Yesterday, FBM KLCI closed at 1,335 which is very close to its minor support of 1,330. Today (at morning session close) KLCI was close at 1,336 pt (up 1.05 pt) which is seem a weak attempt to maintain within the 1,330 support. The last 3 price bars seem to be pretty bearish to me considering the sideway mode KLCI have been through since early April.
FBM KLCI daily chart up to today morning session close
The Andrew Pitchfork lower channel line already breached, signaling the bullish up trend (short to immediate) is halted. KLCI is expected to stall further, at best. The last few days price and volume action also signaling weak days ahead plus technical indicators such as MACD and Money Flow Index divergence also confirmed that..
I cannot expect KLCI to keep on stalling because it already been stalling since early April. I will not call it bullish unless the index manage to breakout from 1,350 pt resistance level which is "I don't think so" at this stage. In short, I expect the index to go into a bearish mode - more of down days within the next few weeks. Yes, a slow killing bear. I will say the next support level 1,300 pt is a crucial zone to watch for a bigger bear. Not that I think you have many stocks positions (probably already on the sideline) but taking any opportunity to sell is a good idea.
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