Yesterday, the FBM KLCI convincingly broke above the 1,655-pt resistance level and gained nearly 12 pts, contrary to our belief that the index would take a breather after its six-day winning streak was snapped two days ago below the formidable 1,655-pt level.
The breakout of the 1,655 historic high also violated the “Neckline” of the “Double Bottom”, essentially confirming the “Double Bottom”, which may propel the index to greater heights.
Nevertheless, we still believe the FBM KLCI may start taking a breather anytime soon. From the recent major low of 1,595-pt level, the index has already rebounded about 66 pts in eight sessions. Moreover, it is very common to see a market consolidation around the “Neckline”.
Whether or not the market will start consolidating, our near-term technical outlook remains bullish. While the index is now trading at a record level, the daily RSI remained below the overbought territory, at the 64-pt level yesterday.
As the index enters an uncharted territory, traders could perhaps look at the 1,670-pt level as the next resistance, with the 1,700 psychological mark as the next major resistance. To the downside, look for the 1,655-pt level as the immediate support. Next support is at yesterday’s opening of 1,649.
Source: OSK
No comments:
Post a Comment