The fairy tale of the FBM KLCI stretching gains above the steeper uptrend with the daily RSI staying at above the 70 pt-level came to an end last Friday. After last Thursday’s 17.62-pt loss followed by the opening gap-down of 6.5 pts last Friday, the steeper trend line was violated. Another round of sharp dip would confirm this violation.
It looks like the market will not be able to continue its stretching gains without further pulling back after the daily RSI reached its most overbought level since the bull market started in March 2009.
This week, we shall see if the market can rebound back above the steeper uptrend line. Anyhow, as we have said before, even if the FBM KLCI retraced by another 40 pts or so, the pullback would not alter the stock market’s near-term bullish technical landscape.
Our view remains the same, i.e. the FBM KLCI’s near-term technical outlook will stay firmly bullish as long as it stays above the new uptrend line, as is marked in the above chart.
The market’s immediate resistance is now seen at the recent high of 1,479.6 pts. Next resistance lies at the psychological 1,500 pt-barrier, followed by the 1,524.69 pt-level. To the downside, the 1,439 pt-level is now the initial support, followed by the 1,428 pt-level.
It looks like the market will not be able to continue its stretching gains without further pulling back after the daily RSI reached its most overbought level since the bull market started in March 2009.
This week, we shall see if the market can rebound back above the steeper uptrend line. Anyhow, as we have said before, even if the FBM KLCI retraced by another 40 pts or so, the pullback would not alter the stock market’s near-term bullish technical landscape.
Our view remains the same, i.e. the FBM KLCI’s near-term technical outlook will stay firmly bullish as long as it stays above the new uptrend line, as is marked in the above chart.
The market’s immediate resistance is now seen at the recent high of 1,479.6 pts. Next resistance lies at the psychological 1,500 pt-barrier, followed by the 1,524.69 pt-level. To the downside, the 1,439 pt-level is now the initial support, followed by the 1,428 pt-level.
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