The FBM KLCI successfully cracked above the previous peak of 1,335 pts yesterday after a 7-day winning streak. The market may actually return back above the previous major breakdown level and is now only about 10 pts below the peak of the 2009-2010 rally.
As the daily chart is now indeed painting a very positive technical landscape after returning back above the previous major breakdown point, we should have dropped our near-term bearish view by now. However, we are sticking to our bearish view for a while because of the tricky violation of the previous peak at the 1,335 pt-level. This is because the breakout happened after the key index recorded 7 consecutive days of gains. The rally from the recent low of 1,294.37 pts is already overextended. The FBM KLCI should be consolidating very soon and we will see how the market will consolidate before altering our bearish view. Moreover, the DJIA is still trending lower within a broad downtrend channel despite its 7 consecutive days of advances.
From the current level, there is tough resistance at the 1,350 pt-level. Immediate support is now seen at the 1,332-1,336 pt-area, followed by the 1,326 pt-level.
As the daily chart is now indeed painting a very positive technical landscape after returning back above the previous major breakdown point, we should have dropped our near-term bearish view by now. However, we are sticking to our bearish view for a while because of the tricky violation of the previous peak at the 1,335 pt-level. This is because the breakout happened after the key index recorded 7 consecutive days of gains. The rally from the recent low of 1,294.37 pts is already overextended. The FBM KLCI should be consolidating very soon and we will see how the market will consolidate before altering our bearish view. Moreover, the DJIA is still trending lower within a broad downtrend channel despite its 7 consecutive days of advances.
From the current level, there is tough resistance at the 1,350 pt-level. Immediate support is now seen at the 1,332-1,336 pt-area, followed by the 1,326 pt-level.
No comments:
Post a Comment