FBMKLCI - Consolidation in a downtrend.

2018년 11월 22일

Greetings to all.

The Bursa market has taken a hit from what it seems a short rally with 2 day gap up on 16th Nov and 19 Nov. Then the Bursa is closed on Tuesday on public holiday and the next day (Wed, 21st Nov) the market opened with a gap down and plunged -15.34 pts (-0.9%) on bad sentiment from the US and Crude Oil bad movement the day before.

Here is my latest update on the technical review for KLCI.

1. It is clear that the index has been on a short term downtrend ever since a short rally ended with a peak somewhere in late August 2018.
2. Since that moment, the index is giving out negative technical signals such as;
a. lower highs and lower lows,
b. breaking the long term EMA 200 support
c. candlesticks turning yellow which gives a confirmative negative trend signal
d. since the yellow candlesticks appear, it has been a steep decline thereafter.
e. currently a chart pattern, a consolidation in a downtrend, "bearish pennant" is spotted with a crucial support around 1672 - 1681. If the price breaks
this support and stays below, the next short term lower target (based on the fibonacci key levels) is likely to be 1658 and 1641.

Based on Fibonacci Key Levels,

Current immediate short term support of the index = S1 - 1681, S1 - 1672
Current immediate short term resistance of the index = R1 - 1708, R2 - 1736