The FBM KLCI unexpectedly pulled back by 13.49 pts yesterday and at one point even lost slightly more than 15 pts at the day-low. Judging from the recent sharp run-up that started from above the critical low of 1,474 pts, the retracement still looks healthy although the selling momentum was rather worrying. The magnitude of the selling pressure looked like it might further drag down the index in the coming sessions. We will see if the market can quickly recover some of yesterday’s losses.
Our view is that the market retracement would still be considered healthy as long as the index stays at above the 1,530 pt-level. This is because the recent breakout from this level wrote off the possibility of the market trending sideways between the 1,474 pt-level and the 1,530 pt-level. The breakout from the 1,530 pt-level had strengthened our bullish bias view.
We maintain our bullish view towards the near-term market. Immediate support is seen at the 1,531-1,536 pt-area. The 1,530 pt-level is expected to provide good support to the market should it be tested. Immediate resistance is situated at the 1,565 pt-level while the historic high of 1,577 pts would be the next formidable hurdle.
Our view is that the market retracement would still be considered healthy as long as the index stays at above the 1,530 pt-level. This is because the recent breakout from this level wrote off the possibility of the market trending sideways between the 1,474 pt-level and the 1,530 pt-level. The breakout from the 1,530 pt-level had strengthened our bullish bias view.
We maintain our bullish view towards the near-term market. Immediate support is seen at the 1,531-1,536 pt-area. The 1,530 pt-level is expected to provide good support to the market should it be tested. Immediate resistance is situated at the 1,565 pt-level while the historic high of 1,577 pts would be the next formidable hurdle.
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