There has been no follow-through buying interest in the market since last Thursday’s 11.23-pt gain. Even worse, all of last Thursday’s gains quickly evaporated last Friday. Since then, the index has been trading in lackluster fashion at below the meaningful 1,510 pt-level.
As we mentioned previously, except for last Thursday, the index has ended every session between the 1,474 pt-level and the 1,510 pt-level since 11 Dec 2010. The FBM KLCI has to take out the 1,510 pt-level, failing which the market is expected to remain stuck in the recent trading band ranging from the 1,474 pt-level to the 1,510 pt-level, albeit the short-term downtrend channel has been violated.
Meanwhile, we maintain our near-term bullish view as the market is still trading at above the uptrend line 1. Last month’s rebound off uptrend line 1 also signaled the market’s intention to continue extending its uptrend. Immediate resistance is still seen at the 1,510 pt-level, after which the historic high is the only resistance we can detect. To the downside, there is immediate support at the 1,500 pt-level, followed by the 1,485-1,492 pts area.
As we mentioned previously, except for last Thursday, the index has ended every session between the 1,474 pt-level and the 1,510 pt-level since 11 Dec 2010. The FBM KLCI has to take out the 1,510 pt-level, failing which the market is expected to remain stuck in the recent trading band ranging from the 1,474 pt-level to the 1,510 pt-level, albeit the short-term downtrend channel has been violated.
Meanwhile, we maintain our near-term bullish view as the market is still trading at above the uptrend line 1. Last month’s rebound off uptrend line 1 also signaled the market’s intention to continue extending its uptrend. Immediate resistance is still seen at the 1,510 pt-level, after which the historic high is the only resistance we can detect. To the downside, there is immediate support at the 1,500 pt-level, followed by the 1,485-1,492 pts area.
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