FBMKLCI – Correction Mode
Downtrend continues for FBMKLCI today with the index falling below the 20 days Moving average of 1,738 as of 9:30AM today. This confirms my earlier post of a correction mode in making.
In short, index is trading below short term average of 1,738 and medium term (50-MA) of 1789, indicating bearish momentum in control. It looks like KLCI is opening its new year with bearish mode short, medium, and even long term.
As long as the falling of oil price, weakening of Ringgit against USD still dominating the market sentiment, my opinion is that the downtrend is still a long way to go. It is probably going to breach next support of 1732 very soon, and subsequently going lower to 1700 and 1667.
With the current trend, any rebound will provide opportunity to exit a profitable position and wait to enter at a later stage. I would stay away from entering a position until a uptrend momentum is confirmed.
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