FBM KLCI >>> Left with no options other than a breakout

A picture paints a thousand words

The Chart speaks for itself

A breakout (north or south) could dictate the immediate direction for next week 

GOOD LUCK

Technical Analysis : FBM KLCI persist in consolidation mode

FBM KLCI Technical Analysis : The Fibonacci Retracement Support & Resistance

The stubbornly overbought technical momentum and also weakening trend indicators for the benchmark FBM KLCI are suggesting the current uptrend is waning. Hence, we expect further profit-taking consolidation this week until overbought momentum has been neutralized.

Moreover, weak buying momentum last week, as most investors were sidelined ahead of the nomination of candidates for the 13th general elections, suggests that the current subdued trading sentiment could persist up to election day.

As for the index, immediate support will be at the previous 1,699 record high of Jan 2013, matching the rising 10-day moving average and last Tuesday’s low of 1,688. Stronger retracement supports remain at 1,658, representing the 23.6% Fibonacci Retracement (FR) of the 1,526 low of May 2012 to the 1,699 record high of Jan 2013, and 1,633, the 38.2%FR matching the recent pivot low as strong downside buffer. 

Immediate resistance would be at the intra-day record high of 1,716, while a breakout would target the upper Bollinger band at 1,722, and then 1,740, 123.6% Fibonacci Projection (FP) level.

FBMKLCI >>> The Moving Averages & Fibonacci Retracement %

The bulls live above the 200; below that, the bears

Most technical momentum indicators for the FBMKLCI stay bearish amid weak buying

momentum, blue chips are likely to extend low-volume consolidation as the end of the month

approaches. However, rotational trading plays on lower liners and small-cap stocks are

noticed to pick up and attract speculative retail interest, hence trading momentum is likely to

switch focus to the broader lower tier counters, as blue chips extend consolidation.

Technically,  immediate upside hurdle remains at the 200-day moving average currently

residing at 1,635, with next resistance at 1,643 and 1,644, the respective 50 and 100-day

moving averages, and stronger resistance at 1,658, the 23.6% Fibonacci Retracement (FR) of

the 1,526 low of May 2012 to the 1,699 record high of Jan 2013. Immediate support is

downgraded to 1,613, the 50%FR, with 1,599 and 1,592, the 61.8%FR, acting as stronger

support platforms.

In a nutshell, the FBMKLCI ain't going nowhere higher until the prices can break above the 200 MA or 1635.00 resistance whereby the FKLI will most probably be in premium versus the cash index.

GOOD LUCK