Will FBMKLCI continue to break resistance?
The main index FBMKLCI was at 1740 during the mid day break today, up 24 points from Friday’s closing. Referring to my previous post on the index, it seems to stand a good chance to close the previous gap of 1715-1731 at the end of today. So, its next target should be 1759 which is the 20 days moving average, follow by 1794 which is the 50 days moving average. The resistance at 1794 should be a strong one since it had a “false reversal” at that point back in mid October.
Market sentiment is still very much tagging along with a few developments currently, namely the crude oil price, Russian Ruble crisis, and the US Interest Rate policy. Oil price has so far stabilize with Brent last closed at above $62. US Energy stocks have recovered from its losses and did pushed the DOW to end Friday with 3 consecutive days of gain. All look good for a Christmas and year end rally for short term.
Lets wait and see, but as of now there is still no confirmation of bullish momentum yet.