KLCI Week 50 Summary
Malaysian stock market continues to head south this week with KLCI slides another 1% week-on-week. The sell down on Properties and Construction continues with the economy outlook remain cautious due to falling oil price and falling Ringgit. Ringgit has gone down further to its 5 years low with RM3.49 for USD$1 as of today.
As shared in my post last week, the 1740 support has been broken, and KLCI is likely to test its next immediate support of 1702. On the contrary, index needs to climb to 1766 and subsequently the 20-days Moving Average of 1790 before it picks up its bullish momentum to move higher. With the whole world eyeing on Oil Price, a trend reversal for KLCI is only likely to materialize if oil price does reverse to above $60 or better still $65. Will this happens? It all depends on whether there is changes in oil demand and supply in the near term. As I am writing this post, oil price has slump further as the International Energy Agency (IEA) forecast a weaker demand in year 2015. Full story here.