The FBM KLCI closed marginally higher last Friday despite key indices in the US market finishing sharply higher last Thursday. The key index slowly retraced most of the intra-day gains towards the end of the session as the market failed to crack above the tough 1,307 / 1,309 pt-level. Moreover, the massive downside gap ranging from the 1,290 pt-level to the 1,304 pt-level also provided a good excuse for the traders to take money off the table.
Our view remains the same, i.e. the near-term technical outlook of the FBM KLCI is still firmly bearish. We saw the key index failing to crack above the 1,350 pt-level in three separate attempts over the last three months and the market eventually dipping below the significant support near the 1,200 pt-level. Such market action is usually viewed as a strong reversal signal.
Meanwhile, the market continues to face very tough resistance at the downside gap ranging from the 1,290 pt-level to 1,304 pts. Next resistance remains at the 1,307/1,308 pt-level. To the downside, we are still looking at the 1,276-1,285 pt-gap area as the immediate support. Another gap area ranging from the 1,269 pt-level to the 1,276 pt-level would be the next support.
Our view remains the same, i.e. the near-term technical outlook of the FBM KLCI is still firmly bearish. We saw the key index failing to crack above the 1,350 pt-level in three separate attempts over the last three months and the market eventually dipping below the significant support near the 1,200 pt-level. Such market action is usually viewed as a strong reversal signal.
Meanwhile, the market continues to face very tough resistance at the downside gap ranging from the 1,290 pt-level to 1,304 pts. Next resistance remains at the 1,307/1,308 pt-level. To the downside, we are still looking at the 1,276-1,285 pt-gap area as the immediate support. Another gap area ranging from the 1,269 pt-level to the 1,276 pt-level would be the next support.
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