The index remained in a side-way correction as it continued to trade between the support and resistance levels of 1,650 and 1,680 points respectively.
Last week, the index managed to find support at 1,658 points, which is where the long-term 200-day MA currently (25 Jan 2017) is. Trend-wise, the index remained bullish above both the short- and long-term 30- and 200-day moving averages. The index tested the 200-day moving average a few times last week and was able to stay above it.
Momentum indicators like the RSI and Momentum Oscillator rebounded after declining last Monday.
The indicators are still above its mid level. This indicates a bullish sentiment.
Furthermore, the moving MACD indicator declined but is still above its trigger line and the FBM KLCI is pulling back towards the middle band of the Bollinger Bands indicator.
However, it was able to hold well despite market waiting for Donald Trump’s inauguration as the new US president last week.
With a higher support at 1,658 points last week and trend being technically bullish, expect the market to stage a rebound this week and the FBM KLCI to test the immediate resistance level at 1,680 points.
The index may even climb to 1,700 points in the next one or two weeks if it can stay above 1,680 points.
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