It was basically a consolidation week for the FBM KLCI. The index has been consolidating sideways within a tight trading range ever since the creation of the “Morning Star” at below the steep downtrend line.
As mentioned since last Thursday, after creating the “Morning Star”, we would need the index to crack above the recent high of 1,479.6 pts to confirm the bullish reversal signal. If not, a dip below the recent low of 1,445.33 would increase the odds of the index falling further after it violated the steeper uptrend last Thursday. Hence, we would need the market to breach either one of these two levels in order to determine its immediate direction.
Meanwhile, 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. Hence, even another 40 pt-drop or so would not cause a dent in the rising trend.
The market’s immediate resistance is still seen at the recent high of 1,479.6 pts while the 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.
As mentioned since last Thursday, after creating the “Morning Star”, we would need the index to crack above the recent high of 1,479.6 pts to confirm the bullish reversal signal. If not, a dip below the recent low of 1,445.33 would increase the odds of the index falling further after it violated the steeper uptrend last Thursday. Hence, we would need the market to breach either one of these two levels in order to determine its immediate direction.
Meanwhile, 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. Hence, even another 40 pt-drop or so would not cause a dent in the rising trend.
The market’s immediate resistance is still seen at the recent high of 1,479.6 pts while the 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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