The short-term uptrend line was violated early this week in a breakdown that also resulted in the index returning back below the previous historic high of 1,577 pts recorded in January. Meanwhile, the FBM KLCI is exhibiting no signs that the current retracement will be bottoming out anytime soon.
Following the violation of the short-term uptrend line, it means that the FBM KLCI could succumb to further selling pressure. Anyhow, as we previously mentioned, as it was only a breakdown from a slightly more than 2-month old uptrend line, this breakdown had not dealt significant technical damage to its daily chart.
We are now cautiously bullish on its near-term technical outlook. A “cautiously bullish” statement denotes the possibly of the index eventually retracing to the 1,474 pt-level after the breakdown from the short-term uptrend line. Nonetheless, we would only start being concerned on the market pullback if the 1,474-pt level is violated.
To see when the current retracement would end, we have drawn a short-term downtrend line to provide the guidance. Meanwhile, there is immediate support at the 1,552 pt-level, followed by the 1,543 pt-level. To the upside, we are eyeing an immediate resistance at the 1,576-1,577 pt-level, followed by the 1,588 pt-level.
Following the violation of the short-term uptrend line, it means that the FBM KLCI could succumb to further selling pressure. Anyhow, as we previously mentioned, as it was only a breakdown from a slightly more than 2-month old uptrend line, this breakdown had not dealt significant technical damage to its daily chart.
We are now cautiously bullish on its near-term technical outlook. A “cautiously bullish” statement denotes the possibly of the index eventually retracing to the 1,474 pt-level after the breakdown from the short-term uptrend line. Nonetheless, we would only start being concerned on the market pullback if the 1,474-pt level is violated.
To see when the current retracement would end, we have drawn a short-term downtrend line to provide the guidance. Meanwhile, there is immediate support at the 1,552 pt-level, followed by the 1,543 pt-level. To the upside, we are eyeing an immediate resistance at the 1,576-1,577 pt-level, followed by the 1,588 pt-level.
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