The FBMKLCI was in a consolidation mode last week. The bulls encountered strong resistance at the 50-day SMA and prices have since taken a step back. On Friday, the benchmark even violated the 1,500 psychological level. It appears that the index is now entrenched in a downtrend channel. The fact that prices fell below its 30-day SMA indicates that the 1,576.95 high could be its near term peak. For now, any rebound would likely cap at 1,514-1,529, its 30-day and 50-day SMAs respectively. On the downside, the February low of 1,474 is likely the immediate support. Once this level fails to hold, prices would then dwindle towards its 200-day SMA at 1,441.
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