We have been highlighting the importance of the recent low at the 1,488 pt-level. The market has been trying hard to establish a new floor at this level after the 28.2-pt drop on the 11th and 12th of this month. However, tensions between North and South Korea continued to dog the market and the index violated the 1,488 pt-level right after the market opened yesterday. Nevertheless, we saw the market display an obvious intention to hold up the recent low as the index rebounded off the intra-day low and eventually closed marginally above it.
We will see if the market can maintain a posture at above this level. Note that the bears have the upper hand at the current level as the market is now trading below the uptrend line 2. We have said before that a clean violation of the 1,488 pt-level would confirm the breakdown from the uptrend line 2. And we have seen many times in the last few months how the index experienced a very short retracement period after violating a short-term uptrend line. Hence, further confirmation signals are needed in order to gauge if the FBM KLCI will eventually retrace towards uptrend line 1.
Our view towards the near-term market has been the same, that is, its technical landscape will remain bullish as long as the index is still trading at above uptrend line 1.
Now, look for the 1,479 pt-level as the immediate support. Should this level be taken out, we are eyeing the 1,445 pt-level as the next support. To the upside, the 1,500 psychological mark is now the immediate resistance while next resistance is seen at the 1,512-1,514 pt-area.
We will see if the market can maintain a posture at above this level. Note that the bears have the upper hand at the current level as the market is now trading below the uptrend line 2. We have said before that a clean violation of the 1,488 pt-level would confirm the breakdown from the uptrend line 2. And we have seen many times in the last few months how the index experienced a very short retracement period after violating a short-term uptrend line. Hence, further confirmation signals are needed in order to gauge if the FBM KLCI will eventually retrace towards uptrend line 1.
Our view towards the near-term market has been the same, that is, its technical landscape will remain bullish as long as the index is still trading at above uptrend line 1.
Now, look for the 1,479 pt-level as the immediate support. Should this level be taken out, we are eyeing the 1,445 pt-level as the next support. To the upside, the 1,500 psychological mark is now the immediate resistance while next resistance is seen at the 1,512-1,514 pt-area.
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