Strong buying activities suddenly emerged last Thursday. The FBM KLCI indeed gapped down marginally at the opening but bargain hunters returned to the market, pushing the key index up by a strong 20.22 pts. The key index even closed back above the 200-day MAV line. As a result, a “Bullish Engulfing” was carved on the daily chart. This is also in line with the development of the DJIA and SPX in the US market as these indices also constructed a bullish “Hammer” last Tuesday.
With the “Bullish Engulfing” detected at the current level coupled with the “Hammer” seen in the US market, it looks like the FBM KLCI would have a great chance of continuing to rebound further. Anyhow, our bearish view towards the near-term market will remain the same as long as it does not return back above the 1,307 pt-level. The immediate technical outlook of the FBM KLCI is still firmly bearish at the moment.
From the current level, immediate support lies at the mid-point of last Thursday’s “Long White Day”, which is situated at around the 1,260 pt-level. Next support is seen at the 1,248 pt-level. To the upside, there is resistance at the 200-day MAV line as the key index only managed to close marginally above it. The moving average line now lies at the 1,268 pt-level while the next resistance is situated at the 1,290-1,304 pts area.
With the “Bullish Engulfing” detected at the current level coupled with the “Hammer” seen in the US market, it looks like the FBM KLCI would have a great chance of continuing to rebound further. Anyhow, our bearish view towards the near-term market will remain the same as long as it does not return back above the 1,307 pt-level. The immediate technical outlook of the FBM KLCI is still firmly bearish at the moment.
From the current level, immediate support lies at the mid-point of last Thursday’s “Long White Day”, which is situated at around the 1,260 pt-level. Next support is seen at the 1,248 pt-level. To the upside, there is resistance at the 200-day MAV line as the key index only managed to close marginally above it. The moving average line now lies at the 1,268 pt-level while the next resistance is situated at the 1,290-1,304 pts area.