Is KLCI currently in a Dead Cat Bounce?

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Dead-Cat Bounce': A Morbid Metaphor for a Brief Market Rally - WSJ


I have called myself as a value investor which focus on value of an assets rather than its price. However, short term and medium term of market is pretty hard to predict. Hence, it's wise to implement some technical analysis on analyzing the overall market condition, whether it's a bull, a bear or a kangaroo.


From the monthly chart of KLCI, we can observe that, it seems like KLCI has formed a double top (highlighted in yellow) plus head and shoulder pattern (blue lines), which are the strong indication that the market has already formed its top!

This means that, the market has higher risk at current position, and the recent strong bound, is assumed to be a dead cat bounce. Dead cat bounce is a temporary rally of stock price after a major correction (which happened on March 2020). This could be the last chance for investor to exit the market!

However, that's just my assumption. Anything could happen in market. The subsequent market trend could be formed, either up or down, once it breakthrough the blue lines (support and resistance). However, it is undeniable that it's a bit high risk to invest at current position. 


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