and gear up for a “slightly longer rebound rally,” Lee added.


While the trading patterns show signs of a “new bull-trend,” it may also lead to a “bull-trap,” he said.

“Enjoy this rally for now but be ready to take most of your money off the table swiftly if we sight foreign funds leaving the country,” Lee said. If the ringgit weakens, “then foreigners are leaving the country.”