Tuesday, May 31, 2016

KLCI BEARISH...NEXT For INDEX ... Bearish Trend Weakened, Resis At 1640 Pts.‏

The FBM KLCI technical readings on the chart remained the same as the market was directionless. The trend remained bearish below both the short- and long-term 30-day and 200-day moving averages.

Momentum indicators are still bearish on the FBM KLCI, but they also indicate that the bearish trend has weakened. This indicates that market confidence is strengthening.

The Relative Strength Index continued to climb towards its mid-level. The moving average convergence divergence indicator has crossed above its moving average and the FBM KLCI is about to climb above the middle band of the Bollinger Bands indicator.

The index has to break above the immediate resistance level at 1,640 points to turn bullish.

The thinning Ichimoku Cloud indicator indicates resistance is weakening, and hence there is a high possibility for the index to break above the resistance level.

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