Last Friday, the FBM KLCI rallied by a strong 13.22 pts to disconfirm the “Gravestone Doji” which was just created in the preceding three days. The rally also took out the 1,307/1,308 pt-level, or the January peak. This means that the rebound started since the key index created a “Bullish Engulfing” at the 1,243.86 pt-level will continue to stretch further.
Last Friday’s market action basically caused us to drop our bearish view towards the nearterm market. The FBM KLCI has now recouped more than 50% of the 100-pt drop in May. However, we have a Neutral view on the FBM KLCI because the DJIA’s near-term technical outlook will remain bearish at below the 10,700 pt-level, at which it is trading very closely.
To the upside, the 1,334 pt-level is the immediate resistance while next resistance is situated at the 1,350 pt-level. The 1,307 / 1,308 pt-level has now become the immediate support. Further down, watch out for the 1,298-1,303 pt-area as the next support.
Last Friday’s market action basically caused us to drop our bearish view towards the nearterm market. The FBM KLCI has now recouped more than 50% of the 100-pt drop in May. However, we have a Neutral view on the FBM KLCI because the DJIA’s near-term technical outlook will remain bearish at below the 10,700 pt-level, at which it is trading very closely.
To the upside, the 1,334 pt-level is the immediate resistance while next resistance is situated at the 1,350 pt-level. The 1,307 / 1,308 pt-level has now become the immediate support. Further down, watch out for the 1,298-1,303 pt-area as the next support.
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