We are in the view that although FKLI may resume its upward posture, but the upside may be capped. At the same time, the downside will be well defended at current level. At this moment, so long as the cash can hold above the 890 level, FKLI bull is still dominating the market.However, if the 890 level in cash unable to hold, short-term limited downside is expected. We remain our long-term view – BEAR MARKET based purely from fundamental point of view, especially the health of our economy. First level of support is seen at 880 (SMA 50), failure to hold at this level, will attract more sellers into the market and the technical landscape will change from positive to negative view. Followed by 850 level.
For today, we expect the market to open lower in accordance with the US dropped of 119 points, -1.66% last Friday; weak start in regional markets and worst than forecasted GDP data in Malaysia which released after the close of the market last Friday.
GOODLUCK!!!
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