FBMKLCI / FKLI Oversold >>> Rebound?

Stocks & Futures Drifting Lower With Regionals
Stock index ended in red territory amid weakness across regional market yesterday. The indecisive decision on white house motion to pass the debt ceiling remain pending from all the senate. Bank stocks led European markets lower yesterday as the looming deadline to raise the U.S. debt ceiling and a further downgrade of Greece’s rating also spread to the Asian market. The FBM KLCI shed about 5.46 points to 1,559.60, second weakness so far. Major weakness identify on FBM KLCI as it has formed a lower high formation on daily chart, it could a beginning of down trend if it could violated the previous low below 1,550 level.

Technically. for index future the downside risk is higher at the moment as the index is staying below the resistance trend line. Market yet showing any promising of recovery as long as the resistance trend line is left un-touch. More lower high formations are also visible on the any time frame for index futures, indicating strong bearish sentiment.   

Daily Pivot Point

R2=1564

R1= 1560

S1= 1555

S2=1553

HAPPY TRADING