The
FBM KLCI has violated the 1,700 points support level and this shows
that the bullish sentiment has waned despite the market starting on a
bullish note.
The next support level is at 1,680 points while immediate resistance is at 1,720 points.
Despite the decline, the FBM KLCI remained bullish above the short- and long-term 30- and 200-day moving averages.
Momentum
indicators like the Relative Strength Index and oscillator have been
declining and this indicates stronger selling pressure and has caused
the bullish momentum to weaken.
Furthermore, the index has pulled back
to the middle band of the Bollinger Bands indicator.
Expect the market to continue its bullish trend after the correction.
The
next support level to test is the short-term 30-day moving average
currently at 1,688 points.
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