DJIA soared 2113 points or 11.4% to close at 19722 yesterday. The huge rebound happened after Fed's aggressive monetary easing as well as buying of bonds plus progress made in drafting a huge spending bill of USD 2 trillion to support American consumers and businesses from the fallout from Covid-19.
Chart 1: DJIA's daily chart as at March 24, 2020 (Source: Stockcharts.com)
DJIA tested the horizontal line at 18000 before rebounding. Its immediate resistance will be the psychological resistance at 20000.
Chart 2: DJIA's weekly chart as at March 24, 2020 (Source: Stockcharts.com)
This morning, our FBMKLCI broke above the resistance from the narrow gap at 1320. As at 9:30 a.m., FBMKLCI was up 44 points to 1335. After this, the next resistance will be at the psychological level of 1400 and the gap at 1415.
Like the rallies in the US markets, our rally is extremely sharp due to the very steep fall which