The technical landscape of the FBM KLCI deteriorated tremendously last week. Firstly, it violated the three major key lows in the vicinity of 1,320 pts in the early part of the week. Last Friday, the market confirmed the shift in trend by breaking below another key low at the 1,292 pt-level. The key index ended the session yesterday struggling at above the 200-day MAV line.
With the violation of the 1,292 pt-level, we are now shifting our near-term outlook on the FBM KLCI to bearish, only for the second time since March 2009. The falling market might be able to take a breather at above the 200-day MAV line. This very essential moving average line was never tested in the 2009-2010 rally. Anyway, we think this support line would only provide temporary support for the market following two major breakdowns last week.
The 200-day MAV line, which now lies at the 1,266 pt-level, is now the immediate support. Next support is seen at the 1,248 pt-level. To the upside, an immediate resistance lies at the 1,290-1,304 pt-area, followed by the 1,320 pt-level.
With the violation of the 1,292 pt-level, we are now shifting our near-term outlook on the FBM KLCI to bearish, only for the second time since March 2009. The falling market might be able to take a breather at above the 200-day MAV line. This very essential moving average line was never tested in the 2009-2010 rally. Anyway, we think this support line would only provide temporary support for the market following two major breakdowns last week.
The 200-day MAV line, which now lies at the 1,266 pt-level, is now the immediate support. Next support is seen at the 1,248 pt-level. To the upside, an immediate resistance lies at the 1,290-1,304 pt-area, followed by the 1,320 pt-level.
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