Yesterday, the FBM KLCI created a new high in the 2009-2010 rally. Remember that there had previously been three failed breakout attempts at the 1,350 pt-level during the March-May period. Although the index only violated the 1,350 pt-level marginally, it could turn out to be a major market action which could lead to further upside for the market.
The immediate technical outlook of the FBM KLCI is bullish. The rebound starting from the May low was actually not a bear rebound as we had expected. This is the second time since March 2009 that a major breakdown experienced by the FBM KLCI did not lead to the kind of sharp decline that we normally see. To re-cap, the first violation of the critical 50-day MAV line in February this year also did not cause the FBM KLCI to retrace drastically from the moving average line.
From the current level, look for the next tough resistance at the 1,395 pt-level. Initial support is now seen at the 1,350 pt-level, followed by the 1,332 pt-level and the 1,326 pt-level.
The immediate technical outlook of the FBM KLCI is bullish. The rebound starting from the May low was actually not a bear rebound as we had expected. This is the second time since March 2009 that a major breakdown experienced by the FBM KLCI did not lead to the kind of sharp decline that we normally see. To re-cap, the first violation of the critical 50-day MAV line in February this year also did not cause the FBM KLCI to retrace drastically from the moving average line.
From the current level, look for the next tough resistance at the 1,395 pt-level. Initial support is now seen at the 1,350 pt-level, followed by the 1,332 pt-level and the 1,326 pt-level.
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