The FBM KLCI’s short-term uptrend line was finally violated two days ago. The breakdown basically suggests that the uptrend created following the formation of the “Bullish Engulfing” pattern has come to an end. The violation of the uptrend line also confirmed the formation of the “Bearish Harami”.
The index finally failed to hold up above the uptrend line as the market was being constantly pressured by the weakening US market. We stated previously that the US market’s near-term technical outlook will remain bearish at below the 10,700 pt-level and are now revising our nearterm technical view on the FBM KLCI back to bearish.
To the upside, there is immediate resistance at the 1,318 pt-level, followed by the 1,335 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.
The index finally failed to hold up above the uptrend line as the market was being constantly pressured by the weakening US market. We stated previously that the US market’s near-term technical outlook will remain bearish at below the 10,700 pt-level and are now revising our nearterm technical view on the FBM KLCI back to bearish.
To the upside, there is immediate resistance at the 1,318 pt-level, followed by the 1,335 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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