Yesterday afternoon, stock markets across the region fell rather sharply all of a sudden and so did the FBM KLCI. Press reports said the selling was triggered by China’s weaker than expected leading indicator reading for April.
Yesterday’s sell-off could be a confirmation of the “Bearish Harami” signal as it seemed as if the market was falling off the short-term uptrend line. All we need is another round of heavy selling pressure to confirm the violation. We are ready to change our near-term view back to bearish once the line is decisively taken out.
To the upside, the 1,334 pt-level is still the immediate resistance while the next resistance is seen at the 1,350 pt-level. The 1,307/1,308 pt-level is still the immediate support for the market. Further away, watch out for the 1,298-1,303 pt-area as the next support.
Yesterday’s sell-off could be a confirmation of the “Bearish Harami” signal as it seemed as if the market was falling off the short-term uptrend line. All we need is another round of heavy selling pressure to confirm the violation. We are ready to change our near-term view back to bearish once the line is decisively taken out.
To the upside, the 1,334 pt-level is still the immediate resistance while the next resistance is seen at the 1,350 pt-level. The 1,307/1,308 pt-level is still the immediate support for the market. Further away, watch out for the 1,298-1,303 pt-area as the next support.
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