The FBM KLCI fell by almost 20 pts in the late afternoon session. Market participants finally rushed out of the market after 5 days of constructive sideways trading. The index, however, managed to rebound off the intra-day low as it found support near the steeper uptrend line and ended the day with a 16.67-pt loss Prior to the retracement, the index had advanced by more than 100 pts since the low in August, and to add, the more than 30 pts gained on last Monday and Tuesday.
Remember we have been talking about the FBM KLCI having previously added more than 100 pts, with the daily RSI trading at above the 70 pt-level. And, the indicator also closed at the highest level since the bull market started in March 2009. The 16.67-pt pullback brought the RSI back below the 70 pt-level, closing at the 65.7 pt-level yesterday. Nevertheless, the index still maintained its position at above the steeper uptrend line.
Of course, judging from yesterday’s selling momentum the market is at risk of violating this steeper uptrend line soon, or possibly even violating it today. However, as we mentioned many times before, the FBM KLCI can still march higher without pulling back further as long as the market maintains its posture at above the steeper uptrend line.
Anyhow, 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.
Remember we have been talking about the FBM KLCI having previously added more than 100 pts, with the daily RSI trading at above the 70 pt-level. And, the indicator also closed at the highest level since the bull market started in March 2009. The 16.67-pt pullback brought the RSI back below the 70 pt-level, closing at the 65.7 pt-level yesterday. Nevertheless, the index still maintained its position at above the steeper uptrend line.
Of course, judging from yesterday’s selling momentum the market is at risk of violating this steeper uptrend line soon, or possibly even violating it today. However, as we mentioned many times before, the FBM KLCI can still march higher without pulling back further as long as the market maintains its posture at above the steeper uptrend line.
Anyhow, 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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