On Wednesday and Thursday, the FBM KLCI rebounded from the day-low steadily just when we thought the key index was going to re-test the 50-day MAV line. Anyhow, Friday’s 2.08 point gain was obviously capped at the overhead hurdle once again.
It still looks like the FMB KLCI has started constructing a lower-high and the risk remains high that the market is going to re-test the 50-day MAV line for the second time. A break below the 50-day MAV line would see the market facing massive selling pressure similarly to the previous
breakdown from the 20-day MAV line. Meanwhile, we maintain our bearish view towards the near-term market. We will likely see the sellers selling more aggressively and confidently at below the 50-day MAV line.
It still looks like the FMB KLCI has started constructing a lower-high and the risk remains high that the market is going to re-test the 50-day MAV line for the second time. A break below the 50-day MAV line would see the market facing massive selling pressure similarly to the previousbreakdown from the 20-day MAV line. Meanwhile, we maintain our bearish view towards the near-term market. We will likely see the sellers selling more aggressively and confidently at below the 50-day MAV line.
To the upside, continue to look for an immediate resistance lying at the 20-day MAV line, which is nowsituated at the 1,070 pt-level, followed by the 200-week MAV line, which is now lying at the 1,097 ptlevel.
To the downside, we are still eyeing an initial support at the “Downside Gap” ranging from the 1057 pt-level to the 1,064 pt-level. The next support is seen at the 50-day MAV line, or the 1,050 ptlevel, followed by the 1,028 pt-level.
To the downside, we are still eyeing an initial support at the “Downside Gap” ranging from the 1057 pt-level to the 1,064 pt-level. The next support is seen at the 50-day MAV line, or the 1,050 ptlevel, followed by the 1,028 pt-level.
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