FBMKLCI Chart & Summary (CIMB)

Profit taking set in during mid-week after it could not beat the 1,480 mark. With Friday’s gap down, the index formed a bearish island reversal pattern. If the gap of 1,451-1,458 is not filled in the coming days, then we could see a deeper correction to test its 30-day SMA at 1,422. The following support is at 1,406 and the psychological 1,400 levels. With the MACD confirming its sell signal, the index could endure another few more days of consolidation. Closing the gap quickly would help eliminate this bearish island reversal pattern and also allows the bull to continue to lift the index higher to test its resistance at 1,480 again and possibly even test the 1,490-1,505 gap.