The FBM KLCI rebounded from as much as an 18.03-pt loss at the day-low to close the day with a 3.90-pt gain. It was a 21.93-pt rebound that will go down in history as one of the most impressive rebounds for the 2009/2010 bull market.
As a result, the market ended the day at above the key recent low of 1,488 pts. Yesterday’s price action once again proves the importance of the 1,488 pt-level. Nevertheless, the benchmark is still stuck within the potential downtrend channel. Remember the downtrend channel will guide us as to when the consolidation phase will end.
There is still a possibility of the key index retracing towards uptrend line 1 as long as it remains stuck within the potential downtrend channel. Note that a break below the 1,488 pt-level will likely invite strong selling pressure and confirm the breakdown from uptrend line 2. However, the market can still avoid from falling further by maintaining a posture at above the 1,488 pt-level and stage a breakout from the downtrend channel.
Anyhow, 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 still 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.
As a result, the market ended the day at above the key recent low of 1,488 pts. Yesterday’s price action once again proves the importance of the 1,488 pt-level. Nevertheless, the benchmark is still stuck within the potential downtrend channel. Remember the downtrend channel will guide us as to when the consolidation phase will end.
There is still a possibility of the key index retracing towards uptrend line 1 as long as it remains stuck within the potential downtrend channel. Note that a break below the 1,488 pt-level will likely invite strong selling pressure and confirm the breakdown from uptrend line 2. However, the market can still avoid from falling further by maintaining a posture at above the 1,488 pt-level and stage a breakout from the downtrend channel.
Anyhow, 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 still 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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