Anyhow, the DJIA is still obviously channeling downward and it is the same for the FBM KLCI. We still maintain our bearish stance on the near-term technical outlook of the FBM KLCI after the index violated the short-term uptrend line. The immediate trend is obviously still down after the market created the “Bearish Harami”. Also, do not forget that the benchmark index made three failed attempts to break above the 1,350 pt-level, which led to it breaking below the critical “Neckline” support.
Today, we will see how the benchmark index reacts to the DJIA’s 120.71-pt rebound. The FBM KLCI’s performance yesterday was still lackluster even though the DJIA put on a hefty 274.66 pts on Wednesday. Another point worth noting is although the FBM KLCI has been trending higher over the past three sessions, the three white candlesticks are actually shrinking, which could be signaling that the rebound might be losing steam. Anyhow, we should be able to tell if the momentum is indeed slowing down after today’s session.
From the current level, the 1,298-1,303 pt-area is the immediate support while next support is seen at the 200-day MAV line, which now lies at the 1,284 pt-level. To the upside, immediate resistance still lies at 1,318 pt-level, followed by the 1,330 pt-level.