The DJIA’s more than 2% gain on Wednesday came at the right time to prevent the FBM KLCI from falling below the key recent low of 1,474 pts. Sustaining a posture at above the 1,474 pt-level is crucial for the market as a clean break below it would likely trigger panic selling in the market. The spillover effects from the US market caused the FBM KLCI to gap up at the opening and eventually settled with a 17.8-pt gain yesterday.
Yesterday’s market action could be a signal that the recent consolidation phase is coming to an end.It looks like the index is breaking out from the downtrend channel but we would need a breakout from the 1,510 pt-level to confirm this. This is because if the benchmark fails to violate the 1,510 pt-level soon, there is a possibility that the market will start to consolidate between the 1,474 pt-level and the 1,510 pt-level. This is indeed the market’s trading range for the past three weeks or so.
The strong rebound at least provides some relief for the market as it is now trading further away from the 1,474 pt-level and uptrend line 1. As the market is still trading at above the uptrend line 1, we maintain our near-term bullish view.
From the current level, the 1,510 pt-level is the immediate resistance, followed by the 1,512-1,514 ptarea.
Immediate support is now seen at the 1,500-psychological mark, followed by the 1,474 pt-level,
and the 1,451 pt-level.
Yesterday’s market action could be a signal that the recent consolidation phase is coming to an end.It looks like the index is breaking out from the downtrend channel but we would need a breakout from the 1,510 pt-level to confirm this. This is because if the benchmark fails to violate the 1,510 pt-level soon, there is a possibility that the market will start to consolidate between the 1,474 pt-level and the 1,510 pt-level. This is indeed the market’s trading range for the past three weeks or so.
The strong rebound at least provides some relief for the market as it is now trading further away from the 1,474 pt-level and uptrend line 1. As the market is still trading at above the uptrend line 1, we maintain our near-term bullish view.
From the current level, the 1,510 pt-level is the immediate resistance, followed by the 1,512-1,514 ptarea.
Immediate support is now seen at the 1,500-psychological mark, followed by the 1,474 pt-level,
and the 1,451 pt-level.
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