One of the technicals I look at before determining when to buy sell is the RSI. And I look at them for dailies, weeklies and monthlies. Now, this doesn’t work for stocks which are manipulated and it isn’t a system for picking bottoms or tops. It merely tells me whether something I am buying is expensive or not. Just like in everyday life, there are things you would pay top dollar for and there are things you wouldn’t. Therefore in my opinion this is one of the best indicators to apply to indices and sectors. So here are the charts. Basically, if the dailies, weeklies and monthlies are above 70, it is expensive and I would generally wait for a correction before buying, and anything below 30 is oversold and I would generally be ready to go into the market.
Note however, that I never go into something based on 1 set of technicals alone. I always back it up with fundamental research too. Right now there are too many negative factors affecting the global economy for me to believe that Malaysian companies will be able to maintain their earnings going into next year. But in the meantime..
Enjoy!
Daily
Weekly
Monthly
