The FBM KLCI pierced through the previous peak of 1,335 pts two days ago but retreated to below it yesterday as the key index ended its 7 consecutive days of advances. As we mentioned before, the rally from the recent low of 1,294.37 pts had been over-stretched and the market finally took a breather yesterday.
Yesterday’s market action proves that it was indeed a tricky violation of the previous peak at the 1,335 pt-level because the breakout happened after the key index recorded 7 consecutive days of gains Hence, the violation of the previous peak has not been confirmed and we maintain our bearish view towards the near-term market. We will see how the FBM KLCI will continue to consolidate its massive gains over the 7 following yesterday’s retracement.
From the current level, the 1,335 pt-level is the immediate resistance and there is tough resistance at the 1,350 pt-level. Immediate support is now seen at the 1,332 pt-level, followed by the 1,326 ptlevel.
Yesterday’s market action proves that it was indeed a tricky violation of the previous peak at the 1,335 pt-level because the breakout happened after the key index recorded 7 consecutive days of gains Hence, the violation of the previous peak has not been confirmed and we maintain our bearish view towards the near-term market. We will see how the FBM KLCI will continue to consolidate its massive gains over the 7 following yesterday’s retracement.
From the current level, the 1,335 pt-level is the immediate resistance and there is tough resistance at the 1,350 pt-level. Immediate support is now seen at the 1,332 pt-level, followed by the 1,326 ptlevel.
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