The FBM KLCI spiked up about 10 pts in early in the morning session but all its gains slowly evaporated from then, with the index even dipping briefly into negative territory. The market settled with a 4.59-pt gain at the close. It was the fourth day of consolidation for the FBM KLCI and this consolidation phase still looks very healthy.
We believe that whether or not the index could stay above the steeper uptrend would determine if the market can still march higher from here without pulling back sharply. Note that the market has advanced more than 100 pts over the past one month or so without a meaningful correction. Even a 50-pt correction from the current level would not alter the bullish technical landscape. However, as long as the market can stay at above the steeper uptrend line, there is always a possibility that the index may stretch its gains further, even at around the overbought territory. Note that the recent more than 100-pt gain actually happened at above the 70 pts 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.
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.
We believe that whether or not the index could stay above the steeper uptrend would determine if the market can still march higher from here without pulling back sharply. Note that the market has advanced more than 100 pts over the past one month or so without a meaningful correction. Even a 50-pt correction from the current level would not alter the bullish technical landscape. However, as long as the market can stay at above the steeper uptrend line, there is always a possibility that the index may stretch its gains further, even at around the overbought territory. Note that the recent more than 100-pt gain actually happened at above the 70 pts 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.
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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