Yesterday’s market sentiment was bearish as the FBM KLCI spent much of the session in negative territory. The market is expected to continue struggling at this level for a while following the violation of the previous three key lows in the vicinity of 1,320 pts.
We will continue to wait and see if another strong support at 1,292 pts is 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 as 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 still eyeing the 1,320-1,330 pt-area as the immediate resistance while the next resistance is seen at 1340-1,347 pts.
We will continue to wait and see if another strong support at 1,292 pts is 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 as 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 still 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