FBMKLCI Week 18 Chart Analysis

FBMKLCI has gone through 3 consecutive days of correction this week which has seen the index slip 21.76 points to 1842.93 as of Wednesday closing.


Technically, it has gone lower to possibly test its immediate support of 1836. Stochastic has gone into sell signal with %K line crossed below the %D line. The MACD has gone into negative with RSI has gone from overbought back to 50 level. There has been selling pressure in tandem with the correction in the US Market.

The index has broken below the 20 days moving average indicating a short term bearish momentum. I won’t be surprise if the index were to test the immediate support of 1836 pretty soon.  There has not been any new catalyst to the market and KLCI should be experiencing further correction, with investor taking profit from the recent gain in selective stocks.

Sector wise, Finance, Industrial, and Properties are major losers while IND-PROD, and Construction may see some rebound in action.


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