The FBM KLCI managed to claw its way back above the crucial support floor at the 1,488 pt-level. This is a meaningful level as it was where the market had been trying to establish a new floor after the 28.2-pt drop on the 11th and 12th of this month.
Today and next week, we will see if the index can actually hold up the 1,488 pt-level and eventually rebound back above uptrend line 2. At the current level, although the index has returned back above the 1,488 pt-level, it is still vulnerable to a pullback and possibility fall back towards uptrend line 1.
We are still waiting for the confirmation signal to see if uptrend line 2 has been decisively violated and need to see a clean violation at the 1,488 pt-level to confirm it. We have seen many times in the last few months how the index experienced a very short retracement period after violating a shortterm uptrend line. Hence, further confirmation is needed in order to gauge if the FBM KLCI would eventually retrace towards uptrend line 1. Off course, at the same time, we are also monitoring the possibility that the index could eventually rebound above the uptrend line 2 after yesterday’s return back above the 1,488 pt-level.
Meanwhile, 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.
We are now eyeing the 1,500 pt-level as the next resistance followed by the 1,512-1,514 pt-area. Immediate support is now seen at the 1,488 pt-level, followed by the 1,479 pt-level.
Today and next week, we will see if the index can actually hold up the 1,488 pt-level and eventually rebound back above uptrend line 2. At the current level, although the index has returned back above the 1,488 pt-level, it is still vulnerable to a pullback and possibility fall back towards uptrend line 1.
We are still waiting for the confirmation signal to see if uptrend line 2 has been decisively violated and need to see a clean violation at the 1,488 pt-level to confirm it. We have seen many times in the last few months how the index experienced a very short retracement period after violating a shortterm uptrend line. Hence, further confirmation is needed in order to gauge if the FBM KLCI would eventually retrace towards uptrend line 1. Off course, at the same time, we are also monitoring the possibility that the index could eventually rebound above the uptrend line 2 after yesterday’s return back above the 1,488 pt-level.
Meanwhile, 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.
We are now eyeing the 1,500 pt-level as the next resistance followed by the 1,512-1,514 pt-area. Immediate support is now seen at the 1,488 pt-level, followed by the 1,479 pt-level.
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