Although last Friday’s 5.98-pt loss was more than the marginal 2-pt dip recorded in the prior session, the loss was considered a healthy consolidation for a market which has gone up more than 30 pts in the early part of last week. Besides, no signs of major panic selling activities were seen during the market’s consolidation phase.
Remember the FBM KLCI’s daily RSI was at the 86.4-pt level last Wednesday, which was the highest level ever recorded by the market since the bull market started in March 2009. The indicator has now retraced back below the 80-pt overbought level. As we mentioned many times before, despite the market’s current overbought condition, it can still stretch its gains further despite the overbought territory. Remember that over the last 21 trading days, the 71.7-pt RSI level was the lowest closing for the daily RSI, and the index had actually gained more than 100 pts at above the 70-pt RSI level.
The FBM KLCI’s near-term technical outlook will remain firmly bullish as long as it stays above the new uptrend line, as is marked in the above chart. Besides, the index can still go up further without a sharp pullback as long as the steeper uptrend line is not violated.
The market’s immediate resistance still lies at the psychological 1,500 pt-barrier, followed by the 1,524.69 pt-level. To the downside, there is immediate support at the 1,457 pt-level, followed by the 1,439 pt-level.
Remember the FBM KLCI’s daily RSI was at the 86.4-pt level last Wednesday, which was the highest level ever recorded by the market since the bull market started in March 2009. The indicator has now retraced back below the 80-pt overbought level. As we mentioned many times before, despite the market’s current overbought condition, it can still stretch its gains further despite the overbought territory. Remember that over the last 21 trading days, the 71.7-pt RSI level was the lowest closing for the daily RSI, and the index had actually gained more than 100 pts at above the 70-pt RSI level.
The FBM KLCI’s near-term technical outlook will remain firmly bullish as long as it stays above the new uptrend line, as is marked in the above chart. Besides, the index can still go up further without a sharp pullback as long as the steeper uptrend line is not violated.
The market’s immediate resistance still lies at the psychological 1,500 pt-barrier, followed by the 1,524.69 pt-level. To the downside, there is immediate support at the 1,457 pt-level, followed by the 1,439 pt-level.
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