The FBM KLCI has been experiencing a series of major breakdowns since early last week. First was its violation of the three key lows in the vicinity of 1,320 pts, followed by 1,292 pts. Yesterday, the 200-day MAV line, which is normally viewed as the most important moving average line, was also violated. To our surprise, the market did not take a breather at above the 200-day MAV line and took out the moving average line in just a single attempt. This simply implies that there is a high degree of bearishness in the equity market.
The immediate technical outlook of the FBM KLCI is firmly bearish and we are now eyeing the 1,224 pt-level as the downside target. This is only the second time that we are viewing the market’s near-term outlook negatively since March 2009.
The 1,248 pt-support level supported the index yesterday. The next support would be the 1,224 ptlevel, followed by the 1,200-psychological mark. To the upside, the 200-day MAV line which now lies at the 1,266 pt-level has become the immediate resistance.
The immediate technical outlook of the FBM KLCI is firmly bearish and we are now eyeing the 1,224 pt-level as the downside target. This is only the second time that we are viewing the market’s near-term outlook negatively since March 2009.
The 1,248 pt-support level supported the index yesterday. The next support would be the 1,224 ptlevel, followed by the 1,200-psychological mark. To the upside, the 200-day MAV line which now lies at the 1,266 pt-level has become the immediate resistance.
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