FBMKLCI Chart & Summary (CIMB)

The FBMKLCI was in a consolidation mood last week. Looking at the chart, it seems that the wave 5(iv) could have been completed at the 1,558 levels. If we are right, the final wave of 5(v) is now underway. Prices should swing towards the 1,580-1,595 levels in the near term. The 1,600 psychological level is also a near term magnet. Alternatively, we could probably see an extended consolidation wave 5(iv), which should keep prices between 1,558-1,576, before inching higher. Either way, there should be one more upleg. On the downside, a break below 1,558 would mean that a deeper correction is underway. Index could fall back to 1,542-1,527.