Remember that over the last two months, the FBM KLCI had made three attempts with strong
conviction to stay at above 1,320 pt-level, and not even the DJIA’s 1,000-pt drop could pull it down
below this level? Believe it or not, the 1,320 pt-level was violated yesterday and all of a sudden, sellers swarmed buyers at this level. When such a meaningful support level is taken out, it is usually a signal of something significant.
We will now wait and see if another strong support at 1,292 pts will be violated. Once this level is also broken and the benchmark stays below it at the end of the month, we are likely to shift our near-term technical outlook to bearish for the second time since March 2009. The previous major breakdown from the 50-day MAV line did not cause the market to tumble to the extent we had expected. The downdraft following the breakdown had been very short. Anyhow, should the 1,292 pt-level be violated, it will trigger the second major breakdown since March 2009.
To the downside, immediate support lies at the 1,300 pt-level, followed by the 1,292 pt-level. To the upside, we are eyeing the 1,320-1,330 pt-area as the immediate resistance while the next resistance is seen at 1340-1,347 pts.
conviction to stay at above 1,320 pt-level, and not even the DJIA’s 1,000-pt drop could pull it down
below this level? Believe it or not, the 1,320 pt-level was violated yesterday and all of a sudden, sellers swarmed buyers at this level. When such a meaningful support level is taken out, it is usually a signal of something significant.
We will now wait and see if another strong support at 1,292 pts will be violated. Once this level is also broken and the benchmark stays below it at the end of the month, we are likely to shift our near-term technical outlook to bearish for the second time since March 2009. The previous major breakdown from the 50-day MAV line did not cause the market to tumble to the extent we had expected. The downdraft following the breakdown had been very short. Anyhow, should the 1,292 pt-level be violated, it will trigger the second major breakdown since March 2009.
To the downside, immediate support lies at the 1,300 pt-level, followed by the 1,292 pt-level. To the upside, we are eyeing the 1,320-1,330 pt-area as the immediate resistance while the next resistance is seen at 1340-1,347 pts.
No comments:
Post a Comment